CSCIP Module 7

Module 4: Smart Card Usage Models – Mobile and NFC

Smart Card Alliance Certified Smart Card Industry Professional Accreditation Program

About the Smart Card Alliance

The Smart Card Alliance is a not-for-profit, multi-industry association working to stimulate the understanding, adoption, use and widespread application of smart card technology. Through specific projects such as education programs, market research, advocacy, industry relations and open forums, the Alliance keeps its members connected to industry leaders and innovative thought. The Alliance is the single industry voice for smart cards, leading industry discussion on the impact and value of smart cards in the U.S. and Latin America. For more information please visit http://www.smartcardalliance.org.

Important note: The CSCIP training modules are only available to LEAP members who have applied and paid for CSCIP certification. The modules are for CSCIP applicants ONLY for use in preparing for the CSCIP exam. These documents may be downloaded and printed by the CSCIP applicant. Further reproduction or distribution of these modules in any form is forbidden.

Copyright © 2015 Smart Card Alliance, Inc. All rights reserved. Reproduction or distribution of this publication in any form is forbidden without prior permission from the Smart Card Alliance. The Smart Card Alliance has used best efforts to ensure, but cannot guarantee, that the information described in this report is accurate as of the publication date. The Smart Card Alliance disclaims all warranties as to the accuracy, completeness or adequacy of information in this report.

Table of Contents 1 INTRODUCTION ...... 5 2 SMART CARD DRIVERS AND BENEFITS ...... 6 2.1 STRONG SECURITY ...... 6 2.2 MULTIPLE APPLICATIONS ...... 6 2.3 CONSUMER AND MOBILE OPERATOR CONVENIENCE ...... 6 2.4 NEW REVENUE OPPORTUNITIES AND BUSINESS MODELS ...... 7 3 MOBILE TELECOMMUNICATIONS ...... 8 3.1 SIMS AND MOBILE NETWORKS...... 8 3.2 USAGE MODEL FOR SIMS AND UICCS FOR MOBILE DEVICES ...... 9 3.3 TECHNOLOGY ...... 12 4 UICCS ...... 14 4.1 UICCS AND MOBILE NETWORKS ...... 14 4.2 USAGE MODEL FOR MOBILE DEVICES ...... 14 4.3 TECHNOLOGY ...... 15 5 NEAR FIELD COMMUNICATION (NFC) ...... 16 5.1 NFC APPLICATIONS ...... 16 5.1.1 Transit and Ticketing ...... 17 5.1.2 Payment ...... 17 5.1.3 Advertising, Promotions and Information Access ...... 18 5.1.4 Connectivity ...... 18 5.1.5 Maximizing other Wireless Platforms ...... 18 5.1.6 A Day in the Life of an NFC Mobile Phone ...... 19 5.2 NFC TECHNOLOGY ...... 21 5.3 NFC MOBILE ECOSYSTEM AND CONVERGENCE WITH CONTACTLESS CARD TECHNOLOGY ...... 23 5.3.1 Key Functionalities ...... 24 5.3.2 Ecosystem Players...... 24 5.3.3 Key Factors in Building a Successful NFC Mobile Ecosystem ...... 25 5.3.4 Conclusion ...... 26 5.4 THE NFC FORUM ...... 27 5.5 NFC DEPLOYMENT STATUS ...... 27 5.6 SECURITY AND NFC APPLICATIONS IN CARD EMULATION MODE ...... 28 5.6.1 Secure Element Enabled Card Emulation ...... 29 5.6.2 Host Card Emulation ...... 34 5.6.3 Application Identifier Routing for SE and HCE Implementations ...... 35 5.6.4 Security Trade-Offs ...... 35 5.6.5 Summary ...... 38 5.7 STATUS OF NFC TECHNOLOGY ...... 38 5.7.1 Standards ...... 39 5.7.2 Certification ...... 40 5.7.3 NFC Device Availability ...... 40 6 SAMPLE SMART CARD MOBILE AND NFC MODELS ...... 42 6.1 GSM AND SUBSCRIBER PRIVACY ...... 42 6.2 NFC-ENABLED MOBILE MARKETING ...... 43 6.2.1 NFC-Enabled Mobile Marketing Participants and Process ...... 43 6.2.2 Security and Mobile Marketing ...... 44 7 RELEVANT STANDARDS AND SPECIFICATIONS ...... 46

7.1 STANDARDS RELEVANT TO SMART CARD PHYSICAL CHARACTERISTICS ...... 46 7.2 STANDARDS AND SPECIFICATIONS RELEVANT TO TECHNOLOGIES RELATED TO THE CARD INTERFACE ...... 46 7.3 STANDARDS AND SPECIFICATIONS RELEVANT TO THE CARD COMMANDS AND APPLICATION DATA STRUCTURES ...... 46 7.4 STANDARDS AND SPECIFICATIONS RELEVANT TO ISSUERS OR SPECIFIC INDUSTRY SECTORS ...... 47 8 REFERENCES ...... 48 9 ACKNOWLEDGEMENTS ...... 50

1 Introduction Smart cards are used extensively in the telecommunications industry worldwide. Eurosmart estimated that 5.1 billion microcontroller smart cards shipped globally for telecommunications applications in 2014. Eurosmart also estimated that 350 million NFC secure elements shipped in 2014, with growth forecast to 600 million in 2015. This module describes how smart cards are used in mobile and Near Field Communication (NFC) applications. After reviewing this module, CSCIP applicants should be able to answer the following questions:  What are the benefits that smart card technology delivers for telecommunications applications?  What are SIMs and UICCs and how are they used in mobile devices?  How are SIMs and UICCs deployed in the market?  How do SIMs protect mobile subscriber personal information?  What is NFC technology and what is its status?  What applications are using NFC? How do NFC applications protect sensitive information?  What are the differences between NFC implementations using secure elements and Host Card Emulation (HCE)?

2 Smart Card Drivers and Benefits Smart cards are used extensively in the telecommunications industry worldwide. According to Eurosmart, 5.1 billion microcontroller smart cards shipped globally for telecommunications applications in 2014, with 5.25 billion microcontroller smart cards forecasted to ship in 2015.1 Smart cards are used in two primary telecommunications applications – as prepaid (stored value memory cards) telephone cards and as the microprocessor smart card-based Subscriber Identity Module (SIM) or Universal Integrated Circuit Card (UICC) in mobile devices. Eurosmart also forecasts strong growth in secure NFC devices, with 350 million NFC secure elements shipping in 2014, growing to 600 million in 2015. This section summarizes the drivers for microprocessor smart card technology being used for mobile phones; benefits and drivers for memory smart cards used as stored value cards are discussed in Module 5. Additional information on benefits for specific markets and applications are included in the sections that follow. 2.1 Strong Security Smart cards used as SIMs in mobile phones provide a high level of security. Mobile network operators (MNOs) take advantage of the smart card to:  Securely store subscriber identity data  Securely store MNO data  Securely store subscriber phone books  Authenticate subscribers to the MNO network  Encrypt information communicated over the MNO network  Support conditional access systems and digital rights management to enable MNOs to deliver content securely to consumers NFC applications also use smart card technology as the “secure element” to securely store applications and data and to enable secure transactions.

2.2 Multiple Applications As telecommunications networks evolve to next generation technologies, smart card technology also provides the security functions necessary to support multiple applications. The need for a more robust multi-application capability extends beyond phone and data service, as operators work with stakeholders in other sectors like banking and entertainment to bring new services like mobile payment, movie broadcasting and NFC applications to the mobile phone.

2.3 Consumer and Mobile Operator Convenience Smart card technology provides convenience both for consumers and MNOs. SIMs make it possible for consumers to switch mobile phones more easily and for operators to support more handsets and get them to market more quickly. SIMs have the capability to store phone numbers and contacts. SIMs also enable global roaming, provide data backup options, enable rich multimedia branding of handsets for operators and can provide strong digital rights management for content providers. The fact that SIMs can be distributed independently from the mobile phone has made them ideal for enabling MNOs to offer prepaid subscription services, which represent the majority of mobile phone subscriptions worldwide.

1 Eurosmart, ”Providing Trust and Security Is Key for a Successful Mobile Lifestyle in the Hyperconnected World of 2020, Nov. 4, 2014, http://www.eurosmart.com/publications/market-overview.

2.4 New Revenue Opportunities and Business Models NFC technology enables mobile operators to offer new services and to partner with other organizations to deploy applications that take advantage of proximity RF technology built into the mobile phone and used at physical locations.

3 Mobile Telecommunications A Subscriber Identity Module (SIM) card is a type of microprocessor-based smart card used in mobile phones and other devices. A SIM identifies and authenticates a subscriber to a wireless mobile phone network. Unless blocked by the operator, a subscriber can move his phone service to a new phone just by physically moving the SIM. SIMs also facilitate global roaming, providing subscribers with access to voice, data and other services when traveling in other countries. In addition, SIMs can store contact information and phone numbers, and can be used for other applications. The Universal Integrated Circuit Card (UICC) is a new generation of SIM technology optimized for newer wireless network standards. The term SIM is widely used in the industry and especially with consumers to mean both SIMs and UICCs, although they are different technologies. The UICC offers many enhanced capabilities, including better support for multiple applications and IP addressing. Section 4 discusses UICCs in more detail. SIMs and UICCs are the smart card industry’s highest volume products for both units and revenue. According to Eurosmart, an association of smart card manufacturers, microprocessor card shipments worldwide for the telecom sector in 2014 was 5.1 billion units. This represented 63% of the 8.04 billion total number of microprocessor cards shipped for all sectors. Telecom unit volume was over 2.5 times that of the second largest sector, banking, which had 1.95 billion units shipped in 2014.2

3.1 SIMs and Mobile Networks SIMs and the newer UICCs are used in wireless networks based on several different standards, but the fact that they are mandatory in GSM (Global System for Mobile communications) networks has been a very significant market driver. GSM and its offshoots are the world’s leading wireless network standards.GPRS (General Packet Radio Service) is a very widely deployed wireless data service, available now with most GSM networks. Each GSM phone contains a SIM to identify and authenticate the phone, voice and data services on the network. SIMs support different calling plans ranging from subscriptions to prepaid plans. In the U.S. and Canada, GSM-based operators include AT&T, T-Mobile and Rogers Wireless. Mobile devices used in these networks all have a SIM or UICC inside. Another important wireless network standard is CDMA, although the majority of CDMA-based handsets do not include a SIM. In CDMA handsets, the functions of subscriber and phone identity and authentication are incorporated into the electronics of the handset. In some cases, operators do use SIMs in CDMA-based devices. A SIM in a CDMA handset is called a Removable User Identity Module (R-UIM). Some satellite phone networks also use SIM cards, including Iridium, Thuraya and Inmarsat's BGAN. All mobile networks are evolving to newer and faster technologies for transmitting mobile voice and data services. This evolution is very important to the smart card industry, because the wireless network standards that build on GSM will also make the use of SIMs or UICCs mandatory. In order to develop a unified evolution direction for GSM-based network operators, several telecommunications standards bodies formed the 3rd Generation Partnership Project (3GPP) in 1998. 3GPP defined a migration path for third generation radio technologies under the umbrella name of Universal Mobile Telecommunications System (UMTS). This is also referred to as 3GSM, or simply 3G.

2 Eurosmart,”Providing Trust and Security Is Key for a Successful Mobile Lifestyle in the Hyperconnected World of 2020, Nov. 4, 2014, http://www.eurosmart.com/publications/market-overview.

In common usage, many people refer to all of these network technologies as GSM. More precisely, GSM refers to the whole mobile system for 2G, the second generation of networks. The correct term for 3G networks in this technology family is UMTS.3 UMTS includes two underlying radio technology specifications that are both widely used, Wideband Code Division Multiple Access (W-CDMA) and High-Speed Packet Access (HSPA). UMTS networks in many countries have been upgraded with the faster HSPA, sometimes known as 3.5G. The next evolutionary step up from UMTS is Long Term Evolution (LTE). Sometimes operators that are implementing LTE refer to it as 4G. LTE is backwards compatible with GSM and HSPA and delivers very fast data speeds of up to 100 Mb/s downlink and 50 Mb/s uplink. 4 LTE is not only for operators already following the GSM migration path, but also for others, including some running CDMA networks today. Internationally, GSM is already the dominant standard, so as these operators upgrade their networks along this migration path to LTE, they will continue to use SIMs/UICCs in all of their mobile devices. Of particular importance to the U.S. smart card industry is that Verizon Wireless, the largest wireless operator in the U.S. and a CDMA-based network, has migrated to LTE. The wireless network technology roadmap, and the fact that Verizon has migrated to LTE, is extremely significant for the U.S. smart card industry, because it means that virtually all mobile phones and smart phones in the United States will eventually contain a SIM/UICC. The significance of LTE and higher bandwidth to consumers is the availability of more services (e.g., video calling, mobile TV, VoIP).

3.2 Usage Model for SIMs and UICCs for Mobile Devices SIMs are typically manufactured as a full credit card-sized card, but the actual SIM module that is put into the mobile phone is a small part of the card about the size of a postage stamp. The area around the SIM is notched so that only a few plastics links connect the SIM module to the card body and it can easily be broken off. While there are several form factors, the typical module has a width of 25 mm, a height of 15 mm, and a thickness of .76 mm.5 The SIM is installed in a connector in the phone behind the battery. Figure 1 shows an example SIM.

Figure 1. SIM cards are produced as full cards with the plastic around the contact notched. It can easily be broken off to the small size pictured here, which is what is inserted into the mobile phone or smart phone.

A SIM provides several advantages. First and foremost, as a microprocessor smart card, it provides a high level of security based on mutual authentication using challenge/response, random number and session encryption techniques. Another very significant advantage of SIMs is that they can be produced, personalized and distributed independently from the mobile phone. This has been particularly important for the development of the worldwide market. In addition, SIMs provide a phone-agnostic platform for deploying simple, but profitable, text menu-based services using the SIM tool kit.

3 3GPP, Keywords: UTMS, http://www.3gpp.org/article/umts 4 GSM Association, GSM Technology: LTE, http://gsmworld.com/technology/lte.htm#nav-6 5 Reference Material for Assessing Forensic SIM Tools, Wayne A. Jansen, Aurelien Delaitre, National Institute of Standards and Technology, Paper No. ICCST 2007-74, http://csrc.nist.gov/groups/SNS/mobile_security/documents/mobile_forensics/Reference%20Mat-final-a.pdf

In addition, SIMs make it possible for consumers to switch mobile phones more easily and for operators to support more handsets and get them to market more quickly. SIMs enable global roaming, provide data backup options, enable rich multimedia branding of handsets for operators and can provide strong digital rights management for content providers. Each of these advantages is discussed in more detail below. SIMs are deployed in the market in different ways in different markets, but fall into two primary models depending on how the customer pays for their mobile phone service, by subscription or prepaid. In the United States, most mobile phone owners have service subscriptions based on a monthly charge for a certain number of calling minutes and amount of data services, such as text messaging or Web access. Consumers usually buy their mobile phones through retail outlets owned and operated by the mobile network operator (MNO). The cost of the mobile phone is typically subsidized by the operator, often with a very significant discount, in exchange for the subscriber signing a one or two year service agreement. The SIM is provided with the phone at the store. The other market model is that the phone and the wireless service are sold separately and move through the same retail distribution channels as other consumer electronic products. This can be either a subscription plan or a prepaid plan. Since many prepaid cards are disposable, the actual number of cards shipped annually by the industry is actually higher than the number of new GSM family mobile phones that are sold. In fact, the GSM Association credits the SIM for expanding the mobile world. The option of a prepaid card for wireless services eliminated previous barriers such as waiting lists, registration, credit checks, deposits and high initial access costs that prevented low income people from acquiring and using mobile phones. It replaced a monthly bill, which can be a worry for many consumers with a pay-as-you-go plan. Consumers can purchase phones at a low price, or even use re-conditioned or “hand me down” phones. Small denomination top-ups allow low income people to receive credit from friends and family. Free “call- me” text messages with caller paid airtime plans enable reverse-charge calling. All of these factors are now implemented in most developing countries. Technological developments, economies of scale and market forces have brought the price of handsets down significantly to less than 15% of the total cost to subscribers.6 SIM-based phones can be open (unlocked) or closed (locked). The difference is that an open phone works with any network operator's SIM cards. A closed phone does not allow you to use any phone service other than that of the operator who sold you the phone.

6 Universal Access, GSM Association report, http://gsmworld.com/documents/universal_access_full_report.pdf

Figure 2. How Consumers Use SIMs to Upgrade Phones (Source: Gemalto) Consumers have a greater choice of phones and have more flexibility in buying mobile phone service with open phones; however, consumers in the U.S. for example, where most GSM phones are locked, benefit from phone subsidies that greatly reduce the price of new mobile phones or smartphones. SIMs make it easy to switch to a new phone, as explained in the Figure 2 above. A user’s SIM contains all the information required to activate the new phone. SIMs have the capability to store phone numbers and contacts. In most cases, the default is to store phone numbers and contacts in the memory of the handset. Consumers usually do have the option to change their settings so that a copy of the phonebook is kept in the SIM. The advantage of this is that if the phone stops working, the SIM can be removed and the contacts can be moved into a new phone or read from the SIM.

For the operator, an important advantage of the SIM is that it enables operators to support more handsets and get them to market more quickly. Handsets that use embedded electronics for identity and authentication require handset makers to program specific handset models with the look and feel defined by the operator. With a SIM, an operator can develop their branding and user interface once on the SIM. When the SIM is inserted into a phone, the SIM personalizes the phone to the operator’s branding. This advantage of the SIM card also gave rise to a new class of wireless service provider, the mobile virtual network operator (MVNO). MVNOs do not own and operate the own wireless network. Instead they lease services in bulk and resell them to consumers and businesses by providing subscribers with a SIM card. The SIM card is the delivery mechanism that enables MVNOs to efficiently use normal retail and online distribution channels, thereby expanding the market and fostering greater competition. A very important advantage of SIMs and the GSM network is global roaming. Subject to appropriate business agreements between operators, this feature enables subscribers to move from country to country and use their same phone number for data and voice services. As MNOs evolve network technologies they are reaching broadband speeds. An important goal for MNOs is to use these higher speed networks to provide customers with richer mobile multimedia services and entertainment content such as Internet access, music, TV and video. Newer multimedia SIM and UICC products provide features to support a richer experience for consumers. For example, a multimedia SIM can personalize a smartphone with the branding look and feel of the operator, a very important advantage for the operator. Multimedia SIMs can also support conditional access systems such as those used to protect cable and satellite TV transmissions. This high level of digital rights management and security for content providers enables them to work more closely with mobile operators and deliver high value, current programming such as TV and movies.

3.3 Technology A SIM card is a microprocessor-based smart card, typically using the Java Card operating system. The SIM card and application is defined by ETSI Technical Standard 100 977 V8.14.0 (2007-06), “Digital cellular telecommunications system (Phase 2+); Specification of the Subscriber Identity Module - Mobile Equipment (SIM-ME) Interface, (3GPP TS 11.11 version 8.14.0 Release 1999).” The standard defines the file structure of the card, how the card application works in GSM networks and its security mechanisms. Important information stored in the SIM microprocessor files include:7  The phone identity number used by the operator, called the International Mobile Subscriber Identity (IMSI); note this is not the phone number known by the subscriber; it is used by the operator to connect with the SIM and the mobile phone  PIN codes and PIN reset mechanisms, now called Card Holder Verification information (CHV) and Unblock CHV Key, respectively.  Phone books, abbreviated dialing records, emergency call codes and text messages  A prioritized list of preferred networks, called the Preferred Land Mobile (PLMN) selector  The ciphering key, Kc, and the ciphering key sequence number n used for secure authentication and encryption of communications  The SIM service table, indicating which services are available  Price per Unit and Currency Table (PUCT), which may be used when roaming between countries to compute the cost of calls in the currency chosen by the subscriber

7 ETSI Technical Standard 100 977 V8.14.0 (2007-06), Digital cellular telecommunications system (Phase 2+);Specification of the Subscriber Identity Module -Mobile Equipment (SIM-ME) Interface, (3GPP TS 11.11 version 8.14.0 Release 1999).

 GPRS location information to facilitate packet data switching Authentication and encryption are very important features of the SIM specification. In order to keep the keys secret and provide strong authentication, the SIM application has an internal function called Run GSM Algorithm. The network passes a random challenge number to the SIM using this command, and the microprocessor in the SIM uses the GSM standard algorithm to generate authentication response and encryption key values, which are validated by the network.8 The response is generated inside the SIM, so the secret keys are never exposed to the network. This strong authentication method ensures security for the MNO as well as the subscriber. SIM cards are designed to support other applications programmed using the SIM Application Toolkit (STK). The STK enables the SIM to interact directly with the handset independently of the network. In 2G networks, SIM Application Toolkit (SAT) was defined in GSM 11.14 standard. From release 4 onwards, GSM 11.14 is replaced by 3GPP 31.111 which also includes specifications of USIM Application Toolkit (USAT), which is the equivalent of the STK for UICCs in 3G networks.9 STK applications are developed using Java, an object oriented programming language developed by Sun Microsystems. This language is designed to be platform independent, is widely used making it easy to find programmers and has inherent multi-application and security advantages. An important related technology is over-the-air (OTA) programming of SIM cards. OTA platforms utilize SMS messaging to remotely transmit the settings necessary to use a mobile phone in a network. OTA can be used to add new services, distribute software updates to SIM cards and handsets and manage the device subscriber base for MNOs. SIM technology continues to evolve, and many of the latest advances are in the UICCs that are designed to work with UMTS and LTE networks, which is the subject of the Section 4.

8 Ibid., ETSI TS 03.20. 9 SIM Toolkit, Gemalto, http://www.gemalto.com/techno/stk/

4 UICCs The Universal Integrated Circuit Card (UICC) is a type of microprocessor-based smart card used in mobile phones and other devices. A UICC identifies and authenticates a subscriber to a wireless mobile phone network. The term SIM is widely used in the industry and especially with consumers to mean both SIMs and UICCs, although they are different technologies. The UICC is a new generation of SIM technology specified in newer UMTS and LTE wireless network standards. This section will focus on the differences between UICC and SIM technology, but the reader should remember that the UICC has all of the advantages and capabilities of a SIM as discussed in Section 3. The most important capabilities of the UICC are better support for multiple applications and Internet Protocol (IP) addressing.

4.1 UICCs and Mobile Networks Standards organizations defined the UICC to replace 2G SIM cards as they mapped out the migration from 2G GSM networks to 3G Universal Mobile Telecommunications System (UMTS) and Long Term Evolution (LTE). The most important standards are:  ETSI TS 121 111 V8.2.0 (2008-07), Technical Specification, Universal Mobile Telecommunications System (UMTS); USIM and IC card requirements (3GPP TS 21.111 version 8.2.0 Release 8)  ETSI TS 131 101 V8.0.0 (2009-01), Technical Specification Universal Mobile Telecommunications System (UMTS); LTE; UICC-terminal interface; Physical and logical characteristics (3GPP TS 31.101 version 8.0.0 Release 8)  ETSI TS 131 102 V8.6.0 (2009-07), Technical Specification Universal Mobile Telecommunications System (UMTS); LTE; Characteristics of the Universal Subscriber Identity Module (USIM) application (3GPP TS 31.102 version 8.6.0 Release 8) UMTS and LTE networks are moving toward the use of IP addressing in network communications. The higher broadband speeds coming to mobile networks will provide their customers with much better quality of service for data driven applications. Support for IP communications is an important aspect of delivering services in wireless broadband networks. UICCs are backwards compatible with 2G GSM networks, but also support IP addressing. 4.2 Usage Model for Mobile Devices One important difference is that the UICC is optimized to have multiple applications, including multiple phone subscription applications on a single UICC. With 2G SIMs, the physical SIM card and the SIM subscriber identity application were bound together. In UICC standards, these are separated, and the phone service identity application is called the Universal Subscriber Identity Module (USIM) application. The multi-application capability became increasingly important as operators upgraded their networks to newer standards. There would be transition periods in which the newer network was only partially available. Operators would need to provide subscribers with the newer network where it was available, but would fall back to the older network if that was all that was available. The UICC made it easier to have two apps on the SIM, one 2G for the current GSM network, and one USIM application for the UMTS implementation. In a CDMA network operating with UICCs, the application is called a CDMA Subscriber Identity Module (CSIM). It is possible to have a removable User Identity Module (R-UIM) with all three applications, so it could work in CDMA, GSM, or UMTS handsets.

4.3 Technology In addition to IP protocol support, the other main technology advance in the UICC is that it is designed as a true multi-application smart card. USIM and other applications are separately specified and can co- exist. The need for a more robust multi-application capability extends beyond phone and data service, as operators work with stakeholders in other sectors like banking and entertainment to bring new services like mobile payment or movie broadcasting to the mobile phone. For example, Section 5 discusses Near Field Communication (NFC), a short range wireless communications standard that enables contactless payment or transit fare payment using mobile phones, as well as other applications. Implementing NFC payment applications in mobile phones created new requirements beyond traditional phone and data services. For example, it is necessary to have key and PIN management for use with the payment application that is separate from the phone service application. Neither telecom operators nor banks are interested in managing the others' keys and security, for obvious liability reasons. Payment applications need to be communicated securely from the bank providing the payment account to the mobile phone using OTA networks, with end-to-end encryption assured. The applications need to be isolated from one another inside the phone, and each must have secure post issuance updating capabilities, such as shutting off delinquent or lost payment accounts, for example. The fact that chip-based bank cards, contactless payment and UICCs are all smart card-based made it possible to more easily address these issues. By specifying the UICC as a true multi-application smart card, the new standards laid the foundation to converge more sophisticated applications onto the UICC. For example, the Global Platform specification is an independent, standardized infrastructure for application development, deployment and management of smart cards that is very widely used in financial services and other sectors. The multi-application structure of the UICC enabled GlobalPlatform to define a standard for the mobile services sector that manages the secure over-the-air delivery of new services. Working with wireless standards bodies, GlobalPlatform created the UICC configuration—an implementation of GlobalPlatform Card specification v2.2 on UICCs. It supports remote application management via OTA and USIM applications. It provides dynamic post-issuance card management, including dynamic addition and modification of applications, paving the way to converge payment and other applications on the UICC and mobile phone. Another important application on the UICC is the IP Multimedia Services Identity Module (ISIM). This is an application to provide secure mobile access to multimedia services. In the United States, for example, many subscribers have a UICC with USIM and ISIM applications for phone service and multimedia respectively.10 In LTE networks, new multimedia services will be delivered through the IP Multimedia Subsystem (IMS). A byproduct of IMS is the option to converge services across both wireless and fixed networks. This means eventually subscribers could use the same services across many devices (mobile phones, PCs, office or home networks) and through a number of different channels (e.g., WiFi, DSL, LAN, 3G). In these examples, the UICC can be contained in a USB dongle or other form factor in addition to the mobile phone. This is significant as subscribers have the potential to have multiple devices associated with the same account, increasing the potential for a multiple penetration rate within an operator’s existing subscriber base.11

10 What is a UICC and how is it different from a SIM card?, Just.AskGemalto.com, http://www.justaskgemalto.com/en/communicating/tips/what-uicc-and-how-it-different-sim-card 11 LTE, UICC and the Future of Mobile Communications, Gemalto.com, Jean-Louis Carrara

5 Near Field Communication (NFC) The content in Sections 5.1 through 5.4 is based on content from the NFC Forum, http://www.nfc- forum.org. The Smart Card Alliance thanks the NFC Forum for their contribution.12 Near Field Communication (NFC) is a short-range wireless connectivity technology (also known as ISO 18092) that provides intuitive, simple, and safe communication between electronic devices. Communication occurs when two NFC-compatible devices are brought within a few centimeters of one another. NFC operates at 13.56 MHz and transfers data at up to 424 Kbits/second. Because the transmission range is so short, NFC-enabled transactions are inherently secure. NFC is distinguished by its intuitive interface and its ability to enable largely proprietary wireless networking platforms to interoperate in a seamless manner. The primary uses are to:  Connect electronic devices, such as wireless components in a home office system or a headset with a mobile phone  Access digital content, using a wireless device such as a mobile phone to read a “smart” poster embedded with an RF tag  Make contactless transactions, including those for payment, access and ticketing

5.1 NFC Applications The enablement of NFC has become widely available in smartphones across various operating system platforms such as Android, Windows, iOS, and Blackberry. Everyone is able to perform one or multiple of the following functional aspects enabled by NFC:  Make payments with a wave or a touch anywhere contactless card readers have been deployed  Read information and “pick up” special offers and discounts from smart posters or smart billboards  Store tickets to access transportation gates, parking garages or get into events  Store personal information that will allow secure building access  Take a picture and transfer it to an NFC-enabled printer or monitor  Share business cards with other NFC-enabled phones  ... and perform many more functions

12 Sources: NFC Forum, The Keys to Truly Interoperable Communications and Essentials for Successful NFC Mobile Ecosystem white papers, http://www.nfc-forum.org

Figure 3. The possibilities for using Near Field Communication are nearly limitless. The potent attraction of touch-less transactions will help weave NFC technology into the fabric of our daily lives Now people carrying mobile phones with built-in NFC can tap their phone to make purchases, gain building access, get directions, exchange information, and buy transportation simply by bringing them close to NFC-enabled devices embedded in information kiosks, retail registers, gate readers, advertising signs, vending machines, and thousands of other devices, systems and signage. However, NFC has many other applications that could simplify interaction with a variety of consumer electronic devices, such as cameras, TV’s, PC components. For example, NFC-enabled Bluetooth speakers or headsets that are now commercially available, which allow the user to tap to pair or tap to handover the NFC to Bluetooth exchange. The uses of NFC are endless; with the mass adoption of NFC in smartphones, there are now many peripheral applications adding NFC support as well, opening up many exciting new use cases.

5.1.1 Transit and Ticketing Transportation is one of the leading applications of NFC technology. Contactless tickets have already revolutionized the speed and ease with which all consumers can use public transport and access controlled environments like parking garages. Users praise NFC transactions for their speed, security, and flexibility. With NFC-enabled mobile phones, you can buy tickets, receive them electronically, use them for seamless traveling (such as “park and ride”), and then go through fast track turnstiles. Later, you can check your balance or update your tickets remotely. The cost of providing mass transport or event ticketing can be driven down because NFC-based systems reduce the cost of card issuance and management. Commuter transit systems in the United States, Europe and a number of Asia Pacific countries already use NFC-compatible contactless technologies to speed travelers through to their destinations.

Figure 4. The convenience of NFC is gaining momentum as “seamless traveling” (e.g., bundled public transport, parking) emerges as a future trend.

5.1.2 Payment NFC-enabled mobile devices can store a payment application that is compatible with the millions of installed contactless payment terminals. The intuitive simplicity of holding a mobile phone close to a terminal to purchase products or services instead of swiping or handing over a payment card reflects NFC’s potential to bring about a major change in the way the average buyer pays for things. A phone can store information about multiple accounts, such as credit, debit and prepaid cards, allowing users to select payment instruments more easily than they would from their wallets. Transactions are also secure, with the payment application usually protected by a password. Payment information on lost or stolen

phones can be remotely “deactivated,” enabling an additional layer of security beyond plastic payment cards.

5.1.3 Advertising, Promotions and Information Access Finding and gathering information is easy to do with NFC, whether by bringing a phone to a point on an indoor retail display to obtain an electronic coupon or by holding it up to a poster to download the latest ring tone from one’s favorite musical group. NFC-enabled devices can be a great marketing tool and a source of new revenue for business. Users are surrounded with advertisements and offers of valuable information, making it easy to acquire and consume rich media content. Here lies one of NFC’s major advantages as a marketing tool: The consumer initiates the contact by bringing an NFC-enabled mobile phone to an NFC tag, effectively self-qualifying for the product or service being offered. NFC can fuel the market for advanced personal electronic devices capable of purchasing, playing, storing, and sharing media. Mobile content providers earn revenue when users choose value-added services. Travelers will find it easier to get around in an NFC-enabled world. Tourists from France can use an NFC-equipped tourism kiosk in Singapore to get information in French on their phone’s display screen. Visitors to an unfamiliar location can bring their phones close to a street-side signboard outside a museum to find out about the latest exhibition inside, translated conveniently into several languages. NFC tags can be placed nearly anywhere: inside product packaging, at cash registers and on point-of- sale equipment, or outdoors on access gates, parking meters, newspaper dispensers, offices, houses, garage doors, bus stops, or ATMs. The possibilities are as wide as the imagination. Section 6.2 describes the use case for NFC and mobile marketing applications in more detail.

5.1.4 Connectivity Whether you are holding two phones together to exchange electronic business card information or photos, or bringing two laptop computers together to initiate a high-speed file transfer, NFC offers several ways to speed and simplify data exchange transactions between consumer electronics products. As NFC technology penetrates throughout the office, WLAN settings, printer IDs and even maps of the building can be picked up by NFC-enabled devices, allowing mobile workers to quickly get to work in any office location. Staff members can synchronize calendars, exchange electronic business cards, and access online digital content. In short, NFC simplifies connections. To connect a Bluetooth headset to a mobile phone, for example, just place the two close together and a fast NFC “handshake” links the two devices.

5.1.5 Maximizing other Wireless Platforms Beyond the phenomenal success of the mobile phone, the adoption of mobile communications technologies has not progressed as quickly as many industry watchers have predicted. Thirteen years after its invention, Bluetooth® has become part of the everyday lives of technically progressive users, but it has by no means become ubiquitous. A similar story can be told for Wi-Fi® and ZigBee® communications protocols. That is where NFC comes in, overcoming barriers to wireless technology platform adoption by making each easier to use. Using Bluetooth as an example, one can visit a client and leave behind a Microsoft PowerPoint® presentation. Even if the presenter’s computer and the target computer are Bluetooth enabled, it is still necessary to manually set up the link between the two systems using a password to secure the transfer. But if both Bluetooth systems have NFC chips built in, a Bluetooth peer-to-peer connection can be established simply by bringing the distinctive NFC N-Mark or target mark (see Figure 5) of the first computer to the corresponding N-Mark of the second.

Figure 5. The NFC N-Mark helps users know where to hold their devices together to transfer data and key information. The Wi-Fi Alliance introduced NFC as the one of the ways to configure home networks. The NFC option is widely recognized as the simplest method for setting up home networks, making use of NFC's intuitive user interface for automated out-of-band pairings of Wi-Fi devices.

Figure 6. NFC enables the two Bluetooth-enabled devices to exchange communications parameters, establish a secret key, and create a Bluetooth communication link automatically. The devices can then be moved apart as the picture copies securely from one device to the other at Bluetooth speeds.

5.1.6 A Day in the Life of an NFC Mobile Phone Figure 7 illustrates a typical day in the life of an NFC mobile phone user and shows how the device will be integrated into everyday life in the near future.

Figure 7. Life Made Easier with NFC Mobile Services

 Eric gets on a train to go to his office.  He sees a poster announcing a free concert this evening. He touches his NFC mobile phone to the N-Mark on the poster and transfers the detailed information onto his phone. He reserves seats for the concert with his mobile phone, using mobile communications (e.g., SMS, internet, packet-based connections), and the complimentary tickets are sent to his mobile phone. He sends a text message to his wife to invite her to the concert and dinner.  When he arrives at his office, he touches his NFC mobile phone to the office gate and opens the door.  At lunch time, he pays for his meal using one of the credit cards stored in his phone.  After lunch, he visits the office of his new business partner for a meeting. Those attending the meeting exchange their business cards stored in their NFC mobile phones by touching their phones together.  He meets his wife at 6 PM, and they go to the concert venue. He touches his NFC mobile phone to a turnstile at the entrance to the concert, their reservations are confirmed, and they are admitted.  They visit a shopping center after the concert, where they go shopping and have dinner.  When they arrive at their house, he realizes that he has left his NFC mobile phone on the train. He immediately calls the mobile network operator and makes a request to disable all active NFC services in the phone. If his NFC mobile phone is later found, he will be able to reactivate these services.

5.2 NFC Technology13 Near Field Communication technology evolved from a combination of contactless identification and interconnection technologies. NFC-enabled devices are specified by standards in ISO/IEC, ETSI and ECMA International and by specifications published by the NFC Forum. In June 2006, the NFC Forum took a significant step to enable manufacturers and applications developers to create powerful new consumer-driven products when it unveiled NFC technology architecture and announced the first Forum-approved specifications. Additional details on NFC standards can be found in CSCIP Module 1. As illustrated in Figure 8, NFC devices are unique in that they can change their mode of operation to be in reader/writer mode, peer-to-peer mode, or card emulation mode. The different operating modes are based on the ISO/IEC 18092 NFC IP-1 and ISO/IEC 14443 contactless smart card standards.  In reader/writer mode, the NFC device is capable of reading NFC Forum-mandated tag types, such as in the scenario of reading an NFC smart poster tag. NFC Forum compliant devices in NFC Forum reader/writer mode must support the RF requirements for ISO/IEC 14443A, ISO/IEC 14443 B and FeliCa as outlined in the relevant parts in the ISO 18092. Applications using reader/writer mode include: content distribution, information access, and smart advertising and promotions.14  In peer-to-peer mode, two NFC devices can exchange data. This allows fast, easy and convenient device association, set-up and configuration. For example, Bluetooth or WiFi link set up parameters can be shared or data can be exchanged such as virtual business cards or digital photos. Peer-to-peer mode is standardized on the ISO/IEC 18092 standard and may use the NFC Forum’s Logical Link Control Protocol specifications to enable bidirectional data transfer.  In card emulation mode, the NFC device appears to an external reader much the same as a traditional contactless smart card complying with the ISO/IEC 14443 standard and FeliCa specification. This enables contactless payments and ticketing by NFC devices without changing the existing infrastructure. Applications using card emulation mode include: mobile payment, ticketing, and access control.

Figure 8. NFC Forum Technology Architecture

13 Source: NFC Forum Technical FAQ, http://www.nfc-forum.org/resources/faqs/ 14 Fundamentals of NFC, Reid Holmes, INSIDE Secure, Smart Card Alliance Contactless Payments Workshop, 2012 Payments Summit, February 7, 2012

The NFC Forum has mandated four tag types to be operable with NFC devices. This is the backbone of interoperability between different NFC tag providers and NFC device manufacturers to ensure a consistent user experience. NFC tags are simple passive devices that contain an antenna and a small amount of memory and that are powered by a magnetic field.15 Depending on the tag type, the memory can be read-only, re-writable or writable once, and the tag could be secured by cryptographic functions. The operation specifications for the NFC Forum Type 1/2/3/4 Tags provide the technical information needed to implement the reader/writer and associated control functionality of the NFC device to interact with the tags. Type 1/2/3/4 Tags are all based on existing contactless products and are commercially available. Tag types include:  NFC Forum Type 1 Tag. The Type 1 Tag is based on ISO/IEC 14443A. Tags are read and re- write capable; users can configure the tag to become read-only. Memory availability is 96 bytes and expandable to 2 Kbytes. Communication speed is 106 Kbit/s.  NFC Forum Type 2 Tag. The Type 2 Tag is based on ISO/IEC 14443A. Tags are read and re- write capable; users can configure the tag to become read-only. Memory availability is 48 bytes and expandable to 2 Kbytes. Communication speed is 106 Kbit/s.  NFC Forum Type 3 Tag. The Type 3 Tag is based on the Japanese Industrial Standard (JIS) X 6319-4, also known as FeliCa. Tags are pre-configured at manufacture to be either read and re- writable, or read-only. Memory availability is variable; theoretical memory limit is 1MBytes per service. Communication speed is 212 Kbit/s or 424 Kbit/s.  NFC Forum Type 4 Tag. The Type 4 Tag is fully compatible with the ISO/IEC 14443 standard series. Tags are pre-configured at manufacture to be either read and re-writable, or read-only. The memory availability is variable, up to 32 KBytes per service. The communication interface is either Type A or Type B compliant and its speed is up to 424 Kbit/s. The NFC Forum has released 19 specifications, as of April 201516:  NFC Data Exchange Format (NDEF)  NFC Tag Types 1-4  Record Type Definition Technical Specifications o NFC Record Type Definition (RTD) o NFC Text Record Type Definition o NFC Uniform Resource Identifier (URI) Service Record Type Description o NFC Smart Poster Record Type Description o Generic Control RTD Technical Specification o Signature RTD Technical Specification  Reference Application Technical Specifications o NFC Forum Connection Handover Technical Specification o NFC Forum Personal Health Device Communication (PHDC) Technical Specification  Protocol Technical Specifications o NFC Logical Link Control Protocol (LLCP) Technical Specification o Digital Protocol Technical Specification o NFC Activity Technical Specification o NFC Simple NDEF Exchange Protocol (SNEP) o NFC Analog Technical Specification

15 Fundamentals of NFC, op. cit. 16 http://nfc-forum.org/our-work/specifications-and-application-documents/specifications/nfc-forum-technical- specifications/

o NFC Controller Interface (NCI) Technical Specification v1.1 The NFC Forum has also established a certification program to provide device manufacturers with a means of establishing that their products conform to the NFC Forum published specifications.17 5.3 NFC Mobile Ecosystem and Convergence with Contactless Card Technology18 Within the last few years, contactless card technology has been maturing and has been adopted by major sectors such as transport, payment, and retailing. In parallel, mobile phones with the additional offerings of Internet and multimedia services have successfully entered people’s lifestyles. Contactless card technology can now expand its domain of applicability by adding contactless functionality to the mobile phone. The Near Field Communication (NFC) mobile service, which leverages the current contactless infrastructures, has just started to emerge. In some countries, services benefiting from the convergence of contactless card technology and mobile phones have already been introduced commercially, and these converging services are ubiquitous and successful. This section describes the NFC mobile ecosystem. As shown by the arrows in Figure 9, the current contactless business domain is expanding into domains including NFC mobile business opportunities. In some mass market businesses such as transport or payment, a contactless infrastructure already exists in a growing number of schemes, and users have some experience with those contactless services. The NFC mobile phone will enhance these existing services and provide opportunities for new revenue sources. The NFC mobile ecosystem can be built as a new marketplace, and its success depends on the win-win relationships among all the stakeholders. The NFC mobile ecosystem extends the current contactless ecosystem model with additional functionality. There are multiple possibilities for ecosystem players to provide the mobile system functionalities, which are identified in the following description of key functionalities.

Figure 9. The NFC Mobile Ecosystem

17 http://www.nfc-forum.org/certification/ 18 This section describes the ecosystem that relates to NFC applications using card emulation mode and a secure element.

5.3.1 Key Functionalities

5.3.1.1 Service Provisioning Service provisioning is a function of the current contactless business enabling users to subscribe to and receive their personalized contactless cards, and this capability will expand for NFC mobile services. The functions to which a user subscribes and the functions of the service provisioning and preparing the personalization data will ride upon the existing infrastructure. New functionalities such as remote user management and authentication will then emerge due to the availability of a connected network. This key functionality is usually performed by the service providers.

5.3.1.2 Mobile Network Provisioning Mobile network provisioning, while existing in the mobile domain, adds new functionality to the contactless domain to realize the NFC mobile ecosystem. It includes functionalities to maintain the network infrastructure, to provide data connectivity service to users, to offer user authentication for ensuring that only contracted users can connect to the mobile network, and to offer user care for the data connectivity service. This key functionality is usually performed by the MNOs (mobile network operators) or MVNOs (mobile virtual network operators).

5.3.1.3 Trusted Service Manager19 The trusted service manager (TSM) provides a contact point between service providers and NFC mobile phones. Service providers can provide NFC mobile phones with remote multi-application management functionality through the TSM. See Sections 5.3.3.1 and 5.3.3.2 for more discussion on the TSM.

This new functionality includes the following:  Issuing and managing a trusted execution environment  Assigning trusted areas within a trusted execution environment to s specific service  Managing keys for a trusted execution environment  Securely downloading applications to NFC mobile phones  Personalizing applications  Locking, unlocking and deleting applications according to requests from a user or a service provider These functionalities can be performed by mobile network operators, service providers or third parties, and all or part can be delegated by one party to another.

5.3.2 Ecosystem Players

5.3.2.1 Users An NFC mobile service user is required to have an agreement with the service provider of an NFC mobile service prior to its first use. In addition, the user is required to subscribe to the mobile network provisioning service and have an NFC mobile phone in order to make use of NFC mobile services. In the era of the plastic card, users typically need to have a different contactless card for each service, but when the NFC mobile phone becomes available, they can put all their services on one mobile device.

19 The terminology TSM (Trusted Service Manager) can be used to mean either an ecosystem player or a functionality. In this section, TSM is used strictly to mean a functionality that is independent of ecosystem players.

5.3.2.2 Chipset Manufacturers Chipset manufacturers provide the integrated circuit components (ICs) needed for all NFC devices, in line with the relevant technical standards (ISO/IEC, ECMA, ETSI, and NFC Forum). Chipset development is carried out in close cooperation with handset manufacturers and service providers in order to fulfill application requirements. These chipsets include:  ICs for the NFC controller, including device drivers and middleware, as used in handsets and reader/writer terminals  ICs for the trusted execution environments (UICC, embedded, removable for phones, and SAMs for terminals), including in many cases the pre-personalization of such devices  ICs for smart tags (e.g., as used in smart posters) Chipset manufacturers contribute to standardization efforts in relevant organizations, based on their experience in NFC and related areas such as RFID and contactless smart cards.

5.3.2.3 NFC Handset Manufacturers Handset manufacturers design and produce NFC mobile phones according to industry standards. They provide capabilities for service providers to develop applications that provide an intuitive experience to users. Handset manufacturers compete by providing attractive combinations of design, price and feature sets, where NFC capabilities make applications and service offerings easier to use, and also by enabling new usage scenarios for phones. The integration of cutting-edge technologies and services in mobile phones will contribute to a flow of innovations and acceptance that encourages users to adopt NFC services and also to upgrade their current mobile devices to NFC mobile phones offering these services.

5.3.2.4 NFC Reader/Writer and Tag Manufacturers NFC reader/writer and tag manufacturers design and produce devices according to requirements from service providers and industry standards. They also deliver the following values to the ecosystem in order to reduce the implementation efforts of service providers:  Secure methods of fulfilling customer requirements – Tamper resistance – Encryption of communication channel and/or contents – Encryption key management by service providers  Software (e.g., drivers, middleware and software development kits (SDKs))  Interoperability management and quality management NFC reader/writer and tag manufacturers cooperate with mobile network operators, NFC handset manufacturers, and service providers to make the devices capable of communicating with new form factors and to support new communication logic, such as is offered by peer-to-peer (P2P) mode.

5.3.3 Key Factors in Building a Successful NFC Mobile Ecosystem The NFC mobile ecosystem is an expansion of the current contactless ecosystem, mainly targeting contactless card businesses. To be attractive and successful, it must create value, and to achieve that goal, it requires the addition of new functionality on top of the current card business. On the other hand, depending on the marketplace, the NFC mobile ecosystem must be open enough to support the variety of existing and future models. To be successful it must support a win-win relationship among all the ecosystem players. This section considers the key factors for building a successful NFC mobile ecosystem from the viewpoint of the potential players, especially targeted to the new functionalities.

5.3.3.1 Mobile Network Operators The evolution of a mobile phone into an NFC mobile phone will provide mobile network operators with opportunities to develop new business areas. NFC mobile services will increase the opportunity for mobile usage in many new situations, as explained in the use cases. To achieve this, it is not sufficient to offer the contactless card functionalities separately from those of a mobile phone. It is vital to create and offer new value by combining the functionalities of both mobile phones and contactless cards. When an NFC mobile phone supports the multi-application capability, it will not only boost convenience for users by allowing them to use many applications in one device, but will also stimulate the NFC market by increasing the number of users of NFC mobile services. Smooth introduction of the multiple- application capability is one of the key success factors. A second essential factor is to guarantee to users and service providers a trusted end-to-end system for their applications and data. This will be achieved via the TSM functionality. The TSM is the contact point that links mobile network operators, service providers and NFC mobile phones, and it provides the functionality of remote multi-application management. While there will be many possible models showing who might provide the functionalities that make up the TSM, mobile network operators and service providers are the leading potential candidates. It should be noted that, whatever model may be selected, it is vital to clearly specify the responsibilities of each ecosystem player within the specific model. How the functionalities of the TSM are divided and provided by the ecosystem players is another of the key factors for success.

5.3.3.2 Service Providers From the service providers’ point of view, a key success factor is improving their existing contactless services. Users will adopt NFC mobile services only if they feel that they are receiving new functionality and/or advantages. On top of the existing contactless card services, it now becomes possible for service providers to offer personalized advertisements or messages to the same device that is hosting the contactless card. With the contactless card, the methods of providing such information are either asynchronous, with the card being touched on the reader/writer, or delivered through a completely separate channel (e.g., email). Compared to this model, an NFC mobile phone is always connected to a mobile network, and service providers can send messages to the phone anytime and anywhere. An interactive real-time and fine-grained one-to-one user management scenario becomes possible and makes NFC mobile service more attractive to users. Service providers will benefit from the increased number of NFC services and a higher frequency of usage by supporting the multi-application capability of an NFC mobile phone. The TSM also provides an important functionality for service providers. The trustworthiness of the TSM guarantees that they can put multiple applications in one device safely, which is ensured by the TSM’s management of the trusted area. Service providers also expect that freedom of their service management is guaranteed.

5.3.4 Conclusion The contactless card has evolved into an NFC mobile phone by adding the functionalities of a mobile phone. An NFC mobile phone has three advantages compared to existing contactless cards: interactivity, remote multi-application management, and remote user management. To realize these advantages, a stand-alone NFC mobile phone is not sufficient, as cooperation with back- end server functionalities is necessary. New players who provide such new functionalities need to be added, and the current contactless ecosystem will expand into the NFC mobile ecosystem. Because there are multiple possibilities as to which ecosystem players will provide which new functionalities, this section has identified them as functionalities instead of specifying players. NFC mobile services are at an emerging stage, and this section is a “snapshot” of the current phase. The contactless card business and the mobile communication business have developed on different paths

and have different business cultures. To create and expand the new ecosystem, the participation of new players from different business domains should be encouraged.

There are two key factors in ensuring success for NFC mobile services:  The first is that the NFC mobile ecosystem should support a variety of existing and future business models. The ecosystem should embrace new players as well as industries having well established business models in place. To be successful it must support a win-win relationship among all the ecosystem players.  The second is that the responsibilities of each ecosystem player should be clearly specified within a specific model. The roles of the players change based on phases of ecosystem maturity, geographic regions, and target vertical industries. A variety of solutions should be available in conjunction with development of NFC mobile services, and these solutions should be selected based on support for a viable ecosystem. The mobile NFC ecosystem represents a convergence of differing business cultures. This presents an opportunity to develop new businesses and markets. The variety of ecosystem players involved will stimulate the development of new NFC mobile services. 5.4 The NFC Forum NFC is already well on the path to widespread adoption because it clearly points the way to greatly expanded wireless communications. But for NFC to flourish on a truly wide scale, consumer-oriented companies need to work together. To that end, the Near Field Communication Forum was formed in 2004. NFC Forum members represent manufacturers, applications developers, retailers, financial services institutions, government, transport organizations, and non-profits. Working together, the Forum promotes the use of NFC technology in consumer electronics, mobile devices, and PCs by providing a highly stable framework for extensive application development, seamless interoperable solutions and extraordinary security. To meet that goal, the NFC Forum:  Develops standards-based specifications that define NFC device architecture and protocols for interoperability.  Encourages the use of NFC Forum specifications.  Works to ensure that products claiming NFC capabilities comply with NFC Forum specifications.  Educates consumers and enterprises globally about NFC. NFC Forum-certified products, designed to work in concert with other wireless technologies, will offer intuitive access to content and services, making it possible for nearly any consumer to pay for physical goods, enter controlled environments like arenas or transit stations, and access digital services anywhere, at any time, using any NFC-Forum-compliant device anywhere, at any time.

5.5 NFC Deployment Status NFC technology has been deployed in hundreds of pilots or commercial services worldwide, supporting mobile marketing (e.g., coupons and loyalty programs), mobile payments, mobile ticketing, and applications using non-mobile devices such as personal computers, Bluetooth-enabled speakers and headsets, and printers. Discussion of mobile payments applications can be found in CSCIP Module 6. Deployment of NFC technology in commercial services has taken significant time, due to two key factors:  The complexity of the ecosystem required for secure NFC application implementation, with multiple industry participants involved and complex business relationships and requirements needing to be defined.  The availability of mobile handsets and devices that support NFC.

The industry and analysts are forecasting significant growth in NFC handsets, applications and services. Example forecasts include:  Research and Markets forecasts that the global NFC-enabled handset market will grow at 55.8% CAGR during 2014-2019.20  IDATE reported that 278 million NFC phones were in use in 2014 vs. 146 million in 2013; they forecast the number of NFC phones in circulation to grow to 1.9 billion by 2018.21  Juniper Research reported that the number of users of NFC-based contactless payments will grow from 101 million in 2014 to 516 million in 2019.22 5.6 Security and NFC Applications in Card Emulation Mode23 While not all NFC applications require security, those that involve financial transactions, tickets, secure identity credentials, or certain mobile marketing applications (e.g., coupons and loyalty) require higher security to protect account or user credentials. In card emulation (CE) mode, a mobile device can emulate any contactless smart card24 (such as those used for contactless payments, transit fare payment and building or hotel room access) when tapped on a contactless reader or point-of-sale (POS) terminal. Two approaches are used for storing and securing virtualized contactless card application and associated credentials:  Using "secure element" (SE) within the phone to securely store applications and/or credentials (e.g., financial account numbers, confidential information) and provide for secure execution of applications. The secure element (secure memory and execution environment) is a dynamic environment in which application code and application data can be securely stored and administered and in which secure execution of applications occur. The element resides in highly secure crypto chips25 (a smart card chip). The element provides delimited memory for each application and functions that encrypt, decrypt, and sign the data packet. The secure element present in mobile devices is GlobalPlatform compliant to provide better interoperability.26  Using host card emulation (HCE). Google’s support for HCE in the Android operating system (OS) v4.4 (KitKat) created a different approach for storing applications and credentials. HCE support is currently available in the Android operating system (Android KitKat 4.4 and higher) and the BlackBerry operating system. This section describes the two approaches and the impact on security.

20 “NFC Transaction Market (47%) and NFC Enabled Handsets (55%) 2019 Growth Forecasts in New Global Research Reports,” http://www.prnewswire.com/news-releases/nfc-transaction-market-47-and-nfc-enabled- handsets-55-2019-growth-forecasts-in-new-global-research-reports-285591571.html 21 “IDATE forecasts NFC phones and payments volumes,” NFC World, July 15, 2014, http://www.nfcworld.com/2014/07/15/330373/idate-forecasts-nfc-phones-payments-volumes/ 22 “Juniper Research: Apple Pay and HCE to push NFC payment users to 516M by 2019,” FierceWireless, October 29, 2014, http://www.fiercewireless.com/europe/story/juniper-research-apple- pay-and-hce-push-nfc-payment-users-516m-2019/2014-10-29 23 Security also needs to be considered for NFC applications using other modes; this topic is not covered in this section. 24 Footnote: Smart card technology is available in multiple form factors, including plastic cards, fobs, and secure elements used in mobile phones. This white paper uses the term “smart card” generically to refer to all forms of smart card technology. 25 A crypto chip is a powerful, high-speed, programmable cryptographic engine for operating private and public key- based encryption systems. 26 Security of Proximity Mobile Payments, Smart Card Alliance white paper, May 2009, http://www.smartcardalliance.org

5.6.1 Secure Element Enabled Card Emulation With secure-element-enabled card emulation, the NFC controller routes the communication from the contactless reader or POS terminal to a tamper-resistant dedicated hardware component called the SE. The SE safely stores the card emulation application and associated credentials. All NFC-enabled mobile devices implement the capability to allow SEs to: 1. Communicate with the NFC controller, and through it, with contactless readers to perform transactions. 2. Communicate with user-interfacing mobile applications running on the mobile device operating system, such as mobile wallets. 3. Communicate over-the-air with the credential provisioning infrastructure, called the trusted service manager (TSM). Figure 10 illustrates the mobile device architecture for SE-based NFC card emulation.

Figure 10. SE-Based NFC Card Emulation The secure element can reside in an embedded secure smart card chip on the handset, on the Subscriber Identity Module (SIM) or Universal Integrated Circuit Card (UICC), or on a secure digital (SD) card that can be inserted into the mobile phone. SIMs and UICCs are issued by the mobile network operators (MNOs) and embedded SEs are issued by mobile device manufacturers. SEs on microSD cards can be issued by any application provider. When credentials are stored in the SE, they are provisioned by an entity known as a TSM. Provisioning the NFC SE application and related credentials requires cooperation and integration among multiple entities, which may include issuers, wallet providers, MNOs, payment processors, TSMs, and other members of the ecosystem. Figure 11 illustrates the use of a TSM to provision SE applications and credentials. Credentials stored in an SE are stored in security domains that adhere to GlobalPlatform specifications. Each service provider or issuer is assigned a specific domain, and each domain is protected by cryptographic keys that are known only to the participants, protecting them from any unauthorized access. During a payment transaction, the mobile wallet application authenticates itself to the SE, typically through a PIN or password, key, or digital signature, to enable transmission of the credentials to a contactless POS terminal or other acceptance device.

Figure 11. Use of a TSM to Provision Credentials to the SE The following content is from the Eurosmart position paper, "NFC Trends"27 and the Smart Card Alliance white paper, “The Mobile Payments and NFC Landscape.”28 The Smart Card Alliance thanks Eurosmart for their contribution.

5.6.1.1 SE Architectures and Solutions Several secure element architectures and solutions are available to address the requirements of customers and markets. All of the solutions require the NFC controller to communicate with the secure device. Solutions differ primarily in the location that the secure application and data is hosted and include:  UICC (SIM)-based removable secure element. The UICC smart card hosts the secure NFC application (e.g., banking, transportation) and data in addition to the standard functionalities of the SIM card. The UICC secure element has been standardized by ETSI and supports the Single Wire Protocol (SWP) to communicate with the NFC controller.  MicroSD card-based secure element. A tamper-resistant hardware component based on smart card technology that can be removed from the mobile phone and that is based on standard form

27 NFC Trends, Eurosmart position paper, October 2009, http://www.eurosmart.com/index.php/publications/position- papers.html 28 The Mobile Payments and NFC Landscape: A U.S. Perspective, Smart Card Alliance Payments Council white paper, September 2011, http://www.smartcardalliance.org/pages/publications-the-mobile-payments-and-nfc- landscape-a-us-perspective

factors (e.g., microSD) serves as the secure element. Solutions with very complex integration levels (i.e., secure element and antenna in the SD card) are available that only use the mobile phone as the user interface device. Other SD card-based solutions merge more completely with the NFC environment of the mobile phone.  Embedded hardware secure element. A tamper-resistant, hardware component based on smart card technology is soldered into the mobile phone and serves as the secure element. Several field trials have been done based on this solution, which has a maturity level comparable to the UICC.  Secure element features integrated in the mobile device baseband processor. This approach implements the secure element in a secure memory area in the baseband processor. In order to be tamper-resistant, the secure memory is totally separated by firewall from the other parts of the baseband processor. This approach is currently a more long-term solution, as the security level does not yet match other secure element approaches. All of these architectures rely on the same standards for application development, over-the-air provisioning, remote personalization and life cycle management. As a consequence, the NFC applications will share the same development environments and architectures regardless of the secure element architecture, thus ensuring a maximum re-use and interoperability of service providers’ investment. The most common execution environments for NFC applications are:  Java Card™ and GlobalPlatform in the secure element. Java Card™ is the main execution environment for secured applications in the secure element and could rely on the SIM Toolkit or the Smart Card Web Server for implementing a man-machine interface. GlobalPlatform will be used as the main life cycle management standard regardless of secure element architecture.  Java for Mobile in the handset. The man-machine interface of the NFC applications is likely to use Java for Mobile in most phones (except smartphones) with its NFC related API: JSR257 for NFC services and JSR177 for exchanges with the secure element.

5.6.1.1.1 UICC (SIM)-Based Removable Secure Element In this architecture, the NFC chip communicates with the UICC using the Single Wire Protocol (SWP) (see Figure 12), which has been an ETSI standard since 2008. The UICC hosts the applications in a trusted environment. These applications can be enabled by the NFC chip. Since the UICC will also operate as the standard SIM card in the mobile phone, services like over-the-air updates (e.g., provisioning, personalization, life cycle management) can be performed. This capability offers the possibility for installing additional applications (e.g., payment, ticketing, access, loyalty) on the UICC and increasing the services of NFC products in the field. Pre- and post-installation of applications and user information is possible. Figure 12. UICC-Based Secure Element

5.6.1.1.2 MicroSD Card-Based Secure Element This NFC approach combines a secure smart card chip and optional external flash memory in a microSD card form factor. This form factor is currently used in many handheld electronic devices such as digital cameras, mobile phones, car radios, computers, and MP3 players. The smart card chips used in the microSD and UICC have the same security level. In this architecture (see Figure 13), the microSD hosts applications in a secure environment that can be enabled by the NFC chip. Both security chips, the microSD card and the UICC, act as independent secure elements with different interfaces to the NFC device. The microSD can contain a secure application, a cryptographic coprocessor, the NFC controller and antenna, and even the user interface to a wallet for display on the phone. Mobile phones lacking embedded NFC capability can become NFC-enabled by inserting a microSD card. It is important to note that microSD cards come with different configurations and interfaces that affect performance and often require hardware and software support from the handset.29 Target applications are payment, ticketing, access, and others. Since the over-the-air update of the microSD card will be possible, pre- and post-installation of applications could be supported. Figure 13. MicroSD Card-Based Secure Element

5.6.1.1.3 Embedded Hardware Secure Element As in the previous solutions, the embedded secure element is based on smart card technology. In this case the embedded secure element is embedded in an electronic package and is hardwired to the mobile phone during manufacturing (and thus is not removable). (See Figure 14.) This is the main difference from the UICC and microSD™ card solutions. The embedded secure element has the same security level as the other solutions and works independently from other secure elements in the mobile phone environment. The NFC controller can enable the secure applications stored on the embedded secure element. This implementation does not provide the portability of the microSD or UICC approaches. However, it allows phone manufacturers and mobile operating system providers to design, certify, and implement basic NFC SE transaction applications for a particular phone. Target applications are payment, ticketing, access, and others. In the future, the embedded secure element could additionally also host the mobile trusted module (MTM) functionality, helping to secure the mobile phone. Each of the target applications could be installed based on the user's request during the life cycle of the mobile phone.

29 Ibid.

Figure 14. Embedded Hardware Secure Element

5.6.1.1.4 Secure Element Integrated in the Mobile Device Baseband Processor This approach will not require an additional device to store the secure application and (e.g., a microSD card, embedded secure element or the UICC). The host of the secure application will be the mobile phone's baseband processor, using portions of secure memory and processing. (See Figure 15.) The current secure baseband processors (SBP) could functionally be used as a secure element. However, secure baseband solutions have not yet been subject to security certification or regulatory approval in the payments industry and do not reach a security level comparable to a dedicated security controller. The NFC controller can enable the secure applications stored in the SBP. Target applications are payment, ticketing, access, and others. The SBP could be accessed over-the-air for installation, personalization and updates of the secure applications. Figure 15. Secure Element Integrated in the Mobile Device Baseband Processor

Industry expectation is that future handsets will include an embedded SE or support a UICC removable SE. One reason that more NFC-enabled phones are not currently available is that handset manufacturers have been slow to adopt SWP, which is required for a UICC to communicate with the phone antenna and NFC modem. Several solutions are available that can bridge the gap and equip selected phones with SEs. Smart contactless stickers can be attached to mobile phones; such stickers act only as contactless payment cards, with no added value provided by the phone. As discussed in Section 5.6.1.1.2, microSD cards with smart card components can also be added to mobile phones,

enabling phones with a suitable card slot to support NFC. Other accessories (such as iCarte™) are available that can provide iPhones™ with NFC capability.

5.6.2 Host Card Emulation30

HCE introduces an option for the NFC controller to now additionally route communication from the contactless reader or POS terminal to an HCE service on the mobile device’s host CPU. With HCE, an ‘APDU Service’ running on the host can interface with a contactless reader via NFC. This HCE service can be part of a mobile application with a user interface, such as a mobile wallet for payment. The credentials used by this HCE service can be stored in the application itself, or they could be stored in other secure locations such as a trusted execution environment (TEE) or an SE (see Figure 16).

Figure 16. HCE Service with Different SE Form Factors Alternatively, the HCE service could connect in real-time or at given intervals with a back-end server in the cloud to retrieve credentials to exchange with the contactless terminal. Real-time retrieval of credentials from the cloud at the moment of tapping on a reader is a possible but unlikely option, as network latency may result in a poor user experience. Figure 17 illustrates this process for a payment app.

Figure 17. Obtaining Credentials from the Cloud Using HCE

30 Additional information on HCE can be found in the Smart Card Alliance white paper, “Host Card Emulation (HCE) 101,” August 2014, http://www.smartcardalliance.org/publications-host-card-emulation-101/

5.6.3 Application Identifier Routing for SE and HCE Implementations Prior to the introduction of HCE, all requests coming from a contactless reader to communicate with an NFC application were routed to the active SE. The HCE implementation in Android or other mobile operating systems must take into account the possible coexistence of NFC card emulation services on an SE and in the host (mobile device) OS. To do so, Android KitKat defines a procedure called ‘AID routing’ that will allow the NFC controller to determine where to route a request from a reader to communicate with a given NFC application, which is identified by its application identifier (AID). The NFC controller implements a routing table, populated by the mobile OS, which lists the AIDs of NFC applications stored in the SE. When the NFC controller receives a request to select an application (‘SELECT AID’ command) from a contactless reader, it searches for the AID in its routing table. If it finds it, it will route the command to the active SE; otherwise, it will take it to the host. Figure 18 summarizes the two approaches to providing credentials for a transaction. On a mobile device that does not support HCE, all calls coming from a contactless reader are routed to the active SE. On a mobile device with HCE support, the NFC controller acts as a switch and routes the information appropriately to either the SE or the host OS.

Figure 18. NFC Communications with the SE (left) or with the Host CPU Using HCE (right)

5.6.4 Security Trade-Offs When an app uses HCE, communications with the contactless terminal are no longer routed to the SE but through the NFC controller to the mobile device’s host CPU on which the app is running. This change introduces certain risks. Communication between the NFC controller and the HCE-enabled app can be spied on by malware applications. Malware applications can attack the operating system, a risk which is exacerbated when the handset is compromised by exploiting, rooting or jailbreaking. The malware itself may also be able to exploit, root or jailbreak the device, or spoof the user into initiating such actions. In addition, denial of service attacks can take place if routing is changed by a malware application. More generally, cloud storage and backup servers can be attacked, as can credentials stored in applications that are used to gain access to cloud storage and backup servers. Various measures can enhance the security of HCE:

 White box cryptography  Tamper proofed software  Biometric factors  Device identity solutions  Security frameworks/trusted execution environment  Encryption  Tokenization  Additional security provided by an SE

5.6.4.1 White Box Cryptography White box cryptography is a form of obfuscation for deterministic algorithms, and it is usually applied to cryptographic algorithms. It is used to prevent the exposure of secrets (usually keys) in memory or in code. Generally a white box implementation of cryptography turns a cipher into a robust form where the secret is combined with the code such that it cannot be easily derived or distinguished, but can be used in place to create an obfuscated boundary for processing.

5.6.4.2 Tamper-Proofed Software Tamper proofing of software (also known as tamper detection, anti-tamper or tamper resistance) is the addition of software security to software in order to make it harder for an attacker to change or modify the software statically or dynamically. Typically expressed in the form of runtime integrity checking, most systems also include other defenses to make tampering or reverse engineering harder such as obfuscation, breakpoint defenses, anti-debug and other measures. Upon detecting an attack, tamper- proofed systems generally produce a response which usually makes a program malfunction, fail to operate, or record and communicate the attack.

5.6.4.3 Biometric Factors Biometric factors can be used to strengthen user authentication for HCE-enabled applications in addition to other means of authentication. One advantage of using biometric factors is its relative user friendliness, compared (for example) to requiring a multitude of passwords. Gartner predicts that by 2016, 30 percent of organizations will be using biometric data for authentication. Currently, three types of biometric factors can be used:  Fingerprints  Facial recognition  Voice recognition Fingerprint readers have been included in laptops and other devices for some time. Samsung introduced a fingerprint reader with its new Galaxy S5, which also supports NFC. Facial and voice recognition are implemented in various mobile phone models and can be used at the application level. If biometrics are used, the privacy and security of the biometric data must be considered in application implementation.

5.6.4.4 Device Identity Solutions Device identity solutions authenticate handsets to online services. A number of solutions are available to support device identity and can provide an additional layer of security for HCE-based applications.

An example of an approach for device identity is the Fast Identity Online (FIDO) Alliance specification. FIDO protocols use public key cryptography techniques to provide online authentication. When using an online service, a user’s device creates a new key pair, retaining the private key and registering the public key with the online service. The user’s device authenticates through signing off with the private key, which can only be unlocked locally on the device through secure mechanisms such as swiping a finger (biometrics) or entering a PIN. The FIDO approach supports a range of different technologies that can co-exist, including (for example) tokenization and one-time password (OTP) solutions. Samsung has built-in biometric security. PayPal is the first service provider to use the fingerprint verification functionality in the recently launched Galaxy S5 handset with FIDO Ready software.31 (FIDO Ready products are based on the draft FIDO technical specification.32)

5.6.4.5 Security Frameworks/Trusted Execution Environment The trusted execution environment (TEE) is a secure area in the main processor or coprocessor of a mobile device in which data can be stored and processed.33 The TEE can support safe execution of authorized security software (trusted applications) in a trusted environment. The TEE is composed of software and hardware, offering protection against software attacks originating from the rich operating system (Rich OS) in a mobile device. The TEE assists in the control of access rights and houses sensitive applications that need to be isolated from the Rich OS. The TEE can work with the SE to provide protection. For example, the TEE can provide a secure interface to transmit a PIN stored in the SE or filter access to applications stored in the SE. Since the TEE runs its own operating system, it is not affected if the handset’s main operating system is compromised. For HCE-enabled applications, the TEE can provide an additional level of security:  PIN/password entry. The TEE will allow additional protection of the HCE solution by allowing secure input of a PIN or password. (The TEE has the ability to obtain a completely separate secure input from the input of the mobile device that cannot be intercepted by malware on the mobile device OS. This allows local stored tokens to be unlocked, the individual to be authenticated to the cloud part of the HCE solution, or even the input of a PIN that is then transmitted to the terminal that the HCE-enabled mobile device is interacting with.)  Secure storage of credentials. The TEE allows secure storage of keys and implements the main cryptographic operations directly within the boundaries of the secure execution environment. This allows, for example, the storage of tokens for payment applications and offers enhanced protection against exploits compared to the standard mobile device OS.  Secure transfer protocol endpoint. Since the TEE allows the loading of trusted applications (TAs) and related cryptographic material, it is possible to let a cryptographic secure channel from the terminal end in the TEE. This means that the commands (APDUs) transferred from the terminal via the contactless interface and HCE are encrypted and transmitted all the way into the TEE, and hence can be protected for integrity and privacy. In addition, a second secure transfer channel can be employed between the TEE and a cloud application. In this manner keys and data are only ever visible in clear in the TA, allowing a higher level of protection compared to the applications running in the mobile device OS. It is important to note, however, that the TEE may not have the SE’s tamper resistance, depending on the implementation.

31 “The FIDO Alliance Announces First FIDO Authentication Deployment − PayPal and Samsung Enable Consumer Payments with Fingerprint Authentication on New Samsung Galaxy S5,” FIDO Alliance press release, February 24, 2014, https://fidoalliance.org/news/item/the-fido-alliance-announces-first-authentication-deployment-paypal- samsung. 32 https://fidoalliance.org/specifications/download/. 33 Trusted Execution Environment Guide, Global Platform™, http://www.globalplatform.org/mediaguidetee.asp.

5.6.4.6 Encryption Encryption ensures sure that data is not transmitted in plain text. Siphoning cleartext data has been the culprit in data breaches in card-present and card-not-present payment environments, when cards are swiped or inserted, or when data is entered into Web-based forms (using man-in-the-middle attacks). HCE data can be encrypted and data can be stored within the applications.

5.6.4.7 Tokenization Tokenization is the process of substituting a random value for a high value credential (e.g., a PAN or Social Security number), thereby creating a low value equivalent. Tokenization can be used to mask the identity of a credential.

5.6.4.8 Secure Element HCE does not dictate where to store data. HCE enables an NFC controller to communicate directly with applications running on the host CPU. Data can be stored in the cloud or in the SE. Even though HCE enables NFC contactless technology without an SE, a hybrid model that uses the SE in combination with a cloud-based solution is possible. The SE can store payment and other data securely. SE security is guaranteed through the use of cryptographic keys (symmetric and asymmetric). The security of the SE can be enhanced through the TEE, which can interpose between the Rich OS and the SE and allow only trusted applications to access the SE. (The TEE is described in Section 5.6.4.5.) It should be noted that this is still riskier than the situation where both sensitive data and programs (applets) are deployed on secure element hardware separate from host OS. Furthermore, using an embedded SE in combination with the NFC controller, where an additional parameter indication of ‘contacted’/wired mode versus ‘contactless’/virtual mode interface, can be very useful to monitor and prevent remote relay attacks. Most NFC controllers have secure firmware, which would make it difficult to replace the firmware with rogue firmware where the NFC interface to the SE or HCE can be compromised.

5.6.5 Summary Until recently, SEs were used with the contactless card application and associated credentials in NFC card emulation implementations. HCE significantly changes card emulation implementation requirements and introduces new business plan considerations for service providers and issuers wishing to use their credentials for NFC use cases. HCE has the potential to offer greater flexibility for service providers and issuers with fewer dependencies on other ecosystem players (e.g., the MNO or owner of the SE). However, it’s only just emerging in the market. Some disadvantages include a less secure implementation (and potential to need other mitigating security approaches), support only on Android and Blackberry devices, and immature specifications. As NFC is used for an increasing number of applications, it is expected that both SE and HCE implementations will be available.

5.7 Status of NFC Technology The following content is from the Eurosmart position paper, "NFC Trends,"34 with updates from the NFC Forum and the Smart Card Alliance. The Smart Card Alliance thanks Eurosmart and the NFC Forum for their contributions.

34 http://www.eurosmart.com

5.7.1 Standards A rich set of standards has evolved supporting NFC technology and applications from global standards bodies.

5.7.1.1 GSM Association From January 2007 to November 2008, this leading association of mobile network operators published a set of four position papers, requirements documents and technical guidelines defining a functional architecture with the SIM card as the main secure element. The GSMA has notably been the first to draft the TSM (Trusted Service Manager) functional role as the cornerstone of the NFC architecture. In 2010, GSMA, in collaboration with the European Payment Council published the document, Trusted Service Manager: Service Management Requirements and Specifications, providing clarity for the TSM roles in the European market. The GSMA Requirements for SWP NFC handsets document, published in November 2008 and aimed to handset vendors, is setting the pace for most NFC handsets released in 2009. In addition, the GSMA Pay-Buy-Mobile (PBM) project defined the framework and approach for NFC- enabled mobile payments using the UICC secure element..35

5.7.1.2 NFC Forum The NFC Forum was formed in 2004 to promote the use of NFC technology in consumer electronics, mobile devices, and PCs by providing a highly stable framework for extensive application development, seamless interoperable solutions, and extraordinary security. As of April 2015, the NFC Forum has released 19 specifications. (See additional information in Section 5.2.)

5.7.1.3 ETSI ETSI, the reference standard body for mobile telephony, has been active in defining the SIM card as the standard secure element. Since 2006, ETSI has defined the Single Wire Protocol (SWP) interface between the UICC and the NFC chip and the Host Controller Interface (HCI) to act as a router protocol between the secure element(s), the mobile handset and the NFC chip. Both protocols have been through first integration and field test under the umbrella of the GSMA and leading MNOs. (The first handsets supporting SWP and HCI were released in 2006 and more than 15 handsets have been released so far.) SWP and HCI are now in a reasonable stage of maturity, still undergoing minor revisions, and have been implemented by the major SIM card and NFC chip vendors.

5.7.1.4 GlobalPlatform GlobalPlatform (GP) defined the reference protocol for secure application provisioning, remote personalization and life cycle management. The GP protocol is to be integrated in the secure element, regardless of the form factor (UICC, embedded secure element or SD-card-based secure element).

5.7.1.5 Bluetooth Special Interest Group In July 2007, the Bluetooth Special Interest Group (SIG) adopted NFC as a simplified pairing protocol (also known as out-of-band (OOB) pairing) in the Bluetooth 2.1 release. A pre-version has already been implemented by device vendors like Nokia and Parrot (for loudspeakers and picture displays). A usual Bluetooth pairing process requires up to 12 keystrokes to be completed, while NFC-enabled pairing greatly simplifies the process, requiring only one keystroke (yes/no selection).

35 http://www.gsmworld.com/our-work/mobile_lifestyle/mobile_money/pay_buy_mobile/index.htm

This specification has been complemented by the NFC Forum Connection Handover Technical Specifications.

5.7.1.6 Wi-Fi Alliance The Wi-Fi Alliance adopted NFC in January 2007 as one of the lead pairing mechanisms in its Wi-Fi Protected Set-up (WPS) requirements. NFC WPS is aiming at simplifying the pairing and security management of Wi-Fi networks. This specification has been complemented by the NFC Forum Connection Handover Technical Specifications.

5.7.2 Certification The NFC Forum has set up a certification program to certify NFC devices. This program will integrate NFC Forum digital protocol and activity specifications. Based on these specifications, NFC devices can behave as NFC reader/writers, peer-to-peer communication and card emulation devices. The NFC Forum is regularly organizing plug-fests with NFC vendors where all members can debug their early implementations. Major applications based on card emulation will need to go through a specific certification program for both the handset and the SIM (if the UICC is used as the secure element). This applies for payment and transport applications, while other applications will depend on the application vendor or service provider certification policy. Those certification processes will enforce the interoperability of the secure elements and devices coupling with the installed base of the application‘s readers. Both Visa and MasterCard propose certification programs for mobile devices embedding payment applications. Payment certification, or part of it, is likely to merge into the EMVCo certification requirements in the medium term. The situation is not as clear for transport applications as each transport authority has its own certification process. It is likely that each NFC device will have to undergo those certification processes. The secure element, whether it is the UICC, an embedded secure element or an SD card-based secure element, would be submitted to the usual security certifications for any embedded payment applications (e.g., Cast for MasterCard, Visa Risk for Visa). For the secure element, both ETSI and Global Platform propose a declarative certification process using test suites and tests tools to be published. In addition, mobile operators (e.g., Sprint) and other service providers (e.g., Isis and its partner mobile operators) will require mobile device certification.

5.7.3 NFC Device Availability NFC is now available in a wide range of mobile phones, mobile devices and consumer electronics. According to NFC World,36 over 50 manufacturers support NFC in over 200 phone models and tablets. Manufacturers currently include Acer, Asus, BlackBerry, Casio, Fujitsu, Google, HP, HTC, Huawei, Lenovo, LG, Motorola, Nokia, Panasonic, Pantech, Samsung, Sharp, and Sony. Although Apple mobile devices do not currently support NFC, NFC capability can be added to iPhones through commercially available cases and accessories. The following content is from the Smart Card Alliance white paper, "Chip-Enabled Mobile Marketing."37 While the market was waiting for wide availability of commercial NFC-enabled products, bridge products were made available that can provide NFC capabilities to current mobile devices. These bridge products were designed to help to accelerate the deployment of NFC applications by incorporating a set of NFC

36 “NFC phones: The definitive list,” NFCWorld+, May 11, 2014, http://www.nfcworld.com/nfc-phones-list/. 37 Chip-Enabled Mobile Marketing, Smart Card Alliance white paper, October 2010, http://www.smartcardalliance.org

features in currently-available mobile devices. Examples include stickers with no integration with the phone, and stickers and peripherals that integrate with the phone using a wireless protocol (e.g., Bluetooth) or using contacts (e.g., microSD card). Figure 19 illustrates the range of NFC technology implementation approaches that are being offered. The intelligence of these bridge products varies and, therefore, so do their abilities to implement different NFC applications. For example, stickers would support only a single application in card emulation mode; typical applications for a sticker are payment or loyalty program. Figure 19. NFC Technology Implementations

Device Example Characteristics

Peripherals • Unattached device that does not interact with the phone (no integration) • Include, but not limited to, key fobs • Single application

Stickers • No direct interaction with the phone (but can interact via “the (no integration) cloud”) • Inexpensive relative to other options • Single application • Single card emulation only Peripherals • Unattached device that interacts directly with the phone via (contactless integration) some protocol (e.g., Bluetooth) • Multi-application capable • Additional power source required

Stickers • Attached device that interacts directly with the phone via some (contactless integration) protocol (e.g., Bluetooth) • Various products support card emulation only; others can support full NFC

Peripherals • Attached devices utilizing a contact interface to the phone (contacted integration) • Include, but not limited to, contactless-enabled memory card devices (microSD) and SIM-based solutions • Multi-application capable • Some full NFC capable

Embedded • NFC chip set embedded in the phone at time of manufacture • Full NFC capable • Multi-application capable

6 Sample Smart Card Mobile and NFC Models

6.1 GSM and Subscriber Privacy38 According to the GSM Association, GSM is used in 218 countries and territories serving more than three billion people. GSM mobile phones include a smart card, the Subscriber Identity Module (SIM), which is configured with information essential to authenticating a mobile phone, thus allowing a phone to receive service whenever the phone is within coverage of a suitable network. Without a SIM card, a GSM mobile phone cannot function effectively (typically reduced to emergency service only). The GSM SIM cards do not contain the mobile phone user’s credentials or even their actual phone number. Anybody can use any phone, providing that they have possession of it and are in a coverage area and that the phone is able to authenticate to a network. In most instances, however, it can be assumed that the phone is being used by the authorized (and paying) subscriber. The GSM system implementation is based on device authentication rather than subscriber or individual identity authentication or verification. Connecting to a GSM network: The device authentication incorporated into the GSM implementation is well documented in various papers, books, and specifications. In brief, the issuer of the SIM card (the primary service provider for the subscriber) assigns a unique secret code and SIM identity number for each SIM. The number is maintained within the provider’s network authentication equipment. The same data is securely loaded into the corresponding SIM card at manufacture. For the network to be assured of the validity of the phone requesting service, the network equipment issues a challenge to the SIM in the phone. If the cryptographic result presented by the SIM is computed using the correct authentication algorithm, secret key, and challenge, the network equipment can verify the SIM’s authenticity. Making calls: When a GSM mobile makes calls, it uses signaling mechanisms to present the number being dialed to the network. The network then translates the signals into information relating to the International Mobile Subscriber Identity (IMSI), which is also loaded into the SIM. The IMSI is a unique representation of the SIM for any GSM network. The network equipment translates the dialed number into a corresponding IMSI when a call is being placed. This allows the network to locate the subscriber equipment (mobile or SIM) by virtue of a fixed device number, rather than a potentially complex, country- specific, and variable-length phone number. Billing: Once a GSM call is completed, the GSM network equipment generates a call duration record (CDR). The CDR, which includes the IMSI, is then transmitted to the provider’s billing system and routed to the subscriber’s account. Only the provider’s billing system can post the IMSI-based CDRs to actual subscriber accounts, thus matching a call to an individual who pays for it. Prepaid GSM: A different implementation of GSM creates total anonymity for the user. In this implementation, the user buys a phone and SIM card that is loaded with a monetary value for making calls. The user is not required to reveal any personal information to activate the service; all the user is required to provide is cash. As the user makes each call, charges are deducted directly from the available balance until all funds are consumed. Depending on the issuer, the implementation may also include the ability to reload monetary value to maintain or re-enable the service. Summary: The role of SIM cards in the GSM implementation is a good example of how the privacy of an individual is maintained while using mobile telephone service worldwide. Very restricted network equipment translates a phone number to an IMSI. The equipment cannot identify the subscriber. Only the billing system maintained by the issuer of the SIM can close the loop between a completed call and the entity that pays for the call. In the prepaid implementation, the individual is not required to provide any personal information whatsoever and no cross-reference to the user is possible.

38 Privacy and Secure Identification Systems: The Role of Smart Cards as a Privacy-Enabling Technology, Smart Card Alliance white paper, February 2003, http://www.smartcardalliance.org

6.2 NFC-Enabled Mobile Marketing The proliferation of mobile phones, especially smartphones, is driving the evolution of new mobile marketing capabilities that benefit both consumers and retailers: the ability, in real-time, to participate in interactions tailored to a consumer’s preferences and location. Early results demonstrate dramatic improvements in the effectiveness of marketing campaigns and offer redemption rates in comparison with traditional paper coupons. Multiple approaches are being tested, including mobile Web searches, barcodes or simple numeric coded coupons, text message campaigns, back-end-based loyalty programs enabled with stickers, and approaches based on NFC-enabled mobile phones. NFC-enabled mobile marketing offers great value for consumers, marketers, and banks. Consumers can be freed from carrying paper coupons and plastic cards and benefit from increased personalization, convenience, and control. Marketers, including merchants, can dramatically decrease their costs and improve targeting effectiveness, finding new ways to leverage real-time analytical data and engage customers. Banks can realize more revenue and gain better insight into their customers’ preferences.

6.2.1 NFC-Enabled Mobile Marketing Participants and Process Implementing mobile marketing is complicated by the number of new players and the requirement to integrate with many legacy systems. Merchants, consumer brands, aggregators, application providers, TSMs, and mobile network operators all collaborate to provide value exchange for consumers. Figure 15 illustrates the participants in an NFC-enabled mobile marketing value chain.

Figure 20. Participants in the Chip-Enabled Mobile Marketing Value Chain The merchant is the physical store that originates NFC transactions for payments, promotions and loyalty (for example, a retailer such as Walgreens, Starbucks, or Target). A brand is the consumer packaged goods distributed through a merchant (for example, Procter & Gamble, Coca Cola, Pepsi, or Unilever). The merchant/brand aggregator is the entity that sources, aggregates, and manages the life cycle of mobile offers from merchants and brands (for example, Access Development, Mall Networks). The application provider provides the mobile marketing application. A trusted service manager (TSM) is the entity responsible for securely distributing, provisioning, and managing the life cycle of the NFC services provided to the mobile handset. TSMs have relationships with both the mobile network operator and the application provider. NFC services include chip-enabled mobile marketing/loyalty applications. The bearer channel acts as a middleman between application providers and mobile operators (for example, Syniverse, Sybase365, or mBlox). The mobile network operator is the company that provides wireless telecommunications services and supplies NFC-enabled devices (embedded in a handset or as an accessory) to the consumer (for example, AT&T, Verizon, Sprint, or T-Mobile). The consumer is anyone who wants to consume, receive, and exchange value through the mobile channel.

The following example illustrates the role of each participant and the process flow in a chip-enabled mobile marketing application. Assumptions  The application provider has sourced offers from a merchant aggregator. The merchant aggregator has sourced several offers, including one from Red Dot Coffee.  The application provider has launched a mobile wallet application on a mobile application store that includes mobile payments and coupons.  The consumer has an NFC-enabled phone and has downloaded the mobile wallet application that interacts with the NFC chip.  The consumer opts in to receive mobile coupons and selects preferences for coupons. Process Flow 1) The consumer receives notification that a new mobile coupon for Red Dot Coffee is available; the coupon is sent over the air (e.g., $1 off any beverage) through mobile network operator. 2) Since the consumer‘s phone supports GPS, the application also shows the nearest Red Dot Coffee locations. 3) The consumer decides to redeem the offer and walks to the nearest Red Dot Coffee location. 4) At the location, Red Dot Coffee has a smart poster with a special offer for sandwiches (e.g., $2 off any sandwich). 5) The consumer taps the NFC phone to the poster and downloads this coupon too. 6) At checkout, the consumer taps the phone on the contactless POS terminal to pay and redeem the two coupons ($1 off coffee and $2 off sandwich). 7) Red Dot Coffee deducts $3 from total amount and processes the transaction. Standards for interoperability within the marketing ecosystem are not as mature as payment standards and will likely conform to GlobalPlatform standards. Of particular interest is the standardized interface between mobile marketing and contactless payments. Ideally, mobile marketing and contactless payments should be tightly linked to drive consumer adoption. The evolution of capabilities available on mobile devices, such as cameras, speakers, accelerometers, and Wi-Fi, creates even more opportunities, but it will be critical for the mobile phone's NFC functions to be able to interface with these capabilities to take advantage of them.

6.2.2 Security and Mobile Marketing Mobile marketing applications must be evaluated carefully for security requirements. This evaluation should also include any ancillary payment functions, such as authorizing or executing the actual payment; storing, passing, or handling the payment credentials; and authenticating the authorized person holding or invoking the payment credentials. In general, application security should be considered when development and implementation planning begin, not later, as an afterthought, which could leave room for the unintended consequences of accidental use or intentional misuse. Appropriate security is particularly important for applications used to enable mobile marketing tools that generate or manage incentives, such as:  Product-specific or merchant-specific coupons  Offers such as two-for-one item purchases or “buy two get one free”  Loyalty or club cards that allow customers to collect and redeem points for cash value, product, or awards At a high level, security for these incentives can be classified as:  No security

 Basic security  Hardened security An application with no security means that the coupon or offer can be duplicated with little or no effort (which may be the intent of the program). No security lends itself to viral-type programs geared to allow or encourage consumers to forward the incentive to others. In an application with basic security, the incentive cannot be duplicated or reproduced easily, making it economically impractical to attempt fraud. The associated risk assessment assumes that if fraud is attempted and successful, limited liability or acceptable minimal loss will occur. A more important factor in the risk assessment would be the effect on public perception resulting from successful fraud attempts. An application with hardened security provides a marketing incentive with a high level of encryption and with several levels of security protections, including storage of the incentive itself in the mobile device’s secure element. Incentives protected by hardened security are considered to be as secure as payment credentials and the payment applications themselves. For security purposes, the application that manages all incentives (such as a mobile wallet) should be fully or partially stored in the mobile device’s secure element. Since the secure element has limited memory, incentives at the no security and basic security levels can stored outside of the secure element, in the mobile device’s base memory. Incentives using basic security are encrypted, but the encryption key needed to unlock and activate the incentive would be stored in the secure element and accessible only to the incentive management application. This key consumes very little memory, allowing potentially hundreds of basic security incentives to be stored in a mobile device.

Application Placement

NFC Capable No Security Phone Memory Options • Stored in phone memory

Basic Security Secure Phone • Encrypted with key and Element Memory stored in phone memory • Key stored in Secure Element Hardened Security • Stored in Secure Element

Secure Element can be embedded or removable

Figure 7. NFC-Enabled Phone Secure Element and Application Security

7 Relevant Standards and Specifications Numerous standards are relevant to smart card applications and more are created every year. They have various impacts at different levels of a smart card based-system and may deal with physical characteristics, security certifications, transmission protocols, and application loading or design. There are also industry "specifications," which are not "standards," but which play a very important role in smart card applications. Not all application specifications are listed in this section, though some of the important industry-focused applications are included. Standards are voluntary, but are generally adhered to in the interest of achieving conformity and interoperability. A brief synopsis of the various smart card standards and specifications is included in this section. Additional information can be found in the body of work referenced with each smart card standard or specification. ISO/IEC is the worldwide standard-setting body for technology, including plastic cards. These standards set minimums, but also include many options and tend to leave some issues unaddressed. As a result, conformance to ISO standards alone does not necessarily ensure interoperability – nor does it ensure that cards and terminals built to the specifications will interoperate. The main standards that pertain to smart cards are ISO/IEC 7810, ISO/IEC 7816, ISO/IEC 14443, ISO/IEC 15693, ISO/IEC 24727 and ISO/IEC 7501. The following should be noted: 1. Some standards listed below are available free of charge, but many must be purchased. 2. Some standards may not be listed in this section, but could be relevant to a specific application or a specific technique required by an implementation (e.g., standardized format of biometric information). This section contains a list of standards and specifications relating to this module. A more complete listing of standards and specifications, with descriptions of each, can be found in Module 1.

7.1 Standards Relevant to Smart Card Physical Characteristics  ISO/IEC 7810 – Identification Cards – Physical Characteristics  ISO/IEC 7816 – Identification Cards – Integrated Circuit Cards39 7.2 Standards and Specifications Relevant to Technologies Related to the Card Interface  ISO/IEC 7816 Series – Identification Cards – Integrated Circuit(s) Cards with Contacts  ISO/IEC 14443 Series – Identification Cards – Contactless Integrated Circuit(s) Cards – Proximity Cards  ISO/IEC 18092 – Information technology – Telecommunications and Information Exchange between Systems – Near Field Communication – Interface and Protocol

7.3 Standards and Specifications Relevant to the Card Commands and Application Data Structures  ISO/IEC 7816 Series – Identification Cards – Integrated Circuit(s) Cards with Contacts  GlobalPlatform  Java Card

39 Source: http://www.iso.org

7.4 Standards and Specifications Relevant to Issuers or Specific Industry Sectors  European Telecommunications Standards Institute (ETSI) - GSM. ETSI TS 100 977: "Digital cellular telecommunications system (Phase 2+) (GSM)." - NFC. ETSI TS 102 10 V1.1.1 (2003-03)) "Near Field Communication (NFC) IP-1; Interface and Protocol (NFCIP-1)" - ETSI TS 102 221 V9.2.0 (2010-10), “Smart Cards; UICC-Terminal interface; physical and logical characteristics” - ETSI TS 102 484 V10.0.0 (2011-01), “Smart Cards; Secure channel between a UICC and an end-point terminal” - ETSI TS 102 600 V10.0.0 (2010-10), “UICC-Terminal interface; Characteristics of the USB interface” - ETSI TS 102 613 V9.2.0 (2011-03), “UICC – Contactless Front-end (CLF) Interface; Part 1: physical and data link layer characteristics” - ETSI TS 102 671 V9.1.0 (2011-09), “Smart Cards; Machine to Machine UICC; Physical and logical characteristics”  ECMA International - ECMA-340: NFCIP-1 Interface and Protocol (now ISO/IEC 18092) - ECMA-352: NFCIP-2 Interface and Protocol (now ISO/IEC 21481) - ECMA-356: NFCIP-1 RF Interface Test Methods (now ISO/IEC 22536) - ECMA-362: NFCIP-1 Protocol Test Methods (now ISO/IEC 23917)  NFC Forum

8 References 3GPP, http://www.3gpp.org The Case for Using Mobile Phones for Payments, Deloitte & Touche report, August 2004 Chip-Enabled Mobile Marketing, Smart Card Alliance white paper, September 2010, http://www.smartcardalliance.org Essentials for Successful NFC Mobile Ecosystem, NFC Forum white paper, October 2008 ETSI Technical Standard 100 977 V8.14.0 (2007-06), Digital cellular telecommunications system (Phase 2+); Specification of the Subscriber Identity Module - Mobile Equipment (SIM-ME) Interface, (3GPP TS 11.11 version 8.14.0 Release 1999) Eurosmart, ”Providing Trust and Security Is Key for a Successful Mobile Lifestyle in the Hyperconnected World of 2020, Nov. 4, 2014, http://www.eurosmart.com/publications/market-overview Fundamentals of NFC, Reid Holmes, INSIDE Secure, Smart Card Alliance Contactless Payments Workshop, 2012 Payments Summit, February 7, 2012 GSM Association, Market Data Summary, August 7, 2009, http://www.gsmworld.com/newsroom/market- data/market_data_summary.htm GSM Technology: LTE, GSM Association, http://gsmworld.com/technology/lte.htm#nav-6 Host Card Emulation (HCE) 101, Smart Card Alliance white paper, August 2014, http://www.smartcardalliance.org/publications-host-card-emulation-101/ The Keys to Truly Interoperable Communications, NFC Forum white paper IDATE forecasts NFC phones and payments volumes, NFC World, July 15, 2014, http://www.nfcworld.com/2014/07/15/330373/idate-forecasts-nfc-phones-payments-volumes/ Juniper Research: Apple Pay and HCE to push NFC payment users to 516M by 2019, FierceWireless, October 29, 2014, http://www.fiercewireless.com/europe/story/juniper-research-apple-pay-and-hce-push- nfc-payment-users-516m-2019/2014-10-29 NFC phones: The definitive list, NFC World, http://www.nfcworld.com/nfc-phones-list/ LTE, UICC and the Future of Mobile Communications, Gemalto.com, Jean-Louis Carrara The Mobile Payments and NFC Landscape: A U.S. Perspective, Smart Card Alliance Payments Council white paper, September 2011, http://www.smartcardalliance.org/pages/publications-the-mobile-payments- and-nfc-landscape-a-us-perspective Mobile Retailing: A Comprehensive Guide for Navigating the Mobile Landscape, National Retail Federation white paper, July 2010, http://www.nrf.com/modules.php?name=Documents&op=viewlive&sp_id=5122 Near Field Communication (NFC) Forum, http://www.nfc-forum.org NFC Forum Technical FAQ, http://www.nfc-forum.org/resources/faqs/ NFC Transaction Market (47%) and NFC Enabled Handsets (55%) 2019 Growth Forecasts in New Global Research Reports, http://www.prnewswire.com/news-releases/nfc-transaction-market-47-and-nfc- enabled-handsets-55-2019-growth-forecasts-in-new-global-research-reports-285591571.html NFC Trends, Eurosmart position paper, October 2009, http://www.eurosmart.com/images/doc/WorkingGroups/e-ID/Papers/ecc-position-paper-final.pdf One Year after Launch, NFC Forum Membership hits 70 Organizations Worldwide, NFC Forum press release, February 22, 2006 Phones as Credit Cards? Americans Must Wait, The New York Times, January 25, 2009

Privacy and Secure Identification Systems: The Role of Smart Cards as a Privacy-Enabling Technology, Smart Card Alliance white paper, February 2003, http://www.smartcardalliance.org Proximity Mobile Payments: Leveraging NFC and the Contactless Financial Payments Infrastructure, Smart Card Alliance white paper, September 2007, http://www.smartcardalliance.org Proximity Mobile Payments Business Scenarios: Research Report on Stakeholder Perspectives, July 2008, http://www.smartcardalliance.org Reference Material for Assessing Forensic SIM Tools, Wayne A. Jansen, Aurelien Delaitre, National Institute of Standards and Technology, Paper No. ICCST 2007-74, http://csrc.nist.gov/groups/SNS/mobile_security/documents/mobile_forensics/Reference%20Mat-final- a.pdf Security of Proximity Mobile Payments, Smart Card Alliance white paper, May 2009, http://www.smartcardalliance.org SIM Toolkit, Gemalto, http://www.gemalto.com/techno/stk/ Universal Access, GSM Association report, http://gsmworld.com/documents/universal_access_full_report.pdf Verizon Wireless Fosters Global LTE Ecosystem as Verizon CTO Dick Lynch Announces Deployment Plans, Verizon Wireless Inc. news release, Feb. 18, 2009, http://news.vzw.com/news/2009/02/pr2009-02- 18.html What is a UICC and how is it different from a SIM card?, Just.AskGemalto.com, http://www.justaskgemalto.com/en/communicating/tips/what-uicc-and-how-it-different-sim-card

9 Acknowledgements This document was developed by the Smart Card Alliance for the Certified Smart Card Industry Professional (CSCIP) program. Publication of this document by the Smart Card Alliance does not imply the endorsement of any of the member organizations of the Alliance. The Smart Card Alliance thanks the NFC Forum for their permission to reprint the content in Section 5 and for their review of Section 5. The Smart Card Alliance thanks Eurosmart for their permission to reprint content from the Eurosmart position paper, NFC Trends. The Smart Card Alliance thanks the following individuals and organizations for their review of this CSCIP module:  Philippe Benitez, Gemalto  Jeff Fonseca, NXP Semiconductors  Reid Holmes, NXP Semiconductors  Rajesh Sharma, NXP Semiconductors  Ray Wizbowski, Gemalto The Smart Card Alliance thanks Mike Smith, Montner and Associates, for contributing Section 3, Mobile Telecommunications, and Section 4, UICCs. The Smart Card Alliance thanks Gemalto for permission to reprint the graphic in Figure 2. The Smart Card Alliance wishes to thank the many current and past members of the Smart Card Alliance Councils and Task Forces who contributed to the development of the white papers and reference material that was used to create this module. About LEAP and the CSCIP Program The Smart Card Alliance Leadership, Education and Advancement Program (LEAP) was formed to: offer a new individual members-only organization for smart card professional; advance education and professional development for individuals working in the smart card industry; manage and confer, based on a standardized body-of-knowledge examination, the Certified Smart Card Industry Professional (CSCIP) designation. LEAP members who wish to achieve certification as experts in smart card technology may do so at any time. Certification requires that LEAP members meet specific educational and professional criteria prior to acceptance into the certification program. A series of educational modules forming the CSCIP certification body of knowledge has been developed by leading smart card industry professionals and is updated regularly. These educational modules prepare applicants for the multi-part CSCIP exam administered by the Smart Card Alliance. The exam requires demonstrated proficiency in a broad body of industry knowledge, as opposed to expertise in specialized smart card disciplines. Applicants must receive a passing grade on all parts of the exam to receive the CSCIP certification. LEAP membership in good standing is required to sustain the certification, and documentation of a required level of continuing education activities must be submitted every three years for CSCIP re- certification. Additional information on LEAP and the CSCIP accreditation program can be found at http://www.smartcardalliance.org.

Trademark Notice All registered trademarks, trademarks, or service marks are the property of their respective owners.