09 January, 2004
category: Contactless, Education, Financial, NFC
Universal Music France Working with Philips and Visa International to Demonstrate Exciting New Applications
Las Vegas, Nevada-January 8, 2004 -Royal Philips Electronics (AEX: PHI,
NYSE: PHG) and Visa International have joined forces to show how the
latest contactless technology can change the way digital content and
services are distributed, paid for and accessed by today’s universally
connected consumer.
Following the announcement of an alliance between the two companies in
May last year, Philips and Visa International have been exploring the
market by proposing demos and concepts across different industries –
including communications, consumer electronics, computing and digital
content providers. The two organizations are showcasing proofs of
concept at the Consumer Electronics Show (CES) in Las Vegas that
demonstrate the power of breakthrough technologies, such as Philips’
Near Field Communication (NFC) technology and Visa’s Verified by Visa,
an authentication service based on the industry standard 3-D Secure,
which enables Visa cardholders to safely shop online using a unique
password. They show how value-add platforms can deliver rich and varied
content in innovative ways.
“Each of Visa’s regions evolves differently reflecting unique local
operating environments and market demands. Visa International is fully
committed to providing secure payment options that are tailored to the
changing needs of our member financial institutions, merchants and the
evolving lifestyles of their customers,” said Gaylon Howe, executive
vice president, Consumer Product Platforms, Visa International. “Both
Visa International and Philips share a vision of secure universal
commerce and connectivity, whereby consumers can access and pay for
physical and digital services anywhere, at any time, using any device.”
“As we move into the roll-out phase of NFC technology, we are proud to
present showcases which represent the first step in providing people
with secure access to attractive content using their mobile devices as
the central element,” said Scott McGregor, president and chief executive
officer, Philips Semiconductors. “It is also a great example of how
three major players with complementary capabilities can collaborate to
bring a vision to life and new services to the market.”
The two organizations are showcasing proofs of concept at CES,
highlighting the unique value derived from combining the latest consumer
electronics, wireless connectivity and secure, universal payment. In one
scenario, music lovers can download the right to listen to a song to
their PDA or their Visa payment card either by holding the PDA near a
smart poster of their favorite Universal Music pop star or by holding
their contactless Visa card near a store kiosk selling songs. The smart
poster contains an embedded microchip that sends the information to the
PDA using Philips’ Near Field Communications (NFC) technology. Payment
is easy and secure using the Verified by Visa solution and the song
rights can be stored utilizing Visa Smart Secure Storage (VS3). The
kiosk is enabled with RFID technology to capture payment information
from the card and transfer the rights to be stored in VS3. In both
cases to hear the song, the user simply transfers the song rights to a
Philips Streamium Internet radio using NFC, and the song is then played
over the Internet. Other scenarios demonstrate ticketing and travel
applications.
Among the partners working with Philips and Visa International is
global entertainment company Universal Music France. “Universal Music
France is delighted to work with Philips and Visa as they both share our
belief that content should be securely and easily available in any form
- physical or digital – to anybody, in any environment using a flexible
pricing plan. The ability for users of Universal Music France’s E-Compil
music portal to access multi-rich services through any channel on any
device is central to our vision for the future of the entertainment
industry,” said Pascal Nègre, President of Universal Music France.Having demonstrated the technical concept of these applications,
Philips and Visa International will continue to assess market demand,
and develop stakeholder business cases that reflect the deployment
opportunities and challenges within various global markets.Philips will be showcasing the proofs of concept at the 2004
International Consumer Electronics Show in Las Vegas (January 8-11,
2004). In addition to the demo mentioned in the release, the animated
proofs of concepts presented at the show are as follows:
· Ticketing: Mobile phone users can pay for concert or movie
tickets at the box office simply by holding their phone next to the
payment terminal. The contactless chip in the phone transfers Visa
payment data to the terminal and, once payment is confirmed, sends the
tickets back to the phone. The phone user can then transfer a ticket
using NFC to a friend’s mobile phone. Payment is made by a new Visa
person-to-person payment concept. Once at the venue, both ticket
holders can use their phones to gain access and may also receive an
electronic discount coupon for an on-site merchant.
· Travel: Travelers can book and pay for airline tickets and hotel
rooms using their home PC, an NFC enabled mouse and a contactless Visa
payment card. The tickets and airline information are transferred from
the PC to the Visa card using NFC and stored on the card’s chip using
Visa Smart Secure Storage. The card is then used for airline check-in,
to board the flight and to check-in at the hotel. The hotel room key can
be transferred to the traveler’s mobile phone using NFC and the phone
can then be used to access the room. On departure, the hotel can
transfer a receipt to the phone and, once at home, the traveler can
transfer the receipt from the phone to a PC for expense reporting – all
made possible by NFC.
About Near Field Communications (NFC)
Near Field Communication (NFC) – standardized in ISO 18092 – is an
interface technology for exchanging data between consumer electronic
devices, like PCs and mobile phones, at a distance of typically 10
centimeters. It operates in the 13.56MHz frequency range. As
NFC-compliant devices are brought close together they detect the other
device and begin to determine how they can interact in terms of
transferring data. For example, bringing a NFC-enabled camera close to a
TV fitted with the same technology could initiate a transfer of images,
while a PDA and a computer will know how to synchronize address books or
a mobile phone and a MP3 player will be able to initiate the transfer of
music files. Using NFC, consumers can quickly establish wireless links
between devices. It provides a more natural method for connecting and
interacting with devices, broadening the scope of networking
applications.
About Verified by Visa
Verified by Visa is Visa’s payment authentication service that gives
online customers an even more secure online shopping experience.
Verified by Visa gives online cardholders more control over when and
where their cards are used; reduces the potential for unauthorized use
on the Internet; and increases consumer confidence in online shopping.
With Verified by Visa, cardholder identity is confirmed with the use of
a personalized password during the checkout process. In a matter of
seconds, a cardholder’s bank validates the password, thus deterring
unauthorized use. Verified by Visa, together with Visa’s global Account
Information Security program, serve as cornerstone programs to make the
Internet secure for shoppers and merchants.
About Royal Philips Electronics
Royal Philips Electronics of the Netherlands is one of the world’s
biggest electronics companies and Europe’s largest, with sales of $30.1
billion (EUR 31.8 billion) in 2002. It is a global leader in color
television sets, lighting, electric shavers, medical diagnostic imaging
and patient monitoring, and one-chip TV products. Its 166,500 employees
in more than 60 countries are active in the areas of lighting, consumer
electronics, domestic appliances, semiconductors, and medical systems.
Philips is quoted on the NYSE (symbol: PHG), Frankfurt, Amsterdam and
other stock exchanges. News from Philips is located at:
www.semiconductors.philips.com.
About Visa
Visa is the world’s leading payment brand generating US$2.7 trillion in
annual card sales volume. Visa has unsurpassed acceptance in more than
150 countries. The Visa organization plays a pivotal role in developing
innovative payment products and technologies to benefit its 21,000
member financial institutions and their cardholders. Visa is a leader
in Internet based payments and is pioneering the creation of u-commerce,
or universal commerce-the ability to conduct commerce anywhere, anytime,
and any way. For more information, visit www.corporate.visa.com.
Near Field Communications News and InsightExplore more developments dealing with the implementation of Near Field Communications, a short-range wireless technology that promises to revolutionize contactless identification, payment, access, and more. Click to visit NFCNews.
