1. NFC Technology and Applications Assaf Sella CTO Texas Instruments Israel Feb-2012 1

2. Making Wireless 2 NFC – Wireless Connectivity by a Tap Setup Bluetooth/ WiFi connection Get on the bus by waiving your NFC phone Pay by Credit-Card Get and use coupons/loyalty points Enter Office / Hotel room Pass through Access gate Share business cards with a touch Get information by touching smart posters Use your NFC phone as an event ticket

3. Making Wireless 3 A New Old Technology 1980s - Smart Cards  ISO/IEC 7816 1998 - Contactless Smart Cards - Contactless Credit Cards - RFID tags Proximity Cards (5-10cm)  ISO/IEC 14443 Type A (MIFARE)  ISO/IEC 14443 Type B  ISO/IEC 14443 Type C (Felica) Vicinity Cards (1-1.5m)  ISO/IEC 15693 2012 (expected) - NFC Phones NFC-Forum specifications

4. Making Wireless 4 How Does It Work? Near field: R<λ (λ 22m @ fc=13.56MHz) Source: NFC Forum Proximity radio technology –Range: few centimeters –Data rate: 106-848Kbps –Frequency band: 13.56MHz (ISM band) –Power transfer Mutual Inductance (coupling coeff.) POWER DATA Load Modulation NFC ReaderNFC Tag Field Modulation

5. Making Wireless 5 Applications Technology benefits –Intuitive tap gesture –Inherent security –Asymmetric cost –Battery-less tag NFC in phones: modes and key applications - Reader: pairing, smart-poster Ease of Use - Peer-to-Peer: data exchange - Card emulation: payment, loyalty cards, ticketing Monetary The secure element & system architecture UICC (SIM) Standalone SE Removable SD card

6. Making Wireless 6 Mobile Payment Ecosystem IC provider (NFC/SE) Handset OEM MNOTrusted Service Manager Service provider and Issuers Example revenue model One time fee or recurring rent Setup & Maintenance fees Commission Commercial fees (for offers sent to phone) “Traditional Model” GSMA 2007 - Trusted Service Manager Commercial fees (for offers sent to phone)

7. Making Wireless 7 NFC Market Nexus S 4G Galaxy IIsBold 9900Curve 9360C7N9Sonic U8650 Mobile Connectivity Market NFC Attach Rate Source: iSuppli

8. Making Wireless 8 Observations and Summary NFC is here Ease of use is current driver Mobile wallet application emerging Drivers Maturity and scale of mobile payment ecosystem Ratification of NFC-Forum standards Proliferation of NFC-enabled phones Connectivity combo IC –Drive down incremental NFC cost Mass market e-wallet expected 2013-2014

9. Making Wireless 9 Thank You

10. Making Wireless 10 Backup

11. Making Wireless 11 Certification Time Line