GSMA Recommends NFC/SWP Functionality in Mobile Handsets
November 26, 2008 // Published as a news service by IHS
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The GSM Association (GSMA) recommended that near field communication (NFC) functionality, including the standardized single wire protocol (SWP) interface, be built into commercially available mobile handsets from mid-2009.
The GSMA board supports the need for the European Telecommunications Standards Institute (ETSI) endorsed SWP standard to provide the interface between the universal integrated circuit card (UICC) and the embedded NFC chipset within the handset.
A series of operator trials, under the GSMA's pay-buy-mobile initiative, demonstrated that consumers can use UICC-based NFC handsets to pay for goods and services, said GSMA.
This call for handsets is supported by recent operator trial results, which indicate a growing consumer demand for mobile payment services, according to GSMA.
Trials are underway across eight countries involving nine mobile operators as part of the GSMA's pay-buy-mobile initiative. Further pilots are planned across 14 countries by 15 mobile operators.
In a trial of more than 200 users in Taiwan, FarEasTone found that 90% of people reacted positively toward this new service. Also, 80% of people were satisfied that the service is secure and 40% said they would switch their monthly spending to a mobile credit card service, said GSMA.
Seven banks and four mobile operators - including Orange and SFR - involved in the Payez Mobile trial in France announced the results of trials conducted with almost 500 sales outlets and nearly 1,000 trialists.
More than 90% of trialists said they found contactless mobile payment convenient, fast and easy to use, said GSMA. In addition, 94% declared that they would recommend it to their friends and family.
More than 80% of merchants said they appreciated the speed and appeal of mobile contactless payment, said GSMA. Equally, in Korea, SKT and KTF found that m-transportation was very popular with users and this is likely to translate to other mobile payment services, said GSMA.
Approximately 450,000 users of the t-money service adopted the service because it is compatible with existing readers, said GSMA.
According to KTF's survey, 85% of m-transportation users had "very high" satisfaction levels, said GSMA. Also, 85% of users believe that using a contactless mobile phone is more convenient than using money for public transportation and they would continue to use the mobile service.
In July, the GSMA, on behalf of operators, issued a device requirement document to vendors and suppliers in the pay-buy-mobile ecosystem. Thirty-seven players provided feedback, which will help determine core requirements for any SWP/NFC device, said GSMA.
Source: GSM Association (GSMA).