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.

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.

Inside Reports NFC Revenue Down Sharply in First Quarter; Some Recovery Expected in Q2

France-based chip supplier Inside Secure today reported a sharp decline in its revenue in the first quarter from its NFC chips, blaming the situation on excess inventories of NFC chips on hand by its main customer BlackBerry.

NXP Discloses Design Wins for More than 130 NFC Handsets and Tablets

NXP Semiconductors CEO Rick Clemmer said the chip maker has notched design wins for more than 130 handsets and tablets, giving it an “Intel-like” market share for the number of devices being designed with NFC chips.

Clemmer, speaking in a fourth quarter conference call with financial analysts Thursday, confirmed that NFC handset shipments during 2011 were lower than the chip maker had originally projected.

But he said 2012 would be a “very solid year” for NFC business, and the percentage of handsets supporting NFC would be higher than in 2011.

The more than 130 design wins are an increase from the more than 90 handsets and tablets Clemmer said were in the pipeline using NXP chips in November, during the company’s third quarter conference call.

Clemmer said the attach rate for NFC chips was only 10% of the 445 million smartphones shipped in 2011, lower than the 16% rate–or 70 million phones–that NXP had originally projected. He declined to project NFC device shipments for 2012.

“It’s clearly going to grow significantly,” he said. “We learned our lesson last year that we’re not going to get into the forecast business for NFC attach rate. Clearly, we have encouraging signs and encouraging order levels from a number of customers with the 130 handsets and tablets that have designed in our NFC product.”

When asked by an analyst for NXP’s market share of total design wins, Clemmer said he knew of only six to eight models not using NXP chips.

“(We have) Intel-like market shares associated with the design-win basis,” said Clemmer. “We’ll have to see how the volume ramps up for each one of those users (customers).”

NXP has enjoyed the entire market for Android-based smartphones and tablets as well as other phones shipped by the two largest handset makers, Nokia and Samsung.

Rival NFC chip maker Inside Secure, which this week relaunched its initial public offering, has the other design wins, though in the past has disagreed with Clemmer’s market-share estimates.

Inside’s chips run in at least seven BlackBerry models, some of them closely related, along with at least one model of rugged work phones from U.S.-based Sonim Technologies. Inside also said it will get NFC business from Chinese phone maker ZTE, though no ZTE phones carrying Inside NFC chips have been introduced. And Inside this week also announced a design win from a leading smartphone maker on a major mobile platform, which will either be Windows Phone or Android. The smartphone maker, which Inside declined to name, will introduce the model in mid-2012.

Inside said it shipped just under 17.5 million NFC chips in 2011, which CEO Rémy de Tonnac contends gave it 50% of the market, based on an estimate of 35 million NFC phone shipments for the year by UK-based IMS Research. NXP had the other half of the market, he told NFC Times Tuesday.

NXP declined to respond to a request to rebut de Tonnac’s estimate. But if NXP’s estimate Thursday that a little more than 40 million NFC phones were shipped in 2011, using chips from both NXP and Inside, is correct, it would give NXP the edge in unit shipments for the year.

Clemmer, during the conference call Thursday, said sales in NXP’s mobile transactions unit, which takes in NFC chip revenue, grew by 30% in the fourth quarter of 2011 compared with the third quarter. But NXP does not break out figures for the unit, which is part of NXP’s Identification division.

All told, sales in the ID division, which also includes chips for Mifare transit, banking and ID cards, as well as e-passport chips, dropped by 3.7% in the fourth quarter of 2011 to $155 million, compared with the same period in 2010. Q4 2011 sales in the division were also down by about 3% from the third quarter of 2011.

Demand in the ID division was weak during the second half of 2011, Clemmer said, compared with the first half of the year. Overall, the division had sales of $698 million for all of 2011, an increase of 18.5% over 2010. NXP is projecting growth for the division in the low double digits in the first quarter of 2012.

“What we’ve seen is a rebound in the demand of the core business as well as the mobile transactions side,” said Clemmer.