NFC is Getting Commercial

Almost 40 pilot projects worldwide

From Shanghai to Oslo and from London to Istanbul: As one of the NFC development pioneers G&D has already helped to get 40 pilot projects off the ground. Most of these pilot projects focused on one application, for example public transport or contactless payment in restaurants and cafés. However, NFC’s multi-application use is particularly promising, i.e. the use of different applications on the smartphones.

From payment to access control, Telefónica enables multiple applications

Telefónica, one of the world’s largest telecommunications corporations, started a multi-application project in Madrid in April 2011. One of the project’s employees to make payments with their NFC-enabled Samsung mobile phones in shops, restaurants, and cafés. With the integrated application for access control, they also get mobile phone access to the company buildings in Madrid. NFC is therefore replacing smart card or key-based access.

Secure SIM cards and services are the key

A SIM card suitable for all NFC-enabled mobile phones has been specifically developed for this project by G&D, allowing for multiple applications. Our new card supports the Visa payment application and an SWP interface (Single Wire Protocol) which is the key for controlling various applications. In this configuration, the SWP interfaces enables the SIM card to communicate with the NFC chip of the mobile phone and therefore with the point-of-sale (POS) device. The card also emulates a MIFARE chip for electronic purse and access control. MIFARE is the predominant international standard for contactless communication, for instance for buying tickets. On top, G&D offers server software and services to managed the secure elements during the whole lifecycle.

The future is already upon us

Above all, NFC offers end-users added value services by combining several applications in just one system. In addition to standard payment functions in retail and public transport, it provides discounts and loyalty services and location-related information. G&D is currently working on future NFC functionalities such as allowing end-users to select their favourite bank while making payments, receive coupons and discounts, or top up their transport card using their mobile phone. Consequently, they will no longer need to carry these cards with them.