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NFC Technology for Smart Wearables in the Payment and Transport Market IOT Asia 2016 Sebastian Ong Regional Marketing March 30, 2016 Chip Card & Security Infineon Technologies

NFC Technology for Smart Wearables

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Page 1: NFC Technology for Smart Wearables

NFC Technology for Smart Wearables in the Payment and Transport Market IOT Asia 2016

Sebastian Ong Regional Marketing March 30, 2016 Chip Card & Security Infineon Technologies

Page 2: NFC Technology for Smart Wearables

Agenda

NFC to Mobile Payment to Wearable

NFC mobile payment for wearable

1

2

3

2 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Infineon - broad security portfolio for mobile payment

Page 3: NFC Technology for Smart Wearables

Agenda

NFC to Mobile Payment to Wearable

NFC mobile payment for wearable

1

2

3

3 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Infineon - broad security portfolio for mobile payment

Page 4: NFC Technology for Smart Wearables

What is Near Field Communication (NFC)?

NFC is a short range wireless RFID technology

It is meant for applications where a physical touch – or close to it – is required

This action ensures the presence of a person and the intent to do something

4 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 5: NFC Technology for Smart Wearables

Why should I add NFC to my wearable?

5 2016-03-17 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 6: NFC Technology for Smart Wearables

NFC is usually backed by a Security Chip

› Contactless Payment requires a certified security chip (e.g. VISA®, MASTERCARD®, JCB®)

› Access Systems use security chips (e.g. CIPURSE™)

› Public Transportation Systems worldwide are using tickets that include a security chip

6 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 7: NFC Technology for Smart Wearables

NFC - The future of payment is mobile

Fast Payment transactions require less than

300ms contactless transaction time

Flexible Mobile wallets combine a multitude of cards and services

Secure Cerified hardware solutions provide bank-level security

7 2016-03-17 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 8: NFC Technology for Smart Wearables

NFC Payment grows strongly worldwide – U.S. market as an example

69,8

58,8

50,2

37,5

23,2

16,4

2014 2015 2016 2019 2018 2017

$8,7$3,7

$27,1

2015 2016 2017

$61,8

2014 2018 2019

$210,5

$114,6

$3.017

0

500

1.000

1.500

2.000

2.500

3.000

3.500

2014 2015 2016 2017 2018 2019

$1.231

$376 $224

$1.949

$721

US Proximity Mobile Payment Forecast 2014-2019

Proximity Mobile Payment Users

[Mio. users]

Proximity Mobile Payment

Transaction Volume

[Bio. USD]

Average Spend per User

[USD]

Source: eMarketer – October 2015

Proximity Mobile Payments in the US will reach 70 mio users and $210 bio volume by 2019

8 2016-03-17 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 9: NFC Technology for Smart Wearables

NFC attach rate on cellular handsets is projected to increase from 26% in 2014 to 90% in 2020

1.264

1.089

891

734

552

350

247

2019

2.217 (90%)

2020

2.464

2.332

2014

1.708

444 (26%)

2017

2.097

1.363 (65%)

2016

1.979

1.088 (55%)

2015

1.845

756 (41%)

1.658 (75%)

2.210

2018

1.982 (85%)

Thereof NFC-Enabled Handsets

Source: IHS Near Field Communications Report - May 2015

World shipments of cellular handsets and NFC attach rate

[Mio. units shipped]

Assumptions:

› NFC will become a standard technology being increasingly incorporated in smartphones, as well as into feature phones over the next five years

› Drivers by Operating system:

Android: It is expected to be the most widely used for NFC-enabled smartphones

iOS: NFC capability will continue to be incorporated by Apple into the iPhone

9 2016-03-17 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 10: NFC Technology for Smart Wearables

Increased market demand for Smart Wearables fuels Mobile Payment

› New devices and form factors (mobile stickers, fobs, key rings, wearables) feature mobile payment

› Market dynamic of smart wearables generates demand for multiple implementations of secure elements and payment realizations

› Online transactions rely on secure hardware authentication on smart wearables, for example FIDO token on bluetooth smart watch

92 119 163

215 271

340

2015 2017 2019 2020 2018 2016

The global market for smart wearables will reach 340 million units shipped in 2020 (IHS – 2016)

Wearables – Million units shipped

10 2016-03-17 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 11: NFC Technology for Smart Wearables

Agenda

NFC to Mobile Payment to Wearable

NFC mobile payment for wearable

1

2

3

11 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Infineon - broad security portfolio for mobile payment

Page 12: NFC Technology for Smart Wearables

Infineon at a glance

Financials Market Position*

Business Segments Employees

› Automotive

› Industrial Power Control

› Power Management & Multimarket

› Chip Card & Security

Strong technology portfolio with more than 25,000 patents and patent applications (as of Sep. 2015)

527 377 620 897

FY 12 FY 13 FY 14 FY 15

[EUR m]

# 2 # 1

Automotive Power Smart card

ICs

# 2 Strategy Analytics April 2015

IHS Inc. September 2015

IHS Inc. July 2015

Europe

14,533 employees

About 35,400 employees worldwide (as of Sep. 2015)

Americas

3,682 employees

Asia/Pacific

17,209 employees

33 R&D locations 20 manufacturing locations

Revenue Segment Result Margin

15.5% 14.4% 9.8%

13.5%

3904 3843 4320

5795

12 February 2016 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 13: NFC Technology for Smart Wearables

We are leading the Security Industry for over 25 years

Market leadership with broadest security offering

Innovation leadership for over 25 years

Driving open transport standards

First 32 bit multi-application security µc

First secure Flash Memory

Award winning Digital Security

Most innovative packaging technology

Enable world's fastest contactless e-Passport

Mobile Security TPM

Leading in embedded security

Smart Card µC ICs

Authentication

Payment Mobile Communication

Government Identification Transport

>20bn security

chips shipped

13 May 2015 Copyright © Infineon Technologies AG 2015. All rights reserved.

Page 14: NFC Technology for Smart Wearables

Infineon offers security solutions for smart cards and emerging use cases

14 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 15: NFC Technology for Smart Wearables

Infineon’s active Role in the Standardization Arena

Active contribution to ETSI standards

Contributing all

relevant activities

Serving solutions including OS

Focus on approvals for all relevant NFC products

Principal Member of NFC Forum

Active contribution of Open Standard for Public Transport

Security Founding Member

15 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 16: NFC Technology for Smart Wearables

Infineon is the only semiconductor company offering secured products for all mobile payment approaches

Contactless /

Dual Interface security controller

Boosted NFC Secure Element

Embedded Secure Element

Trust in Mobile Payment is built on hardware-based security

SWP Secure Element (NFC SIM)

Bank-Level- Security

Global compatible contactless

+

Contactless security controller

16 2016-03-17 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 17: NFC Technology for Smart Wearables

› On November 5th 2014, Infineon announced that its Boosted NFC Secure Element would be now used in Watchdata Technologies' new "Sharkey" smart wearable devices

› "Sharkey" smart watch and wristband are no longer just personal sport management devices. Now they can also serve as secure bank cards and contactless tickets when taking public transportation

› Boosted NFC provides high levels of security, certified by Common Criteria EAL 6+ as well as approval from EMVCo

The Secure Element from Infineon can be seamlessly integrated into our smart wearable device while providing sophisticated security functions and excellent contactless performance

Watchdata Technologies

Boosted NFC Secure Element for Watchdata's new smart watch and wristband

Reference Project Watchdata: Infineon brings security to Smart Wearable Devices

17 2016-03-17 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 18: NFC Technology for Smart Wearables

Infineon supports Gear S2 Smartwatch for Secured NFC Payment

› Infineon provides the embedded Secure Element (eSE) chip for Samsung Gear S2 models

› The chip safeguards users’ sensitive data and supports secured contactless payment transactions based on Near Field Communications (NFC) technology

› The SOLID FLASH™ based SLE 97 eSE securely stores encryption keys, users’ payment credentials and biometric information for convenient fingerprint authentication and other applications

› The chip is certified according to Common Criteria EAL5+ (high) and supports EMVCo (Europay International, MasterCard, VISA)

“We are pleased to support Samsung, the world’s leading smartphone vendor, with our security expertise to protect user credentials. Our embedded Secure Element chips are easy to integrate and a perfect match for convenient, secure transactions with wearable devices.” Dr. Stefan Hofschen, President of the Chip Card & Security Division of Infineon.

Securing mobile connected life: Samsung Smartwatch

18 2016-03-17 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 19: NFC Technology for Smart Wearables

Offering A Broad Portfolio of Security Solutions

IoT Security Government

Identification Payment

High-end Mobile Communications

› Greater adoption of NFC technologies

› Larger memory (1.5 MB)

› Multi-application cards

› EMV migration in China and U.S.

› More countries joining (India, APAC)

› Growth of mobile payment

› Rising adoption of electronic documents (national ID cards, passports, health cards, etc.)

› Increasing memory requirement

› Home and factory automation, Automotive, Wearables, etc.,

› Increasing need for security

› Growth of M2M communication

19 2015-11-14 confidential Copyright © Infineon Technologies AG 2015. All rights reserved.

Page 20: NFC Technology for Smart Wearables

Our IoT Security Portfolio The Right Security for IoT

User identification

› Enabling User-friendly two-factor authentication according to new FIDO 1.0 specifications

› Boosted NFC SE solutions integrate new-est technology towards the completely secured NFC experience for SIM, MicroSD™ or wearables

› Embedded Secure Element

› Boosted NFC

› FIDO

› USB Tokens

› RFID

Secured connectivity

› Security controllers with increased lifetime, mechanical robustness and extended temperature range

› Ideal for embedded SIM cards in industrial M2M and Automotive applications

› M2M Industrial: SLM 76 and SLM 97 SOLID FLASH™ Families

› M2M Automotive: SLI 76 and SLI 97 SOLID FLASH™ Families

Embedded security

› OPTIGA™ product family - security products for Embedded Systems

› Tailored, scalable, and easy to implement security for IoT, ranging from basic authentication products to advanced implementations

› OPTIGA™ TPM

› OPTIGA™ Trust Family

20 October 2015 Copyright © Infineon Technologies AG 2015. All rights reserved.

Page 21: NFC Technology for Smart Wearables

Agenda

NFC to Mobile Payment to Wearable

Boosted NFC for wearable

1

2

3

21 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Infineon - broad security portfolio for mobile payment

Page 22: NFC Technology for Smart Wearables

Challenges for a Secured Smart Wearable Device from a hardware design perspective

Challenge 2:

Ultra small antenna dimension

Ultra low Power Application Processor

Display

BLE

Sensor

Other Compo-nents

SE (Boosted)

Challenge 1:

Ultra low power consumption

Secure Element as NFC card or online authentication token

22 2016-03-17 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 23: NFC Technology for Smart Wearables

What is Boosted NFC?

Passive NFC components

harvest energy only from the contactless field

Boosted NFC components

use some power from the wearable device

SECURITY CHIP

Battery

Boosted NFC SE

Booster

23 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 24: NFC Technology for Smart Wearables

Boosted NFC SE can be offered in Module with all Antenna components

Antenna matching components

AS3922 Booster

Integrated Antenna

Power supply and interface: ISO 7816, SPI or I2C

Different Dimensions based on the antenna design

Boosted NFC SE

24 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 25: NFC Technology for Smart Wearables

Key Take Aways

› Mobile Payment grows strongly, fueled by increased market demand for smart wearables.

› Smart Wearables demand highly integrated security and contactless functions due to ultra small size and need of low power consumption

› Bank-Level-Security is key for Mobile Payment Services and can only be achieved with hardware-based security

25 2016-03-17 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 26: NFC Technology for Smart Wearables

Contact Information

Thank You For Your Attention

Sebastian Ong Regional Marketing Chip Card and Security Regional Center- Asia Pacific Infineon Technologies Asia Pacific Pte Ltd

INFINEON 8 Kallang Sector Singapore 349282 Phone: +65 68763367 Mobile: +65 96576675 E-mail: [email protected] URL: http://www.infineon.com/

26 2016-03-11 Copyright © Infineon Technologies AG 2016. All rights reserved.

Page 27: NFC Technology for Smart Wearables