A Researcher's Perspective: What do Researchers Need? Challenges and Potentials for PURE
"Potentials and Challenges for Mobile Commerce - a Nordic Perspective
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Center for Wireless Innovation Norway cwin.no CWI Norway TAMoCo workshop, Merida, Sep 2009 Potentials and Challenges for Mobile Commerce - a Nordic Perspective Professor University of Oslo/UNIK [email protected] Josef Noll Senior Advisor Movation AS [email protected]
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The presentation provides service examples for mobile commerce in the Norwegian/Nordic market. It shows the fantastic increase of easy mCommerce services. Easy still means SMS-based services, as applications (applets) are still too specialised for many people. Even through trends from iPhone, Android and S60 applications show an increased usage, this increase is small as compared to the uptake of SMS-based banking services. And we are all waiting for NFC, to give a real boost to mobile-initiated payment and access solutions. This presentation was given at the Tamoco workshop in Merida in September 2009.
Transcript of "Potentials and Challenges for Mobile Commerce - a Nordic Perspective
Center for Wireless Innovation Norway
cwin.no
CWINorway
TAMoCo workshop, Merida, Sep 2009
Potentials and Challenges for Mobile Commerce - a Nordic Perspective
ProfessorUniversity of Oslo/UNIK
Josef NollSenior AdvisorMovation AS
Sep 2009, Josef NollMobile Innovations
Research and Education at Kjeller
Close relation to FFI, IFE, NILU,...
Prof. from Univ. of Trondheim and Oslo
2
The building where the Internet (Arpanet) came to Europe in June 1973
Source: Wikipedia
.... and the Internet
Mobile Payment - Sept 2009 - Josef Noll
“Innovation by Design”
"Movation is a very exciting initiative where some of the best companies in
Norway commit themselves to build the Norwegian national team in wireless
technology innovation”
– Paul Chaffey, Abelia
founded by:
3
Sep 2009, Josef NollMobile Innovations
Outline Admittance, service access and payment Mobile extensions Introduction of Near-Field Communications (NFC)
– Message: “Using the phone for payment and access”– Phone implementations
Roadmap– Single Wire Protocol (SWP), – Future SIM
“While waiting for the future SIM” – Alternative Solutions
4
Mobile Payment - Sept 2009 - Josef Noll
Mobile Market• Mobile workforce: 40-70
% of a group in different locations
• 90 % of the employees away from HQ
• 2006:• 1020 million mobiles
• 209 million PCs
• 4 Billion people with mobile in 2009
• Q4/2006: > 30 % smartphones in Norway
• 20-30 % smartphones by 2009.Nordic European
0
17,5
35,0
52,5
70,0
2006 2008 2010
Smartphone penetration [%] in Europe and the Nordic
0
22,5
45,0
67,5
90,0
2006 2008 2010
Opera Desktop Adobe Flash J2ME (Opera Mini)
Handset functionality in market share [%] for the Nordic market
[“Mobile Phone Evolution”, Movation White paper, May 2007] 5
6
Norway seems to have a highly favourable payment mix, with lowest retail cash usage (McKinsey & Company 2005)
1
20
0 00 0
0 5 8
0
5 3 9
34
1313 17
13
1517
25
2 0
6 12
2
1
2
75
31
1 0 1 15
2 37
3 5 3 14
0
0 10
2
1 758 1 970 1 505 1 467 985 1085 1 403 1 237 1 068100%
Number of retail transactions per household, percent
SP IT GE NLBE UK FR SEPL
Cash
Check
Cards*
Direct Debit
Transfers
*Including E -Purse
1 702
PT
98 93 93 87 86 82 82 79 78 75 72 71 70
AT CH NO
1 515 991 1 184
source: Bent Bentsen, 2008
Josef Noll, Sep 2004 Enabling Communication 7
Service development on Mobile Phones
1G:
1970 1980 1990 2000 2010
3G:
2G:
B3G:
Mobile telephony
Mobile telephony, SMS, FAX, Data
Multimedia communication
Personalised broadband wireless services
Original: B3G study, Jan 2001
Josef Noll, Sep 2004 Enabling Communication 8
Phone with RFID & PKI
• Workshop March 2003: RFID and the mobile phone
• Three steps:• A: Single RFID chip in mobile
phone
• B: Dongle with RFID (to allow communication between RFID and SIM/phone) – prototype 09.2004
• C: SIM card with integrated RFID (prototype 10.2004)
l SIM card with integrated RFIDl Prototypes available from:
– Giesecke & Devrient: demonstrated on Siemens phones
– Gemplus: both on one chip, (terminated) NFC
Original: NFC and Payment, Sep 2004
Josef Noll, Sep 2004 Enabling Communication 9
Mobile phone replaces purse, October 2004
10
Customer adoption• More than 360.000 customers• Fastest growing distribution channel ever!
0
100 000
200 000
300 000
400 000
Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109
DnB NOR and Postbanken SMS - Registered users per quarter
source: Ingjerd Blekeli Spiten, 2009
It happened - Q4.2007
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E-Invoice and friend services
You have received an e-Invoice from Telenor NOK 300; due 01.06.2008. Ref.id.: 10.To accept: Send SMS Accept [ref.id] to 04800
From 04800 To 04800
Accept 10 E-Invoice from Telenor NOK 300 is handled and will be paid 01.06.2008 from you main account
From 04800
source: Ingjerd Blekeli Spiten, 2009
Pay Ben 100
To 04800 From 04800We confirm that Ingjerd has paid 100 to you by mobile. Best regards DnB NOR
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Who is the SMS customer?
0
25000
50000
75000
100000
1 11 21 31 41 51 61 71 81
# of SMS by age - January 2009
- Age 9 – 96 years- 19 most active- Oldest customer 96 years
source: Ingjerd Blekeli Spiten, 2009
Josef Noll, Sep 2004 Enabling Communication 13
ViVOtech 2006:
Contactless replaces cash
Device Fragmentation(handsets, operating system, security and network technologies)
source: Svein Therkelsen, mBricks, 2008
Sep 2009, Josef NollMobile Innovations
NFC is ...
RFID at 13.56 MHz RF (modem) and protocolls
15
Passive operation:1) Phone=Reader has static magnetic field2) Tag acts as resonator, “takes energy” ~1/r^6
0 0,8 1,6 2,4 3,2 4 4,8 5,6 6,4 7,2 8 8,8 9,6
0,25
0,5
0,75
1
1/r^2
1/r^6
Power decrease of static and electromagnetic field
Sep 2009, Josef NollMobile Innovations
NFCIP-2 Interface and protocol (ISO/IEC 21481)
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ECMA-340
Interface Standards
ISO/IEC 14443
PCD mode
(MIFARE, FeliCa)
ISO/IEC 15693
VCD mode
(facility access)
NFC device Proximity CardReader
Vicinity CardReader
NFC ECMA-340
YES340 okay
Mobile Payment - Sept 2009 - Josef Noll
Mobile Services, incl. NFC• Focus in 2008 on mobile
web• Push content upcoming
• NFC needs next generation phones• S60, UIQ, ...• Common Application
development• Integrated
development
[“Mobile Phone Evolution”, Movation White paper, May 2007]
Expected customer usage [%] “have tried” of mobile services in the Nordic Market
0
15
30
45
60
2006 2008 2010
SMS authentication Mobile WebPush content NFC payment
17
Sep 2009, Josef NollMobile Innovations
NFC use cases Payment and access
– include Master-/Visacard in the phone– have small amount money electronically– admittance to work
Service Discovery– easy access to mobile services:
Web page, SMS, call, ...– local information and proximity services (get
a game) Ticketing
– Mobile tickets for plain, train, bus:Parents can order and distribute, ...
18Source: Nokia 6131 NFC Technical Product Description
Sep 2009, Josef NollMobile Innovations
Nokia 6131 Firmware
19Source: Nokia 6131 NFC Technical Product Description
ISO14443
Sep 2009, Josef NollMobile Innovations
From current SIM to Future SIM
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New visionsfor mobile / UICC
Current Telenor Current Telenor
SIM (UICC) cardSIM (UICC) card(from 2001)(from 2001)
GlobalPlatform’s
Real Estate 3.rd
Party sec. domains
vision
SUN
2009?
(Java)
Plus ETSI SCP
3 new phys IFs:
12 Mb/s USB
NFC (SWP)
On-board
WEB server !
Multi-
Thread
New visionsfor mobile / UICC
Current Telenor Current Telenor
SIM (UICC) cardSIM (UICC) card(from 2001)(from 2001)
GlobalPlatform’s
Real Estate 3.rd
Party sec. domains
vision
SUN
2009?
(Java)
Plus ETSI SCP
3 new phys IFs:
12 Mb/s USB
NFC (SWP)
On-board
WEB server !
Multi-
Thread
Source: Judith Rossebø, Telenor
To comply with 3G networking requirements (USIM)
– Security features (algorithms and protocols), longer key lengths
– GSM uses EAP SIM: client authentication– UMTS uses EAP AKA: Mutual authentication
3rd party identities – ISIM application (IMS) – private user identity – one or more public user
identities– Long term secret
Sep 2009, Josef NollMobile Innovations
New UICC architecture
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eHealtheHealth
UICC – elements
UICC UICC ID = ICCIDID = ICCID
12 Mb/s USB
Full speed IF
NFC (or other) IF
(1 connector)
GSM Allocated
(2G/3G) IFs
(5 connectors)
New UICC Architecture / SIM advances
SIM Application Toolkit SIM Application Toolkit !! CAT CAT
PKI / PKI / eIDeID
PaymentPayment
EMVEMV
MultimediaMultimedia
DRM ?DRM ?
TicketingTicketing
(DRM !)(DRM !)
ElectronicElectronic
Purse Purse
Common Common
StorageStorage
USIMUSIMID= IMSIID= IMSI
& MSISDN & MSISDN
SIMSIMID= IMSIID= IMSI
& MSISDN & MSISDN
PhonebookPhonebook
Source: Judith Rossebø, Telenor
Mobile Payment - Sept 2009 - Josef Noll
One natural NFC player?• Telecom Operators✓ have established customer and content provider relation✓ current business (content provider access) gets less important ✓NFC is opportunity for new business– inhomogenous infrastructure at operators
• Bank, Mastercard, Visa,...✓ natural choice for payment solutions– micro-payment and small transactions not successful– integration of content providers is new area, mobile is Telecom
• SIM card provider: Gemalto, G&D✓ harmonised infrastructure
– unknown for the customer, no trust relationship
• Handset manufacturers– global market players
No obvious NFC player, need Innovation partnership22
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Ecosystem: The collaborative business model
Source : Mobey Forum Ltd. + Bent Bentsen, 2008
– Telenor and DnB NOR establishes TSM Nordic AS in April 2008
Josef Noll, “Who owns the SIM?”, 5 June 2007
The secure element:
SIM card
Send service to phone
Send info to recipient
Smartcard interfacesISO/IEC 7816
NFCcommunication
unit
SIM
NFC2SIM
Identity and personalisation
providerAuthentication
and Accessprovider
Serviceaggregator
• SIM is secure element
• controlled environment• over-the-air update• open for applications
• SIM will be owned by user?
• managed by trusted third party
Send key and credentials
Sep 2009, Josef NollMobile Innovations
While waiting for Future SIM and SWP:Alternative Payment Solutions
25
source: Petter Taugbøl, Encap, 2008
Sep 2009, Josef NollMobile Innovations
Mobile BankID Replacing the CodeCard or One Time Password with
an authentication on your mobile
26
27
PayEx Mobile
Java Application download and linked to PayEx kontoMobile phone used as payment channelBoth for Internet and payment terminalsDeduction from PayEx accountSupports Person 2 Person transferSept. 2009: NFC payment
adopted from: John Olav Olsen, PayEx, 2008
Payment and Banking References
Airline booking Mobile payment
Mobile banking
Mobile payment
Mobile banking
source: Svein Therkelsen, mBricks, 2008
Sep 2009, Josef NollMobile Innovations 29
Conclusions “The last time we
were connected by a wire was at birth!” [Motorola]
All services from your mobile
Why not earlier– Business model– Standardisation
Success criteria– known (SMS)– simple
Josef Noll, Sep 2004 Enabling Communication 30
“The fun of being in Norway” - Thanks to Juan Carlos Lopez Calvet from Telenor, Mushfiq, Gyuri from UNIK....
Eurescom colleagues (B3G study, RFID study), Bent Bentsen, Ingjerd Blekeli Spiten (DnBNOR), TrådløsFramtid, enCap,.... and many other companies
