NXP Wins Back NFC Controller Business for Samsung Flagship But Misses on Embedded Chip

NFC Times Exclusive: Samsung Electronics has switched back to an NFC controller chip from NXP Semiconductors for most of the planned shipments of its new flagship, the Galaxy S5, but the phones will not pack NXP’s embedded secure element, NFC Times has learned.

Samsung, which unveiled the Galaxy S5 last week for planned release in April, chose NXP’s highly regarded PN547 NFC radio chip over one from U.S.-based Broadcom, which supplied the Galaxy S4 with NFC technology.

But NXP’s new large memory embedded chip was not ready in time to be stacked with its NFC controller. And this–combined with continued pressure from telcos to stop offering the embedded chip, in addition to the advent of host-card emulation, among other issues–caused Samsung to decide to do without the secure element in most Galaxy S5 shipments, sources told NFC Times.

That is a big shift from the Galaxy S4, which is believed to have carried an embedded secure element in every phone shipped globally, though mobile operators, such as those making up the Isis joint venture, ordered Samsung to deactivate the chip in phones shipped to them. The  embedded secure element in the Galaxy S4, from Oberthur Technologies, using an STMicroelectronics chip, was paired with Broadcom’s NFC controller.

For the Galaxy S5, Samsung plans to include an embedded chip in selected markets, but sources say these will likely be few in number–only those where banks or other issuers have already introduced payment on embedded chips or are in the process of doing so. For these devices, Samsung will use the older NFC chip combination from the Galaxy S4–supplied by Broadcom and Oberthur, sources said.

Overall, the move by Samsung to greatly reduce the footprint of embedded chips in its flagship smartphone casts doubt on Samsung’s strategy to offer banks and other issuers an alternative to NFC SIMs–which was to be targeted in markets where most smartphones are sold on the open market. It also calls into question the viability of the embedded chip as an option for mass-market rollouts.

The new phone will run Android 4.4, so will support host-card emualtion as a default feature. But this is not the main reason most Galaxy S5s will not pack an embedded chip, sources said.

Words:

2,000

Graphics:

Major design wins: Broadcom vs. NXP

NXP's NFC controller shipments, 2011-2013

Among Topics Covered:

  • Inside story about selection of NFC technology for the Samsung Galaxy S5
  • Possible impact of NFC chip configuration in Galaxy S5 on Samsung’s embedded chip strategy.
  • How the absence of embedded chips in the GS5 will affect total shipments of embedded secure elements in 2014
  • Two markets where Samsung is definitely expected to offer the GS5 with embedded chips
  • Figures on global NFC SIM shipments in 2012, 2013 and projection for 2014
  • Details of telcos blocking Samsung embedded chips
  • Issues affecting readiness of NXP’s new embedded chip
  • Problems with Broadcom’s NFC controller
  • Samsung's overtures to Oberthur

Among companies and organizations mentioned:

Samsung Electronics
NXP Semiconductors
Broadcom
Oberthur Technologies
Google
Isis

This is premium content from NFC Times.

Read Full Article 

© NFC Times and Forthwrite Media. NFC Times content is for individual use and cannot be copied or distributed without the express permission of the publisher.

HEADLINE NEWS

In-Depth: Tokenization Figures Demonstrate Majority of Mobile Payments Conducted Online

NFC TIMES Exclusive Insight –  Recent research and forecasts have confirmed what industry observers already knew: Despite concerted efforts by the Pays wallets to gain widespread use of mobile payments in the U.S. at the physical point of sale, the large majority of mobile payments are conducted online, not by tapping NFC phones or wearables in stores.

Visa and Mastercard Forecast More Growth in Contactless in U.S., Spurred in Part by New York Fare Payments Service

NFC TIMES Exclusive Insight - The heads of the two largest payments networks in the U.S., Visa and Mastercard, predict strong growth for contactless payments in the U.S., with Mastercard CEO Ajay Banga noting that 70% of U.S. Mastercard-branded cards in the U.S. are coming up for reissue over the next 12 to 14 months, and most of these cards will be issued with a contactless interface. A large number of Visa-branded cards will be reissued with a contactless interface during that period, as well.

Transport Officials in Sydney See Growing Demand for Contactless Fare Payments but Have No Plans to Retire Closed-Loop Opal

NFC TIMES Exclusive Insight – Transport officials in Australia have released figures on use of contactless payments in Sydney and New South Wales, showing that customers tap their contactless credit and debit cards and NFC devices for an average of 1.5 million transactions per week, accounting for a relatively small but respectable number of transactions.

Insight: Moovit and Cubic Betting that MaaS Can Help U.S. Transit Agencies Regain Lost Ridership

Jan 24 2020

NFC TIMES Exclusive Insight – With public transit ridership decreasing in most large U.S. cities over the past five years, transit authorities are more open to becoming part of Mobility-as-a-Service platforms, which could potentially increase ridership for their rail and bus networks while offering customers options for the first and last mile. 

Philadelphia Transit Authority Confirms Plans for Launch of Open-Loop Payments after Delays

NFC TIMES Exclusive Insight – The Southeastern Pennsylvania Transportation Authority, or SEPTA, in Philadelphia plans to introduce open-loop payments of fares, with a pilot scheduled for around June, a spokesman confirmed to NFC Times. It makes SEPTA part of a small but growing number of U.S. transit agencies that are accepting payments of fares from contactless bank cards and NFC wallets or are planning to do so.

Contactless Payments of Fares Gets Slow Start in Miami, According to Figures

NFC TIMES Exclusive – Take-up of open-loop contactless payment of fares in Miami-Dade County, Fla., has been slow so far, more than four months after transit

Mobility as a Service Continues to Get Rolling with Uber Expanding Service to Second U.S. City

NFC TIMES Exclusive Insight – Mobility as a service is expected to reshape the traditional transport industry, and while it is just getting rolling, the pace is starting to pick up. The latest bit of momentum came this week when global ride-hailing service Uber announced it will enable mass transit riders to buy and redeem tickets from its app in a second U.S. city, Las Vegas.

Contactless EMV Card Rollout in U.S. to Pick Up Speed in 2020, but Shape of Adoption Remains Unclear

NFC TIMES Exclusive Insight – With contactless EMV cards expected to have a significant footprint in the U.S. in 2020, the debate continues over whether the rollout will promote or harm take-up of NFC mobile payments and whether contactless open-loop transit payments will make a real impact on use of contactless at the retail point of sale.

More Open-Loop Transit Payments Services to Launch in Taiwan

Dec 24 2019

NFC TIMES Exclusive Insight – Taiwan’s airport train service will begin accepting Visa- and Mastercard-branded credit cards starting next month, making it the second mass-transit service on the island nation to support open-loop payments for fares.

In-Depth: China Moving Forward On Face Payments of Transit Fares, Despite Some Hesitation by Users of Technology

NFC TIMES Exclusive Insight –  More and more Chinese cities are trialing use of facial recognition technology for transit ticketing, a development that could enable users to avoid either cards or smartphones to pay fares on subways and other modes of transit.

Apple Launches Express Transit in London; Mobility Service also Adds NFC Payments Feature in Apple Wallet

NFC TIMES Exclusive Insight – Apple has expanded its Express Transit service to another major market, enabling Apple Pay users to pay for fares on Transport for London-run trains and buses without first authenticating themselves on the NFC devices.

Analysis: Outlook Remains Dim for Bank Mobile Wallets as Another Major Bank Plans to Shut Down its Wallet App

NFC TIMES Exclusive Insight – Major Dutch bank ABN Amro will discontinue its NFC-enabled mobile wallet in January, a little more than three years after launching the app in late 2016, with the bank acknowledging that few customers use the service.