- Lessons Learnt in Asia. Dr. Jack C. Pan Watchdata Technologies

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1 Mobile Proximity Payment - Lessons Learnt in Asia 1 Dr. Jack C. Pan Watchdata Technologies

2 About Watchdata Established in 1994 Top 5 smart card vendor worldwide TimeCOS - First COS developed in China Headquarter in Beijing, China International headquarter in Singapore Over 1,000 employees Customers in over 40 countries 2

3 Increased Global Presence Our Global l GGloooMarket Presence Watchdata office Home Market International Market Brazil 3 3

4 Product Portfolios 1 Telecom 2 Financial and Retail 3 5 SIM,, USIM, UIM SIMpass OTA Platform SIManagement g Utilities Water Metering Electricity Metering Gas Metering Transportation Public Transportation: CEPAS, CALYPSO Multi-app cards Expressway Toll Collection 4 EMV - Visa paywave & MasterCard PayPass Internet banking token Reader Government and ID 4 Social Security Driver s s License Personal ID E-Government Taxation SCOSTA Access Control 4

5 NFC Market Outlook Mobile payment market: Year 2009 NFC-SWP supported handsets to start from 2009 Optimistic forecast: 30% handsets will support NFC-SWP by 2012 Around 80% of handsets today can be supported by SIMpass Year 2012 SIMpass will continue to remain relevant for majority of phones SIMpass NFC-SWP non-nfc SIMpass NFC-SWP non-nfc 5

6 SIMpass Introduction Dual-interface (U)SIM card Contact Interface (U)SIM: Telecom Application RF Interface Contactless: Non-Telecom Applications Extends (U)SIM/UIM card with functions of contactless payment card 6

7 System Architecture Future proof SWP solution Near-term proof NFC solution for existing markets APDU APDU APDU 7

8 Two Forms of SIMpass 1. SIMpass with antenna supports Majority of non-nfc phones (excl. metal cover) in the market Flexibility in choosing favorite phones Front Side 2. SIMpass without antenna supports NFC phones from leading phone manufacturers Custom-made phones with built-in antenna (mostly in Korea & China) 8

9 Near-term & Future Proof One SIMpass solution for two worlds: Non-NFC & NFC-SWP SIMpass for over 80% of handsets today SIMpass and NFC-SWP coexist Compensate and inspire each other 9

10 SIMpass for China Mobile & China Unicom China Mobile with Guang Zhou Subway operator & China Unicom with Chongqing Bus operator Plus taxi, ticketing & entertainment Up to 50K issued 10

11 SIMpass for True Move, Thailand Commercially launched in Bangkok since 2008 Group operators with its own e-purse OTA top-up thru e-wallet, bank account or credit card Over 100K units issued thus far 11

12 SIMpass in Singapore Transportation in Singapore (CEPAS): Watchdata the first certified card supplier More than 10 Millions cards issued Critical 150ms transaction time Transportation ti & retail payment 12

13 SIMpass in Singapore (Cont.) First 3-in-1, Super-combi Card in Singapore: Launched with DBS & Visa in August 2009 Featuring CEPAS, VSDC & Visa paywave SIMpass launches planned with both CEPAS & payment brand s contactless tl functions 13

14 Latest Progress in Asia One of the top industry players in China planned with SIMpass using custom-made made phones Hundreds of thousand of cards / phones planned for 2010 OTA top-up p for e-purse and other phone features Similar programs under consideration for Korea 14

15 Lessons Learnt in Asia Pacific NFC bridging solutions being considered while waiting for ubiquity of NFC phones Mobile operators leading the charge with own e- Purse payment features Transport function deemed killer app to enable broader mobile payment adoption Custom-made handsets showing promise for markets where large MNOs have muscles to dictate Emerging signs of willingness amongst banks, transport operators and mobile operators to collaborate 15

16 16

17 Thank You 17

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