Secure Element

NFC enabled mobile phones are equipped with SE combined with NFC infrastructure like readers and POS terminals. The actors in the NFC infrastructure are the pre requisites but not sufficient for the use of NFC payments. There has to be a secure way to download, install, personalize, upgrade and delete an application in SE without the need to go to the service provider or mobile operator stores. TSM solution provide means of managing the NFC service life cycle OTA by using built upon and emphasizes the role an importance in NFC ecosystem. Mobile device needs to have a trusted Execution environment a place where sensitive data can be stored in secure fashion. It is a piece of hardware called as SE.

NFC Devices

NFC devices are used in contactless payment systems, similar to those used in credit cards electronic ticket smartcards and allow mobile payment to replace and supplement these systems. Specifically, combining NFC enabled devices or NFC mobile phones with RFID tags offers additional benefits when compared to traditional RFID solutions. When an application requires that a device have frequent interaction with tags at numerous process points, the high expense of using traditional handheld RFID readers is cost prohibitive. By replacing handheld readers with NFC-enabled phones at data collection points, the ROI for the application increases. HID Trusted Tag® Services is an example of an application that combines HID Global's patented Near Field Communication (NFC) trusted tag technology and cloud-based authentication platform to add unique and trusted identities to everyday objects that can be read by NFC-enabled mobile devices. This is ideal for establishing proof of presence, digital out of home (DOOH) and electronic visitor verification (EVV) and also serves as a real-world application of the Internet of Things (IoT) that has been discussed in Chapter 1. Some of the examples of NFC based mobile devices is discussed in the chapter.

Mobile Communication Technology

Since their birth in the early seventeenth and all along their different generations, mobile communication networks have crossed important evolutionary phases aiming to define increasingly sophisticated technologies allowing the provision of seamless global roaming, quality of service, and high data rates. Today, numerous technologies are co-existing to provide a unifying set of services. Improvements in telecommunication network infrastructures, evolution of digital technologies and standardization have together made it viable to use existing data networks for multimedia applications. This clearly reverses the trend of the past where networks were dedicated to a specific application. Integration of all types of information voice, data, video and image into a single network infrastructure is known as network convergence. The end result of this convergence is commonly referred to as the next-generation network (NGN), which, conceptually anyway, combines high-speed with the best features of each network. This chapter gives the details about the details of mobile communication technology.

NFC Payment Architecture

A main challenge in NFC payment is to make it possible for different actors to interact and coordinate with one another for proper functioning. This requires meeting the standards given by standard organizations which includes infrastructure for networks, different hardware's, software's, communication protocols. Challenges include trust, security, commitment and interoperability. This chapter gives the insight about the working and functioning among different actors making it convenient to understand the entire concept. From the users point of view mobile devices play the role of credit card. Mobile device manufacturers include only NFC chip and the antenna to their mobile device. SE is stored to SIM or UICC. MIDlet on customer's mobile device simulates contactless smart card mode so that POS terminal manufacturers need not to make new terminals equipped with NFC chip reader. Bank authorities need to have added responsibilities of authenticating. Since the architecture has MNO's and bank as important players both get multi-application NFC SE stored in SIM or UICC.

Mobile Handset Technology

Wireless phones which receive their signals from towers. A cell is typically the area (several miles) around a tower in which a signal can be received. Cell phones provide array of functions. Depending on the type of mobile phone we can store contact information, keep track of appointments and set reminders, Use the built-in calculator for simple math, send or receive e-mail, get information (news, entertainment, stock quotes) from the internet, play games, watch TV, send text messages, integrate other devices such as PDAs, MP3 players and GPS receivers. A cell phone is a full-duplex device meaning that both people on the call can talk at once. Division of a city into small cells allows extensive frequency reuse across a city, so that millions of people can use cell phones simultaneously. Cell phones operate within cells, and they can switch cells as they move around. Cells give cell phones incredible range. Someone using a cell phone can drive hundreds of miles and maintain a conversation the entire time because of the cellular approach. Each cell has a base station that consists of a tower and a small building containing the radio equipment. The cell phones have evolved from Analog to Digital which has been described in the previous chapter. This chapter describes the two main standards for mobile phones i.e. GSM and WAP.

NFC Payments Overview

NFC payment is the latest mobile payment technology for cashless transactions. Mobile payment is an application of mobile commerce which facilitates mobile commerce transactions by providing the mobile customer with a convenient means to pay. Many mobile payment methods have been proposed and implemented like user friendly, customer centric, merchant centric where security concerns are highly addressed. This chapter discusses the evolution of mobile payments that describes different technologies like SET, Barcode, Biometrics and also Near Field Communications that provides a platform for many applications for peer to peer transactions and other security features where confidentiality and trust are main concerns. Near Field Communication (NFC) provides means to close-range contactless identification and communications for mobile phones and other devices Also, use of NFC for short range communication allows the possible integration with existing Point-of-Sale equipment and the payment process from the customers and merchants perspective.