NFC. control time RFID. copy protection. Barcode. Security. App. Quick control. NFC eco system ISO Secure Element. Near Field Communication

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1 Quick control Casual users App mobile ticketing NFC Smartphone OPTIMOS Investment protection RFID control time Ticket issuing mobile network Data transfer Ticket purchase existing infrastructure Security Secure Element subscription customers Public transport customer-friendly Barcode Near Field Communication copy protection Terminal NFC eco system Integration of NFC smartphones into public transport

2 WHAT S NFC ABOUT? NFC is an abbreviation for Near-Field Communication and a contactless transfer standard for data. Already today more than 50 % of all smartphones are equipped with an NFC interface. Due to the rapid development of smartphones experts believe that 90 % of the entire terminal equipment will be NFC-compatible in Germany by Thanks to the NFC function the smartphone can behave like e.g. a chip-card. Thus, an (((eticket stored on the smartphone can be inspected without having to scan in a barcode, open an app or switch on the smartphone, which means that mobile tickets can be inspected quickly, reliably and unmistakably. No further ID media have to be checked. Consequently, the NFC technology is faster and more secure than today s 2D barcode for ticket issuing

3 WHAT IS NFC? NFC is a technology for the contactless transfer of data over short distances (a few centimetres). The reader, e.g. a check terminal, permanently sets up an electromagnetic field and inquires whether an NFC chip is within reach. As soon as a NFC chip is held towards the contact surface of the terminal, it is activated by the electromagnetic field and the exchange of data begins. This NFC chip can be fitted in e.g. a chip-card, a watch, a bracelet or a smartphone. To accept the exchange of data, the user has to be active. In concrete terms: The smartphone is held over the contact surface of the terminal. It is not necessary to login as in case of WLAN or to couple as in case of Bluetooth. transfer standards applied by public transport companies and public transport associations that use the infrastructure of (((eticket Deutschland are in the same RFID environment. In Germany and in nearly all other countries with e-ticket systems data are transferred between the chip-card and the terminal in accordance with the open near-field communication standard specified in. As the NFC standard has been harmonised with the ISO standard, future NFC-enabled smartphones can be applied for the existing (((eticket Deutschland systems. A passenger holds his/her NFC-enabled smartphone towards a standard check terminal and the ticket data are read out by the NFC-enabled smartphone. NFC belongs to the RFID standard series, which specifies the various contactless mobile transmission paths. The 04 05

4 WHO BENEFITS FROM NFC? Meanwhile, nearly all big public transport companies/associations in Germany have introduced mobile ticketing systems so that their customers can easily access the public transport systems. Usually, the passengers receive information about the tariffs and timetables as well as suitable tickets via these apps. This procedure is quick and simple, and the passenger no longer has to wait at a ticket vending machine with suitable cash. It is especially switched on and its battery has to be sufficiently charged. Moreover, the display has to be unbanned and the app has to be activated. The 2D barcode does not have copy protection, which means that the ticket can be copied, and the passenger therefore also has to show an additional ID medium that clearly identifies him/her as the correct user of the ticket. Consequently, it takes a relatively long time to attractive to casual users and passengers from external tariff regions. Moreover, it is easy to buy season and subscription tickets in the web-shop of the public transport company/association and to store them as mobile tickets on e.g. the smartphone. At present, a mobile ticket is transferred to the passenger s smartphone in a 2D barcode format. However, 2D barcodes have many disadvantages, e.g. when the ticket has to be inspected. Thus, the mobile phone has to be inspect the ticket properly. Moreover, additional scanners are needed for barcode tickets if there are check-in/ check-out systems or terminals for supervised boarding at the front of a vehicle. The customers increased acceptance and use of mobile ticketing mean that the 2D barcode now touches its limits due to the time-consuming inspection of the mobile tickets. Thus, the change to NFC-based mobile ticketing is interesting to all public transport companies/ associations that intend to establish mobile ticketing as a permanent distribution channel

5 HOW DOES NFC-TICKETING FUNCTION? An encoded NFC-based mobile ticket is stored in the It does not matter whether the ticket is purchased in an the terminal or the check device is so strong that the association and the providers of the mobile networks. smartphone just as an (((eticket is stored on the chip- app or a web-shop or whether the smartphone is used NFC chip is activated and the stored (((eticket accessed. A passenger installs the app of a public transport com- card today. The access to several components in the like a chip-card for the purchase of a ticket at a ticket To be able to transfer and store an NFC-based mobile pany/association on his/her NFC-enabled smartphone. smartphone has to be allowed for this purpose. To make vending machine or a terminal. When the passenger ticket, a central NFC background system is needed, The central NFC background system checks whether the the NFC-based mobile ticket electronically secure, the holds his/her NFC-enabled smartphone towards a ter- which exchanges information between the mobile customer s smartphone is NFC-compatible, which mobile VDV Core Application has to be stored in a secure ele- minal or a check device, this device accesses the secure ticketing system of the public transport company/ network provider he/she uses and which secure element ment of the smartphone, e.g. on the SIM card or a fixed element in the smartphone via the NFC chip and reads can be accessed. Thereafter, the VDV Core Application is chip. The single driving authorisations and the necessary authentication keys are stored there. out the valid ticket. If the smartphone is in its low-battery modus or switched off, the field strength set up by SIM card 21 installed in the background and the authentication keys are stored in the smartphone. Now the customer s smart- >300 Transport companies/ associations central NFC background system virtual telecomminication companies phone is a VDV Core Application user medium. VDV-KA-Infrastruktur und Sicherheitsmanagement esim & embedded SE manufacturer devices & operating systems 08 09

6 HOW CAN I JOIN? To make NFC-based mobile tickets available to the German market, an open NFC eco system has to be created. To be able to provide manufacturer- and network-independent NFC services, it is the intention to standardise the procedures and to set up the necessary systems and mobile identification management the security management. This open NFC eco system is developed in the OPTIMOS project headed by VDV eticket Service. OPTIMOS is promoted by the German Federal Ministry for Economic Affairs and Energy (BMWi) and realised together with 18 other organisations and companies from the transport sector, smartphone manufacturers and telecommunications companies. Use cases are defined and tested in this project in the form of examples from the public transport sector. Within the scope of the OPTIMOS project the central NFC background system is to be erected, which is going to transfer the driving authorisations to the secure part of the smartphone. Further project findings have already web shop via NFC mobile device creating and managing customer account FIDO* medium e.g. via NFC mobile device registration web shop web shop via NFC mobile device been integrated into the international NFC standardisation and will lead to a harmonised NFC standard, which ments in the existing (((eticket infrastructure. Thus, choosing and paying of products is to be applied in new smartphones from These PT (public transport) ready phones can then be used existing terminals can easily exchange data with NFCenabled smartphones of both the next generation and worldwide as a ticket medium for public transport. Thus, later generations. As soon as OPTIMOS goes live by the more about OPTIMOS: use of products OPTIMOS the NFC is the only transfer standard that is standardised worldwide and further developed by both the public transport sector and the mobile communications sector. end of 2018, public transport companies/associations can be connected to the central NFC ticket background system and change their mobile ticket issuing from bar- *FIDO is an open and license free standard for quick online authentification download of products NFC mobile devices or VDV-CA card as custumer medium The joint, harmonised NFC standard protects invest- code to NFC

7 VDV eticket service ia a partner and service provider for all transport providers and transport authorities that use (((eticket Deutschland. It is responsible for the VDV Core Application, which has been introduced as the German standard for electronic fare management. Alongside operating the central background systems and carrying out security management, VDV eticket Service provides specialist seminars and consulting on all (((eticket Deutschland topics. As a directing company, VDV eticket Service is supporting the VDV smartphone strategy with the introduction of IPSI. In addition to this, it is coordinating the standardisation and technical preparations being made for NFC in the German public transport network. VDV eticket Service GmbH & Co. KG Im Mediapark 8a D Köln Tel: Fax: info@eticket-deutschland.de