NEAR FIELD COMMUNICATION

- A Whitepaper

-Kumar Anshuman PGDM(HR) IMT Ghaziabad e-mail : kumar.amshuman1@gmail.com

ACKNOWLEDGEMENT

We would like to take this opportunity to thank Mr. Dushyant Chhetri whose valuable inputs proved to be instrumental in completing this project. Mr. Chhetri is working with Tata Consultancy Services for more than 5 years and currently working as an Information Technology Analyst. Mr. Chhetri is an Industry expert in the field of Near Field Communication (NFC) and his interview proved to be really helpful in proceeding ahead in the right direction. Also we would like to thank our subject faculty Dr. Poonam Garg who has been graceful enough to allow us explore various technologies and come up with some idea of our own. It was a very learning experience indeed and her teachings as well as cooperation kept giving us the psychological boost much needed to successfully complete the project.

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Executive Summary
NFC (Near Field Communication) is a set of standards for mobile devices which allows them to exchange data with each other at a distance of not more than 10cm. The working principle of NFC is similar to that of RFID (Radio Frequency Identification), i.e. communicating by establishing a radio connection in a close proximity. In fact, NFC is said to be the child technology of RFID. Where RFID works in various ranges in both active and passive mode, NFC as suggested by its name works in close proximity mostly in passive mode. NFC is often compared with another existing technology of Contactless Smart Cards. Contactless Smart Cards operation is just one of the many ways in which NFC can be used. While Contactless Smart Cards are capable of only one-way communication, NFC has the capability to operate in two-way communication. For example, a NFC Smartphone can behave like a Contactless Smart Card as well as a Contactless Smart Reader. The Key applications of NFC can be categorized under 3 headings: Peer-to-Peer, where NFC is used to enable communication between two devices Payment & Ticketing, where NFC will build on the emerging smart ticketing and electronic payment infrastructures Service Initiation, where NFC is used to perform service discovery or to unlock another service (such as opening another communication link for data transfer).

Although NFC has been there for a long time, still the technology has a lot to be discovered and a lot more to offer. Market Analyst Gartner, in his latest Hype Cycle for Emergent Technologies (2012), places NFC in general in the Trough of Disillusionment with a time to plateau of two to five years. However, he puts NFC Payment in a separate category and places it at the border between the Peak of Inflated Expectations and the Trough of Disillusionment, according to which NFC Payment is seen a good five to ten years away. We intend to cover the different existing and upcoming application areas of NFC and the various modes in which the technology operates. To get a more realistic view of the whereabouts of the technology, we are looking forward to interact with a technology expert from IT industry whose firsthand experience will help us accomplishing this project in a more efficient manner.

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Contents
1 2 INTRODUCTION NFC System 2.1 2.2 2.3 2.4 3 4 Tag & Reader Communication Modes Specifications & Standards NFC Tag Types 5 6 6 6 7 8 9 10 10 12 13 14 16 17 18 20 21

NFC FORUM OPERATION MODES 4.1 4.2 4.3 Card Emulation Mode Read / Write Mode Peer to Peer Mode

NFC HARDWARE Contactless Card and Tags:

6 7 8 9

KEY NFC PLAYERS CHALLENGES AND ROAD AHEAD GLOSSARY REFERENCES

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1 INTRODUCTION
NFC is defined as a technology that allows two active devices embedded with chips transmit small pieces of data between each other when they are in close proximity of 1CM-4CM via short range wireless connection and at low speeds of 106-414 kbps, depending on the configurations. It is a low friction setup because of the close range that two NFC enabled devices can setup a connection. NFC is an upgrade of the existing proximity card standard (RFID) that combines the interface of a smartcard and a reader into a single device. It allows users to seamlessly share content between digital devices, pay bills wirelessly or even use their cell-phone as an electronic traveling ticket on existing contactless infrastructure already in use for public transportation. The significant advantage of NFC over Bluetooth is the shorter set-up time. Instead of performing manual configurations to identify Bluetooth devices, the connection between two NFC devices is established at once (under a 1/10 second). Due to its shorter range, NFC provides a higher degree of security than Bluetooth and makes NFC suitable for crowded areas where correlating a signal with its transmitting physical device (and by extension, its user) might otherwise prove impossible. Present and anticipated applications include contactless transactions, data exchange, and simplified setup of more complex communications such as Wi-Fi. Communication is also possible between an NFC device and an unpowered NFC chip, called a "tag".

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2 NFC System
2.1 Tag & Reader
NFC-based communication between two devices is possible when one device acts as a reader/writer and the other as a tag. The tag is a thin simple device containing antenna and small amount of memory. It is a passive device, powered by magnetic field. Depending on the tag type the memory can be read only, re-writable, and writable once. The reader is an active device, which generates radio signals to communicate with the tags. The reader powers the passive device in case of passive mode of communication.

2.2 Communication Modes

NFC devices support two communication modes: Active The target and the initiator devices have power supplies Can communicate with one another by alternate signal transmission Passive The initiator device generates radio signals and the target device gets powered by this electromagnetic field The target device responds to the initiator by modulating the existing electromagnetic field

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2.3 Specifications & Standards

NFC standards cover communications protocols and data exchange formats, and are based on existing radio-frequency identification (RFID) standards including ISO/IEC 14443 and FeliCa. The standards include ISO/IEC 18092 and those defined by the NFC Forum, which was founded in 2004 by Nokia, Philips and Sony, and now has more than 160 members. The Forum also promotes NFC and certifies device compliance. ISO/IEC 18092 /ECMA-340 (NFCIP-1) Defines communication modes using inductive coupling at 13.56MHz. Modulation schemes

ISO/IEC 21481 / ECMA-352 (NFCIP-2) RF signal interface Initialization and anti- collision protocols

ISO 14443 (both A and B) NFC Forum Standard NDEF -NFC Data Exchange Format - standard exchange formats for URI, Smart Posters etc. RTDs -Record Type Definition - An NFC-specific record type and type name which may be carried in an NDEF record. Tag Types - Tags Type 1/2/3/4/ mandated to be inter-operable with NFC devices

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2.4 NFC Tag Types

Tag 1 Type: Based on the ISO14443A standard. Are read and re-write capable and users can configure the tag to become read-only. Memory availability is 96 bytes which is more than sufficient to store a website URL or other small amount of data and is expandable up to 2 Kbyte The communication speed is 106 Kbit/s. Tag 2 Type: Also based on ISO14443A. Are read and re-write capable and users can configure the tag to become read-only. Basic memory size of this tag type is only 48 bytes although this can be expanded to 2 Kbyte. The communication speed is 106 Kbit/s. Tag 3 Type: Based on the Sony FeliCa system. It currently has a 2 Kbyte memory capacity The data communications speed is 212 Kbit/s more applicable for more complex applications Although there is a higher cost per tag Tag 4 Type: Compatible with ISO14443A and B standards. Pre-configured at manufacture and they can be either read and re-writable, or read-only The memory capacity can be up to 32 Kbytes The communication speed is between 106 Kbit/s and 424 Kbit/s

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3 NFC FORUM
The NFC Forum is a non-profit industry association formed on March 18, 2004, by NXP Semiconductors, Sony and Nokia to advance the use of NFC short-range wireless interaction in consumer electronics, mobile devices and PCs. The NFC Forum promotes implementation and standardization of NFC technology to ensure interoperability between devices and services. Mission The Near Field Communication Forum was formed to advance the use of Near Field Communication technology by developing specifications, ensuring interoperability among devices and services, and educating the market about NFC technology. Formed in 2004, the Forum now has 170+ members. Manufacturers, applications developers, financial service institutions, and more all work together to promote the use of NFC technology in consumer electronics, mobile devices, and PCs. Goals The goals of the NFC Forum are to: Develop standards-based Near Field Communication specifications that define a modular architecture and interoperability parameters for NFC devices and protocols Encourage the development of products using NFC Forum specifications Work to ensure that products claiming NFC capabilities comply with NFC Forum specifications Educate consumers and enterprises globally about NFC

The NFC Forum provides a highly stable framework for extensive application development, seamless interoperable solutions, and security for NFC-enabled transactions. The NFC Forum has organized the efforts of dozens of member organizations by creating Committees and Working Groups. In June 2006, only 18 months after its founding, the Forum formally outlined the architecture for NFC technology. The Forum has released 16 specifications to date. The specifications provide a road map that enables all interested parties to create powerful new consumerdriven products.

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4 OPERATION MODES
Potential NFC-enabled applications are endless, however, various application areas of the technology fall under 3 categories: Card Emulation Mode Read / Write Mode Peer To Peer Mode

4.1 Card Emulation Mode

This mode emulates a traditional smart card (such as MasterCard or Visa) and makes this mode convenient because of the already existing setup for the contactless payments by these smartcards companies. Thus NFC enabled mobile phone becomes a credit card. Some example uses cases for this mode include: Mobile payments (phone acts as a credit or debit card at point-of-sale) Mobile ticketing (you pay for a boarding pass on a public transport system like the subway with your phone) As a substitute for keys (unlock your hotel room door with NFC)

Payment & ticketing Payment and ticketing applications were one of the drivers for the creation of the NFC standard. Banks and mobile network operators are very interested in putting payment and ticketing applications on NFC-enabled mobile phones. Research conducted by Visa International found that 89 per cent of those who tried phone-based transactions preferred its convenience to alternative payment methods. Device manufacturers realized they needed a short-range communication standard that was compatible with the smartcard readers and other systems being rolled out by the transport industry. NFC enables smartcard payment and smart ticketing scenarios to be developed further by enabling any NFC-enabled device to be used as a payment and ticketing device an electronic wallet. Ultimately this would replace the myriad credit, debit, loyalty, pre-paid and other cards that people carry around in their wallets today.

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Initially, however, NFC-enabled enabled cards and devices are lik likely ely to be used for small payment situations, like vending machines and parking meters. In smart ticketing schemes, NFC-enabled NFC mobile phones could be used to check how much credit is left on a multi multi-use use smart ticket, without the user having to visi visit a ticket machine. Ultimately, when the NFC reader infrastructure, transaction handling and security checking routines are in place, NFC-enabled NFC devices could be used in any payment situation, just as credit cards are today. NFC-enabled enabled payment and ticketing are much easier and less costly to handle than cash and other traditional payment methods. In addition, users will have a record of even the smallest payments, which they do not with cash today.

Fig 1

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4.2 Read / Write Mode

The Read mode allows the NFC devices to read NFC tags on posters, stickers, and other stationary objects that contain certain types of information on them. For instance, you could tap your NFC phone on the reader tag in a movie poster and it would begin playing the movie trailer, ler, provide theater times, locations, and so on. The NFC device is active while the tag is in the passive mode. Also in Write mode, the he NFC device can write data to any of the supported tag types in a standard NFC data format. . For instance, in the propose proposed d Financial Inclusion NFC solution, Customers (Villagers) necessary bank information can be written on their personal smart cards (NFC Cards) either by a NFC phone or any other NFC device. Some example uses cases for this mode include: Smart posters, cards, s, stickers, etc : you can tap your phone to a tag embedded in some other object like a card or poster to get access to additional information; for example: tap a movie poster to see a trailer; tap a business card to pull up the contact info on your phone) Proposed FI Solution: Bank details will be stored on a personalized smart cards which can be read and modified as per the customers transactions by a bank agent carrying NFC device. This type of application could also be useful for obtaining further info information rmation about a product in store, or for downloading information about medication, simply by touching the NFC-reading NFC device against the packaging. There could also be applications in room climate control, where the user touches a particular point on a tab table le to initiate control of the air conditioning, for example. Lone workers such as security guards could use NFC NFC-enabled enabled devices to check in as they move around a building. W When hen a child gets home from school, he or she could touch an NFC sticker just inside de the door that sends an Im home from school messa message ge to a parent.

Fig 2

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4.3 Peer to Peer Mode

In the peer-to-peer scenario, NFC is used to enable communication between two devices so that data can be transmitted locally between the two. If the amount of information is relatively small (up to one kilobyte), it is possible to use NFC to transmit the data itself. However, a more common peer-to-peer scenario is likely to be when NFC is used to establish another wireless connection method (such as Bluetooth or WiFi) to carry the information to be shared. Peer-to-Peer mode is standardized on the ISO/IEC 18092 standard. Some example uses cases for this mode include: Access to a network or as a quick way to make a connection (make a Bluetooth connection or log onto a Wi-Fi network by tapping your phone to a tag) Make payments to another individual or business just by tapping the two phones together, for e.g.- Sambaza credit to a friends phone by tapping the two NFC enabled phones P2P could also go a long way in creating an enhanced multiplayer gaming experience Another example of this kind of application is when a user has taken a series of photos using a camera mobile or digital camera, and wants to print them out. The user simply touches the device against the NFC-enabled printer, and a Bluetooth connection is established to transmit the digital photos from the device to be printed out on the printer. Wireless Nirvana: Pairing Bluetooth with NFC NFC technology works in a similar manner to Bluetooth because the two technologies rely on close-range and secure transmission although NFC is faster to connect two active devices together but it cannot transmit as far as Bluetooth. Nokia is the only manufacturer who has taken advantage of pairing Bluetooth and NFC. Nokias recent Bluetooth devices, like the Luna headset and Play 360 external speaker, can be paired with a NFC-equipped Nokia phone with just a mere tap, sidestepping the old Bluetooth pairing process that often required users to find deeply hidden settings menus, execute searches for the device, and then enter PIN codes. Pairing Bluetooth and NFC by tapping on the phone is known as Wireless Nirvana

Fig 3

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5 NFC HARDWARE
NFC hardwares are generally categorized under 3 major groups: NFC Mobile Phones Contactless NFC Cards / Tags Contactless NFC Readers While NFC Cards / Tags and contactless NFC readers do form a part of the NFC ecosystem, it is the NFC Mobile Phones which are going to bring the revolution in the coming future. With big players like Nokia and Samsung already entered into the market with their NFC handsets, we can expect a wide range of NFC phones in the coming days. However, there are technologies available to make even the ordinary mobile phones as NFC enabled. Let us see the various ways in which NFC can be implemented in a Mobile Phone:

Fully Integrated into the handset NFC, especially in newer devices, can be fully integrated into the handset. That means that the NFC controller (the piece that does the actual communication) and the secure element (the secure storage area connected to the NFC controller) are both integrated into the handset itself. One example of a fully integrated NFC handset is the Google Nexus S, Google's flagship phone built in partnership with Samsung.

On a Sim Card NFC can be integrated into a SIM card - the card that identifies a mobile subscriber on an operator's cellular network. This way an ordinary mobile set can be converted into a NFC enabled set. Example: Watchdatas SIMpass. SIMpass is a SIM card-based mobile proximity payment solution. Inserting a SIMpass card into the handset, subscribers could then tap the handset for contactless micropayment.

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On a microSD card NFC technology can also be integrated on a microSD card, which is a removable storage card that uses flash memory. The SD card has the NFC chip which adds the NFC capability to the card and in turn to the phone. Again in this way an ordinary mobile set can be converted into a NFC enabled set. Example: Device Fidelitys microSD card. Many mobile phone owners use microSD cards to store photos, videos, apps and other files in order to save storage space on the phone itself. For phones that don't have a microSD card slot, accessories like cases or "sleeves" can be used instead. For example, Visa introduced a case for the iPhone which contains a microSD card manufactured by Device Fidelity to bring NFC technology to iPhone users.

NFC Stickers There are thin electronic stickers designed to add NFC communication capability to the existing mobile phones. These stickers need not to be affixed over the phone and can be kept at a distance as they communicate with the phone via Bluetooth. However, these stickers have the NFC capability as well to communicate with NFC Readers / Tags. The process takes place in two steps: Data is transferred from NFC Reader / Tag to the Sticker using NFC medium The same data is transferred ahead from Sticker to Phone via Bluetooth medium They integrate an internal rechargeable battery to get power independently of the phone battery. The battery can be recharged using RF Field using a charger supplied with the stickers or any other contactless reader. Example: MyMax Stickers by Twinlinx.

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List of devices

Mobile Phones / Tablets: Nokia 6131 Nokia 6121 Nokia C7 Samsung-Nexus S Taz Pad ZTE maxi plus5

Contactless Card and Tags:

Mifare 1k,4k,Desfire, Sony Felica. Oiste

Contactless Readers:
Omnikey CardMan 5321 NXP CL RD701 (tag read and write) SCM Microsystem Gemalto

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6 KEY NFC PLAYERS

As NFC is still in an emerging phase, it is very important that big players take the challenge and responsibility of taking the technology ahead. And this is the reason for existence of communities like NFC Forum. Although the sections above mentioned about various players in this field, let us again have a look at some major players in NFC technology:

Google They introduced Google wallet, added NFC hardware to its Nexus S (a venture with Samsung) and also into their Gingerbread version of their Android OS. Nokia They also incorporated NFCs to their phones a few years ago in US, that is, their 6,131 on T-Mobile and also in their latest C7 already in the Kenyan market. MasterCard - MasterCard is one of the pioneers of mobile payments and was instrumental in setting up a thriving infrastructure with Paypass in the US market. Enough time has passed for consumers to become accustomed to the concept of contactless pay, and the costs of setting it up on NFC enabled phones are a lot lower thanks to existing infrastructure. Samsung/Visa - Visa has already been hard at work rolling out its mobile payment system worldwide, but Samsung had partnered up with the company to get London hooked up for the 2012 Olympics. An Olympic and Paralympics Games mobile handset was available complete with a Visa-enabled SIM card. The idea is so crazy it might just work -- so long as the handset is offered at an affordable price, that is. International travelers will rely mainly on prepaid SIM cards to communicate during their Olympic visit, and we think having an inexpensive phone to go along with that SIM is a no-brainer.

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7 CHALLENGES AND ROAD AHEAD

Over the past few years there have been many trials and pilots to showcase the abilities of Near Field Communication (NFC) technology. Although these have been well received Demonstrating that customers enjoy making payments with their mobile devices and those merchants with POS terminals can efficiently process transactions only a few commercial implementations have been launched. This raises the question: why has NFC mobile payment technology not been more widely adopted? The mobile financial services industry acknowledges that a significant investment is required from merchants to install NFC-capable acceptance terminals, and there has to be a real and sustainable business motivation to make this commitment. In addition, there has also been a lack of commercially available and ready to purchase contactless mobile devices on the market. Although these factors are hindering the wide-scale implementation of mobile NFC payments, the industry is agreed that the technology is secure, powerful and capable, and once installed, provides multiple benefits to all stakeholders. What is of greater concern is the development and unambiguous definition of an ecosystem that can support the long-term evolution of this market while addressing the individual needs of a wide range of stakeholders. It is understandable that until stakeholders have a clear vision of the business model and the business case, there will be reluctance to invest the resources required to achieve NFC deployment on a mass market scale. NFC ecosystem stakeholders and their relationships can be represented as:

Fig 4

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Gartners Hype Cycle

Fig 5

Summary
Mobile contactless payments will happen as customers experience the benefit of them and demand them: there is a business opportunity to meet this demand. The technology is ready but at an early stage in terms of device and terminal availability. It is expected, however, that this will change dramatically in the short-to-medium term. Interoperability is a key factor. Although most customers conduct their transactions in just one domestic market, they should be able to effectively replicate this abroad. Because of different implementation options, however, the consistency of the customer experience cannot be guaranteed. The global infrastructure will be created through the connection of all the individual stakeholders and implementation models, with successful elements being adopted as best practice and becoming the standardized approach.

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8 GLOSSARY

Bluetooth : ECMA ETSI ISO : : :

Short-range (10100m) wireless communication protocol European Computer Manufacturers Association European Telecommunications Standards Institute International Organization for Standardization ISO standard governing proximity smartcards NFC Data Exchange Format Near Field Communication Radio Frequency Identification Record Type Definition Ultra Wide Band Wireless Fidelity Short-range wireless communication protocol based on the IEEE 802.15.4 standard Secured Element Point of Sale Mobile Contactless Payment Application Mobile Network Operators

ISO 14443 : NDEF NFC RFID RTD UWB WiFi ZigBee SE POS MCPA MNO : : : : : : : : : : :

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9 REFERENCES
1) Innovision Research & Technology plc: Near Field Communication in the real world part I 2) Innovision Research & Technology plc: Near Field Communication in the real world part II 3) Innovision Research & Technology plc: Near Field Communication in the real world part III 4) Muriira, M. Lawrence. Near Field Communication (NFC) Technology: The Future Payment Service for Kenya. International Journal of Computing and ICT Research, Vol. 6, Issue 1, pp.7383 http://www.ijcir.org/volume6-number1/article8.pdf 5) Mobey Forum: Business models for NFC payments 6) Android Mnchen 21.3.2011 : Near Field Communication (NFC) PPT 7) European, Mediterranean & Middle Eastern Conference on Information Systems 2012 (EMCIS2012)June 7-8, Munich, Germany: Adoption Of Near Field Communication Technology For Mobile Payments In The UAE 8) Vassilis Kostakos & Eamonn ONeill, Department of Computer Science, University of Bath: NFC on mobile phones: issues, lessons and future research 9) Forum.Nokia, 19.04.2011, Version 1.0: Introduction to NFC 10) Near Field Communication and the NFC Forum: The Keys to Truly Interoperable Communications 11) NFC Forum: Essentials for Successful NFC Mobile Ecosystems, October 2008 12) NFC Forum: NFC in Public Transport, January 2011 13) NFC Forum: Smart Posters: How to use NFC tags and readers to create interactive experiences that benefit both consumers and businesses, April 2011 14) http://readwrite.com/2011/02/25/nfc-in-2011-whats-nfc-and-why-do-I-care 15) http://www.gsmarena.com/glossary.php3?term=nfc 16) http://www.business2community.com/mobile-apps/near-field-communication-an-emerging-mobiletechnology-0165257

17) http://www.nfcworld.com/2012/08/16/317281/gartner-places-nfc-in-trough-of-disillusionment/ 18) http://en.wikipedia.org/wiki/Near_field_communication 19) Interview of the Industry Expert

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