IEEE Technology and Society Magazine - Fall 2013 - 26

Solution1
Infra X

Device

Infra Y

NFC
Infra X
Card Y
Card Z

Infra Z
Solution2

Infra Y
Infra Z

Infra X

Device
NFC

Infra Y
Infra Z

Fig. 3. NFC security and network infrastructure.

getting a bigger piece of the NfC mobile payment
pie, mobile network operators, card firms, and operating system players (Google and Apple) will compete
fiercely for control of consumer databases, infrastructure, and secure elements. Therefore, to succeed with
NfC, all of these groups must form partnerships to
build a complete infrastructure and share their consumer application experience.
Adjusting Service Provider Conflict:
The Role of Trusted Service Manager
Industry convergence creates challenges because of
difference in technology and business style. NfC is
no exception, and conflict is likely to arise between
mobile network operators and financial enterprises.
The trusted service manager (TSM) concept was
devised to resolve the conflict. The TSM manages
services and prohibits service access by firms other
than the designated mobile card firm using a security
module. Applications such as mobile payment must
ensure that private information (e.g., credit card number, password, and date of expiry) is not leaked when
downloaded to the phone. The TSM enhances security
measures to prevent information leakage. Cooperation
between players is necessary for the commercialization of NfC [11], and TSM is a new business model
that fosters trust and cooperation.
Mobile commerce firms entrust information management to a TSM, and the TSM manages the given
information, acting as an agent by providing service
application, and issuing and activating the application. Specifically, the TSM is an agent that processes
requests (e.g., issuing mobile cards, updating information, suspending a transaction, and closing accounts)
from an operator through that operator's wireless network. To process the requests, the TSM creates and
manages pertinent data.
26

A TSM is a neutral player in the convergence network. As the TSM manages consumer and payment
information, operators and financial enterprises will
be able to cooperate. The TSM is expected to mediate conflicting interests, especially between mobile
network operators and financial enterprises. On the
other hand, who emerges as the market leader may
depend on who plays the role of TSM, as a certified
TSM solution can resolve the complex ecosystem of
technology and business.
SK C&C is a TSM firm in Korea and has formed
a partnership with first Data Corporation (fDC), an
electronic payment-processing firm with about 40%
of the U.S. payment market, to enter the mobile commerce market in North America. SK C&C will provide, in conjunction with fDC, TSM services for
Google Wallet. A certified TSM solution can induce
a diffusion of mobile commerce service and play the
role of supplementary service provider in the NfC
business model. TSM competences will activate the
successful commercialization for NfC technology.
Satisfying Consumer Needs: Complete
Security for Smart Payment
NfC is fundamentally a multidisciplinary technology,
and consumer needs must be considered in its applications [12]. A convergence technology that does not
reflect consumer needs is difficult for consumers to
adopt and is limited in terms of technology diffusion.
The first problem to solve is consumers' security
concerns about NfC. Security itself can be a driver for
the NfC market, as end users may be able to activate
password protection remotely in case of smartphone
theft. To provide ideal NfC service, it is compulsory
to implement chips with security features (e.g., Micro
SD, SIM, USIM, and NfC Chip) and an NfC controller. NfC devices must have safe storage for files
IEEE TECHNOLOGY AND SOCIETY MAGAZINE

fALL 2013

Table of Contents for the Digital Edition of IEEE Technology and Society Magazine - Fall 2013