HEADLINE NEWS

OTI to Supply Contactless and NFC Readers for Gasoline Stations in North America

Israel-based contactless and NFC vendor On Track Innovations announced Monday it had received an order for 30,000 readers for point-of-sale terminals at retail gasoline stations in North America.

Taxis in Major U.S. Cities to Get NFC-Enabled Video Ads

Riders in 5,000 taxicabs in the U.S. would be able to tap on NFC tags on video advertising screens to download apps, brand information, coupons, maps, music and videos, according to technology suppliers that have equipped the taxis for potential advertising campaigns.

Analyst: Banks Have More to Fear from Cloud-Based Technologies Than NFC

Banks have much more to fear from cloud-based mobile payment than from NFC, even if mobile operators control the secure elements that hold the banks’ payment applications.

GSMA Proposes Global Standard for NFC-Enabled Loyalty and Couponing–Using SIM Cards

May 10 2013 (All day)

The GSMA mobile operator trade group is proposing a global standard for how point-of-sale terminals talk to NFC-enabled mobile wallets to enable consumers to redeem coupons and rewards.

Taiwanese Bank Gets Approval for NFC-Enabled Credit Cards; Okay for Other Banks Expected

Taiwanese banking regulators, as expected, have approved the first bank to issue mobile credit cards that could be downloaded over the air to SIM cards.

UK Retailer Marks & Spencer Sees Growing Use of Contactless

Marks & Spencer, one of the UK’s largest retailers, announced today it had rolled out contactless payment to 644 of its UK stores and said 14% of its card transactions under £20 (US$30.97) are contactless.

Identive Reports Growing NFC Business; Blames Flat Sales, Losses, on U.S. Budget Cuts

U.S.-based Identive Group reported growing NFC and smart card reader business, but fell back into the red during for the first quarter, a loss it largely blamed on U.S. federal government budget cuts.

German Bank and Telco Hold Small NFC Trial; Larger Launches Planned in Country This Year

As Germany gears up for NFC, German bank Dortmunder Volksbank along with Telefónica (O2) Germany have launched a small pilot putting a credit application onto SIM cards in Western Germany.

Cashless Technology Company Announces Rollout of Isis SmartTap on Vending Machines

Vending technology company USA Technologies plans to integrate the SmartTap mobile-commerce software into all of the company’s nearly 100,000 NFC-enabled terminals on vending machines nationwide.

Infineon Introduces New Embedded Secure Element, Hoping to Tap Growing Market

Germany-based Infineon Technologies today introduced a new embedded secure element, targeting the growing market for chips that handset makers are including in their NFC-enabled devices.

Vendor Group: NFC Secure Element Market to Grow by Two-Thirds This Year

Smart card vendor association Eurosmart has substantially increased its estimate for NFC secure element shipments for 2012–by 50% to 150 million units–and forecasts that secure element shipments will grow by another 67% in 2013 to 250 million units.

Gemalto Reveals Some Details of MCX Deal; Vendor Will Earn Fees for Transactions

France-based smart card and security vendor Gemalto will operate the mobile-payment platform for U.S. merchant group MCX, earning a fee for every transaction, in addition to what appears to be a hosting fee it says is worth tens of millions.

Chinese Projected to Do $8 Billion in Contactless-Mobile Transactions in 2014

Chinese consumers will conduct $8 billion worth of contactless-mobile payments in 2014, up from about $900 million in payments this year, forecasts research firm ABI Research.

In its new report, Mobile Payments in China, the U.S.-based research firm projects a relatively slow ramp up of full NFC phones in the country, with just 7 million shipped in 2014. There were fewer than 50,000 shipped last year, according to ABI.

The 7 million NFC phone shipments would be only a very small fraction of the total number of subscriptions among China’s three mobile operators, which topped 860 million as of last March.

“It’s partly cost; we’ve seen greater interest with bridging solutions,” John Devlin, ABI’s senior practice director, autoID and smart cards, told NFC Times. “It’s going to be two or three years before more handsets will be available with NFC.”

Until then, Chinese telcos will make more use of bridge technologies, mainly flexible antennas connected to SIM cards that can give non-NFC phones a contactless interface. ABI projects these to rise from 2.5 million units in 2010 to 6.5 million in 2014. There are also some SD cards with flexible antennas being shipped.

The SIM-based flexible antenna units shipped to date are the SIMpass product from China-based Watchdata. No. 3 mobile operator China Telecom has been rolling it out. China’s other two telcos, China Mobile and China Unicom, have also tried it. Watchdata last December announced it had shipped more than 2 million SIMpass units, nearly all of them in China.

China Mobile had been promoting its own proprietary contactless-mobile technology, RF-SIM, as part of an attempt to move into the mobile-payment market. But the giant telco largely abandoned the technology last year. It will use contactless technology supporting the standard 13.56-MHz frequency, like Unicom, China Telecom and Chinese payment network UnionPay are supporting, with backing from the Chinese government. UnionPay has a rollout plan for contactless terminals.

China Mobile and China Unicom appear to be more fully behind full NFC technology, however, either with applications stored on embedded chips or SIM cards. China Mobile is still interested in getting a bigger piece of the mobile-payment pie, which is the main reason it bought a 20% stake in the Shanghai Pudong Development Bank last year.

Some observers believe NFC phone shipments will be higher than 7 million in three years, with Chinese handset makers working on low-cost NFC handsets. At least one China-based chip maker, Shanghai Fudan Microelectronics, has developed an NFC chip.

With Chinese telcos impatient to introduce contactless-mobile payment, ticketing and city applications, China could remain the largest market for bridge technologies for some time to come.

“In 2014, we see the time when that will start to change, and NFC handsets will start to outstrip bridging solutions for the first time,” said ABI’s Devlin.