HEADLINE NEWS

Taiwan Chip Company Supplies NFC Technology to Low-Cost Phone Maker

Taiwan-based chip maker MStar Semiconductor announced today it is supplying NFC technology to Russia-based phone maker Fly for one or more handsets for the European market to be released as early as next month.

Austrian Bank Announces Plans to Launch Mobile-Payment Service with microSDs and iPhone

Jan 30 2012 (All day)

Raiffeisen Bank International, one of Austria’s largest banks, is planning to launch contactless-mobile payment with microSD cards and an iPhone attachment.

Samsung Confirms NFC Chip in Galaxy Note, though NFC Version Already Shipping in Korea

Samsung Electronics has confirmed it has an NFC version of its Galaxy Note, though that comes as no surprise to operators in South Korea, which have been selling the tablet-smartphone hybrid with NFC inside for about two months.

Inside Secure Releases New Android NFC Stack; Accuses NXP of Monopolizing Market

NFC chip supplier Inside Secure has released a new version of its NFC software stack, as it seeks to break rival NXP Semiconductors’ dominance of the market for NFC chips in Android phones.

Microsoft Requires ‘Visual Mark’ for Windows 8 Devices Supporting NFC

Microsoft is requiring device makers to include a “visual mark” for tablets and PCs supporting NFC and running the software giant’s forthcoming Windows 8 operating system.

Japan’s KDDI Announces Plans for Small NFC Launch with Galaxy S II

Jan 17 2012 (All day)

Japan’s second largest mobile operator, KDDI, said it would launch Japan’s first mobile NFC service late this month with the Samsung Galaxy S II–though the service will start out small because of the lack of phones that support both standard NFC and Japan's proprietary FeliCa technology, as well as Japan's nearly nonexistent infrastructure of standard contactless readers.

Spanish Bank Plans To Turn Barcelona into Contactless-Payment City

Large Spanish retail bank La Caixa will begin rolling out 1 million contactless cards along with more than 15,000 point-of-sale terminals and 500 contactless ATMs in Barcelona this month.

GlobalPlatform and SIMalliance Seek to Build ‘De Facto Standard’ for Accessing Secure Elements

Jan 12 2012 (All day)

The SIMalliance trade group and GlobalPlatform standards organization say they are working on what they predict will become a “de-facto standard” for the way apps on NFC phones communicate with secure elements.

Sony Unveils Pair of Android NFC Phones and ‘SmartTags’

Sony Ericsson has announced two NFC-enabled Android smartphones and NFC tags for its Xperia series, touting NFC as enabling consumers to share content, as well as “an increasing number of NFC applications.”

Visa Announces Certification of Six NFC Phone Models for SIM-based payWave

Jan 11 2012 (All day)

Visa has announced its first certifications of NFC phones, approving six models to run its contactless application, payWave, on SIM cards.

Intel, HP Signal Plans for Supporting NFC on Ultrabooks

Jan 11 2012 (All day)

U.S.-based Intel, as expected, is planning to incorporate NFC technology into chip designs for future ultrabook computers, the vice president and general manager of the chip maker’s PC group said Monday.

Sprint Announces Two New NFC Phones Supporting Google Wallet

U.S. mobile carrier Sprint has announced two more phones supporting the Google Wallet, including Google’s new Android smartphone, the Galaxy Nexus.

Gemalto

Headquarters: 
France

Since its creation in 2006 from the merger of the two largest smart card makers at the time, Gemalto has billed itself as “the world leader in digital security.”

That motto is a bit grandiose given that Gemalto still mainly sells only smart cards.

But while security is the chief role of smart cards, Gemalto is seeking to go well beyond these commoditizing hardware tokens to provide software and services to secure transactions on mobile phones, PCs and other devices, as well as the networks that connect them.

The vendor is seeking double-digit growth in its small share of revenue from the software and services. Toward that end, the vendor has been busy making some small to medium-size acquisitions. For example, in the latter half of 2009, it assumed full ownership of France-based Trusted Logic, which among other things has developed software to secure payment and peer-to-peer services in future NFC phones supporting Java or Android operating platforms.

Like other companies that have formed trusted service management units the past few years, Gemalto has been hoping to supply secure downloads and application management to phones, especially to SIM cards, for mobile operators, banks and other NFC service providers.

That opportunity has yet to pan out because of the delay in rollouts of NFC services. But when the rollouts gear up, Gemalto hopes to build on its global relationships with mobile operators, to which it provides SIM cards and over-the-air platforms for the cards; as well as with banking, transport and ID card issuers.

It already has contracts to serve as trusted service manager, or TSM, for French bank Crédit Mutuel and French rail operator SNCF, among some others. But the vendor was premature in announcing it would serve as TSM for the rollout of NFC services with Taiwanese telco Taiwan Mobile in 2008.

Gemalto also expects to supply SIM cards supporting the standard single-wire protocol, or SWP, connection to the NFC chip in mobile phones. Axalto, which merged with Gemplus International to form Gemalto, developed the earliest version of the SWP a few years ago.

Just how much Gemalto can use its dominant position in the smart card industry to sell additional NFC software and services remains to be seen.

Key figures: 
Revenue 2009 Change
Mobile communication 888.1 -6.3%
Secure Transactions (banking) 441.4 -.3%
Security (ID) 248.1 14.9%
Totals* 1,654 -1.5%
In millions of euros  *Includes other revenue, such as POS terminals.
Financial Results 2007 2008 2009 Change
Revenue 1,631 1,680  1,654 -1.5%
EBIT 84 169 170.6  1%
Net Profit 89 153 148.1  -3.2%
In millions of euros
Percent change represents 2009 vs. 2008
Smart Card Shipments H1 2009 H1 2008 Change
SIM Cards 529 511 4%
Secure Transactions* 158 147 7%
Security (ID) 26 22 16%
Totals 713 680 5%
In millions  *Mostly banking cards
Source: Gemalto
Key NFC Personnel: 
Philippe Vallée, EVP for telecom
Rémi De Fouchier, SVP, trusted services management
Major NFC and Contactless competitors: 

Oberthur Technologies, Giesecke & Devrient, Sagem Orga

Last Updated: 
Jan 2010
Author: 
Balaban