From 7 to 9 December 2010, CARTES & IDentification, the global event for digital security and smart technologies, will present the latest advances in NFC applications and contactless. This is a unique opportunity – via various conferences, exhibitors’ stands and special events – to get acquainted with this technology, and above all understand its challenges and development.

Some 320 million contactless cards with microcontrollers are set to be delivered in 2010, a 20% increase on the previous year’s figure. Growth should be even stronger in 2011, as NFC (Near Field Communication) applications take off at last.

The number of contactless cards with microcontrollers delivered globally this year reveals a strong and lasting trend for the smart card market, with annual growth 10 points higher than overall growth for cards with microcontrollers (20.75% against 10.5% for contact and contactless cards combined). These cards now account for between 6 and 7% of all cards delivered throughout the world, which should reach a figure of 5 billion units. It is estimated that contactless’s share will rapidly exceed the 10% level.

Contactless payment is developing in Europe and Asia

The significant development in the roll-out of contactless cards which began three or four years ago in the United States is now continuing in Europe and Asia. Visa Europe announced that the number of contactless Visa cards in circulation in Great Britain alone was set to exceed 12 million before the end of the year. In Turkey, one of Europe’s most dynamic countries in terms of payment cards, Garanti Bank has become one of Europe’s top contactless card issuers with just over a million cards in circulation.

Globally, the contactless payment card market is expected to develop in 25% steps this year, and that of contactless identity cards and passports in 20% steps.

e-passports and electronic identity cards

E-passports are the other major application for contactless. 250 million will have been issued in almost 75 countries by the end of the year, six years after the first biometric e-passport complying with ICAO specifications (International Civil Aviation Organization) was launched. Some one hundred countries will be starting to issue the documents in the very near future.

These markets should experience even stronger growth next year. The German national identity card designed entirely for non-contact applications will be launched in early November, and issued to 60 million people.

France may follow suit as early as next year with a slightly different project, combining contact and contactless applications, but the legislative phase which would confirm its launch has not been fixed yet. Turkey, meanwhile, also expects to begin rolling out its 70 million identity cards which will combine contact and contactless applications, but will also include identity applications and EMV payment applications for the first time in Europe..

NFC on mobiles, preparing for a global big bang

NXP, one of the main suppliers of NFC circuits for mobiles, again confirmed recently the forecasts issued by a large number of consultancies who expect 785 million NFC mobiles to be in circulation in 5 years’ time. NFC telephones are as yet rare, but the card reader infrastructure is gradually being installed thanks to the success of contactless cards and as the first contactless national identity cards are launched, but also in line with the constant progress in transport applications where compatibility with NFC SIM cards poses less problems.

The questions surrounding value sharing, economic models and customer relations are still at the heart of negotiations between the various players involved in the future ecosystem. In Turkey, where Europe’s first commercial NFC applications have been installed (payment, ticketing and loyalty), Garanti Bank and one of the local operators, (Avea), have been able to demonstrate that it is possible to come to an agreement. In Holland, multi-lateral agreements have been signed between banks and telecoms operators, but the first commercial roll-outs are planned for 2012. In France, an on-the-ground demonstration of technical and commercial interoperability has been organised in Nice. Finally, in the United States, the climate is much less consensual, with three of the four major telecommunications operators having created a joint-venture company with Discover and Barclays to prepare the launch of NFC mobile services, which could catch the American banks off guard, as well as Visa and MasterCard, who were unable to come to an agreement with the telecoms operators concerning the launch of joint NFC services.

Contactless in all its forms

Experts from around the world will present the latest advances and their vision of the sector from 7 to 9 December 2010 at Paris Nord Villepinte, in a completely new conference cycle focusing on this field.

1.     MOBILE Money Services (Tuesday 7 December 2010)

After a slower start than initially anticipated by its promoters, Mobile Payment seems to have found a new breath. Conditions for its broad deployment are becoming more concrete each day. A panel of selected experts will explain what is to be expected from all this, in the day-to-day life.

2.    Round table on mobile contactless (Tuesday 7 December 2010, 11am to 12.30pm)

• Jean-Michel Gadrat, President, Contactless Services Mobile Forum, France
• Brigitte Bourgoin, President, French Mobile Contactless Association, France
• Laurent Jullien, Vice-President, European Mobile Payments Association, France
• Yves Krattinger, President of the “Suburban and Intermodal Facilities” Commission, Transport Management Authorities Grouping, France
• Florence Barale, Local Councillor Responsible for Economic Development, in charge of the “Nice, mobile contactless city”, Nice City Council, France
• Ergosum Group, France

3.     Contactless Payments  (Wednesday 8 December 2010)

Ambition of contactless payment is from now on massive roll-out during the next 5 years for transactions below Euros 20. Contactless payment via the NFC technology promises new services and saving time for users. The focus is on security, clients experience and business case but one major challenge remains to coordinate the acquiring roll-out beside the issuing advanced activities.

4.     NFC & Contactless Applications (Thursday 9 December 2010)

So far, 2010 appears to have been a good year for the take up and deployment of NFC and contactless services across the world. It has also been a year where players have attempted to deploy multiple form factors. The conference will explore critical success factors for the success of NFC and contactless based around 3 pivotal criterias of customer acceptance, ease of deployment and viable business models.

 

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