Contactless Smart Cards, RFID, Payment, Transit and Security

NFC phones will be available next year, says Ericsson spokesman

Thursday, June 25, 2009

One of the first questions always asked about NFC technology–that’s seen lots of trials but little else–is when will it become commercially available? For Swedish telecom Ericsson, it’s 2010. That’s the prediction of the company’s vice president of systems architecture during his speech at Ericsson’s Business Innovation Forum in Stockholm this week.

“A year from now basically every new phone that’s sold will have NFC. It’s a two-way, bio-directional RFID communication link that makes this device work as a tag or as a reader,” said Håkan Djuphammar.


But he sees NFC phones as more than just a new payment medium, which has been the focus of most of the trials so far. He mentioned that Ericsson is currently working with a utilities company that has around 15,000 keys, a logistical nightmare. Allowing doors to be opened via an NFC-capable phone would eliminate those keys and give the company better access control.

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The Smart Card Alliance Transportation Council has published a white paper examining how the transit industry can best make use of NFC technology.

“One of the major challenges facing transit agencies today is how to capitalize on the ever-growing popularity of mobile phones with a solid mobile strategy,” said Transportation Council Chairman Craig Roberts. “This white paper builds on the knowledge base developed in earlier white papers to foster a greater understanding of NFC technology, explain its role in the transit industry, and shed light on key issues facing the transit industry in developing a mobile strategy.”

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Sony has revealed its new NFC-enabled Xperia S smart phone at the Consumer Electronics Show in Las Vegas, according to ITProPortal.

The inaugural handset in Sony’s new line of NXT smart phones (as in “NeXT” generation), the Xperia S features a 1.5GHz dual-core processor, a 12MP camera, HDMI connection, 32GB of internal flash storage space and a 4.3-inch 720 x 1280 pixel display in addition to NFC.

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KT Corporation, Korea’s largest teleco, is predicting that 20 million NFC-enabled phones will be in the hands of South Koreans by the end of 2012 – accounting for nearly 40% of the country’s total population, according to NFC World.

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HID Global has announced the successful completion of the world’s first university pilot of NFC smart phones carrying digital keys.

First announced in September, the pilot involved a select group of students and staff at Arizona State University using NFC-enabled smart phones equipped with HID’s Secure Identity Object (SIO) Technology. Participants could gain access to their residence halls and other secure access areas by tapping their handset against a reader embedded in the door and entering a PIN, rather than use their plastic campus card.

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Market research firm Deloitte has released its predictions for the telecoms sector in 2012, which include a few caveats regarding NFC payments.

According to Deloitte, many people are still uncomfortable with the idea of paying with their phones due to concerns over security and the battery draining aspects of NFC – a perception service providers are going to have to overcome before widespread adoption can happen.

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Turkcell, Turkey’s largest mobile operator, has announced the launch of a SIM-based NFC road toll payment application on the Turkcell T11 smart phone.

Developed in collaboration with Bank Asya, the app allows users to migrate their plastic KGS toll payment cards onto their T11 smart phone to pay for fares when crossing bridges and freeway turnpikes.

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