RFID News Roundup

By Beth Bacheldor

Lexus partners with MyDealerLot to implement RFID-enabled customer-service solutions; Radiant RFID releases RFID-enabled first-responder location reporting for 2013 hurricane season; item-level tagging fuels global RFID market, Frost & Sullivan says; Oberthur Technologies' NFC SIM cards to carry HID Global's Seos digital keys; NSA approves wireless sensor design that could help protect nuclear facilities; association promoting microSD format announces support for Near Field Communication RFID; Gartner lowers forecast for NFC-based mobile-payment transactions.

The following are news announcements made during the past week by the following organizations: MyDealerLot; Radiant RFID; Frost & Sullivan; Oberthur Technologies and HID Global; the National Security Agency and Savannah River National Laboratory; SD Association; and Gartner.

Lexus Partners With MyDealerLot to Implement RFID-enabled Customer-Service Solutions
MyDealerLot (MDL) has announced that Toyota's Lexus division has selected its RFID-enabled suite of customer-service and support solutions for use by Lexus' U.S. dealerships. With MyDealerLot, the dealerships can automatically identify every car arriving at their sites for service or washing, as well as loaner vehicles being returned to the dealership. MDL's Automated Customer Recognition & Messaging System includes Alien Technology's Squiggle passive EPC Gen 2 RFID tags and ALR-9900+ readers, as well as plasma screens to display information regarding customers who have arrived or are scheduled for service, and software to manage that data. The system also tracks inventory onsite, as well as at remote, off-site lots, in addition to a dealer's car-wash operations. For example, the technology can identify when a customer or loaner vehicle is entering or exiting the car wash, and transmit a message to the assigned employee. It can automatically push car-wash completion notices to displays in lounges, in order to alert customers waiting there. According to MDL, the system can enhance sales operations as well, by notifying sales advisors of a customer's arrival, via integrated e-mail and text alerts that include embedded links to sales analytics and basic deal information, including payment information and lease end. "Providing truly personalized and memorable service has always been a Lexus priority," said Don Fordiani, Lexus' national field and dealer operations manager, in a prepared statement. "MDL provides real world tested technologies that allow our dealers to implement a new way to interact with our customers both in sales and service." MDL's system is currently in use at other dealerships, including Fields Automotive Group, which installed the RFID-based solution at all of its 10 Chicago and Southeast U.S. locations (see 10 Fields Automotive Dealerships to Adopt RFID) and others (see Car Makers Steer Toward RFID).

Radiant RFID Releases RFID-enabled First-Responder Location Reporting for 2013 Hurricane Season
Radiant RFID has updated its All Hazard Response Network (AHRN) platform—an RFID-based emergency-management system designed to help first-responders during disasters—with a new module to automate check-ins for responders and their locations during an emergency or major event. The Radiant RFID AHRN Responder Module consists of industry-standard ultrahigh-frequency (UHF) Gen 2 RFID badges for all personnel, smart device technology, and software that manages the collected data. Mobile RFID readers can be deployed, and can share information with smart devices such as Apple iPads or Android mobile devices. According to Radiant RFID, incident commanders will be able to monitor all responders' locations and manage assignments, as recommended by the National Incident Management System (NIMS), formulated by FEMA. The mobile readers can detect the presence of responders equipped with RFID badges to within 25 feet. The data collected can also be shared to offsite agencies via the Internet, in order to coordinate responses with local, regional and state emergency operation centers. The AHRN software is able to generate reports (for example, responder movement history, responders by agency and work-time), which can then be utilized for demobilization and reimbursement purposes. According to Radiant RFID, the solution is suitable for such large-scale response scenarios as hurricanes, disasters and wildfires, as well as for large-scale events planned in advance—the Super Bowl, for instance. The AHRN Responder Module is designed to replace current, manual check-in and location-assignment activities. According to the company, AHRN has been used during hurricanes Alex, Ike, Gustav, Rita and Sandy, and has successfully aided the statewide evacuation and reunification of more than 45,000 evacuees with their loved ones since 2005. Radiant RFID's RFID-enabled tracking solutions are presently being used by Bayer HealthCare (see RFID News Roundup: Bayer HealthCare Awards Employee Evacuation Project to Radiant RFID) and Chicago Public Schools (see RFID News Roundup: Chicago Public Schools to Implement RFID for Tracking Assets ).

Item-Level Tagging Fuels Global RFID Market, Frost & Sullivan Says
The global market for passive RFID technologies was valued at more than $2.98 billion last year, and is estimated to reach $11.58 billion in 2018, according to a new study from market research firm Frost & Sullivan. The market covers all frequencies used by passive RFID tags, and includes revenues from hardware, software and systems-integration services. The study identifies a variety of benefits from passive RFID tags, such as improved inventory management and operational efficiency, reduced labor, enhanced supply chain visibility, increased information accuracy, higher sales and better customer service—benefits that Frost & Sullivan says have spurred the technology's adoption in various applications across numerous vertical markets. The retailer sector, specifically in North America and Europe, is expected to be the largest contributor to the market's growth, with increased implementations of item-level tagging. In other regions, Frost & Sullivan reports, Latin America and India are expected to offer huge potential for RFID growth across various industries. The regions expected to generate the largest revenue by 2018 are the Americas, with $5.3 billion, and Europe, the Middle East and Africa (EMEA), with $3.5 billion.

Oberthur Technologies' NFC SIM Cards Carry HID Global's Seos Digital Keys
Oberthur Technologies has announced that its dragonFly Near Field Communication (NFC) subscriber identity module (SIM) cards will offer support for HID Global's Seos digital keys. Seos, a technology that transforms NFC-enabled mobile phones into keys that can unlock doors, has been tested for several years, and utilizes HID Global's iClass SE RFID readers and iClass credential software (see ASSA ABLOY Creates NFC Solution that Uses Phones to Open Doors, Grant Computer Access). Seos includes standards-based smart-card technology with state-of-the-art cryptography for maximum interoperability and security, the company reports, and the Seos Trusted Service Manager securely manages Seos digital keys on NFC mobile devices. The partnership enables the Seos digital keys applet to be embedded in Oberthur Technologies' NFC SIM cards, making it possible to use NFC smartphones for a wide range of applications that typically reside on smart cards. Oberthur Technologies´ dragonFly product family is a new generation of NFC SIM cards that, according to the company, are faster and include best-in-class certifications (Common Criteria EAL4+, MasterCard, Visa and Mifare DESFire) and integrated anti-virus protection. The dragonFly card is designed to support applications driving NFC deployments, such as transport, payment and access control, as well as those facilitating a more convenient user experience, such as the use of a mobile phone for hotel check-in and room access.

NSA Approves Wireless Sensor Design That Could Help Protect Nuclear Facilities
The U.S. Department of Energy's Savannah River National Laboratory (SRNL) has collaborated with the National Security Agency (NSA) to develop a wireless network that provides the necessary security controls for the transmission of classified data. The new, secure design—the culmination of a project launched four years ago—could be used to wirelessly network sensors across the Savannah River Site (SRS), which includes not only the lab but also facilities for processing and storing nuclear materials in support of the national defense and U.S. nuclear non-proliferation efforts. In addition, the SNRL says, such wireless network sensors could be deployed at other nuclear sites and federal agencies and critical manufacturing plants across the nation. According to the Savannah River National Laboratory, the NSA has now approved the prototype hardware for use in certain classified communication operations. The approved hardware includes the components of a prototype, standalone wireless system for use in nuclear facilities to monitor radiation in the air, that combines radiation-sensing technologies with an ultra-secure short-range wireless network from General Dynamics, which was contracted by SNRL to develop the components for the wireless system. The second phase of the project, slated to commence during fiscal year 2013, will develop an improved production-ready wireless sensor interface module. Radiation monitoring in nuclear facilities is essential for operating the equipment safely and protecting personnel, SNRL reports. In addition, a wireless system could save millions of dollars by eliminating the cost of running cable into a radioactive process room, which can run as high as $2,000 per foot. Another key advantage, SNRL notes, is the freedom of movement achieved when equipment is not restricted by wires and cables. The sensors can be placed directly in the area of concern, instead of pumping air to the sensors' location. While the radiation sensor is specific to nuclear facilities, SNRL explains, the short-range wireless sensor network is adaptable to other applications requiring high reliability with ultra-secure protection of the wireless data network. The wireless network design is based on Suite B cryptographic algorithms, and meets the requirements outlined in a 60-page NSA specification. Suite B Cryptography can be used to protect classified U.S. government information up to the secret level. Since the vast majority of classified information is categorized as secret or below, approved Suite B products could significantly improve the speed and flexibility of deploying secure, commercial-off-the-shelf-based communications systems. These could be used in place of current "Type 1" encryption products controlled by the NSA and only sold to the federal government. According to SRNL, these encryption products have strict security controls that make them cumbersome to operate, and they take multiple years to design and develop, making them significantly more expensive than commercial alternatives that solve similar problems. The Savannah River National Laboratory, an applied research and development facility focused on environmental stewardship, national security and clean energy, is managed and operated by Savannah River Nuclear Solutions, a partnership comprising Fluor, Newport News Nuclear and Honeywell.

Association Promoting the MicroSD Format Announces Support for Near Field Communication RFID
The SD Association, an organization of more than 1,000 technology companies charged with setting interoperable Secure Digital (SD) standards to encourage the development of products that use SD technology, such as mobile phones, digital cameras, GPS navigation devices and other devices, has announced a new specification designed to enable microSD memory cards to support secure smart-card value-added services. The smartSD spec now includes the single wire protocol (SWP) to support Near Field Communication (NFC) features, allowing for a secure element on the microSD memory card. Specifically, the standard now specifies the mechanical contact pads and electrical interface for the SWP between microSD and an NFC RF device on the host. Supporting the smartSD spec and creating smartSD memory cards, the SD Association reports, enables mobile devices to be transformed into electronic wallets that can securely carry cashless currency and paperless identification, or receive customized subscription services, such as mobile television. Consumers will be able to manage their own identity and authentication features, affording them greater control over their personal data, the association explains, and also gives consumers greater security than cloud-based solutions, since the smart-chip-enabled SD memory cards would only be active in a consumer-authorized device. The new specification also enables communication with an embedded secure element supporting GlobalPlatform standards for managing applications on secure chips, and for using Java Card, a technology that allows Java-based applets to be run securely on smart cards and similar small-memory-footprint devices. "Completing the enhancement to smartSD marks the achievement of a strategy announced in 2011 to find new markets that would benefit from SD standards," said Brian Kumagai, SD Association's president, in a prepared statement. "Adding smart-chip technology to microSD memory cards gives SD-equipped smart phones and tablets new consumer conveniences whether they're connected to the Internet or not. We know consumers want more flexibility to expand their storage needs, and a simple way to participate in a variety of value-added services offered by a variety of companies and institutions today."

Gartner Lowers Forecast for NFC-based Mobile Payment Transactions
A new study released by Gartner, titled "Forecast: Mobile Payment, Worldwide, 2013 Update," estimates that worldwide mobile-payment transaction values will reach $235.4 billion this year, a 44 percent increase from 2012 values of $163.1 billion. The number of mobile-payment users worldwide will reach 245.2 million in 2013, Gartner reports, up from 200.8 million in 2012. Despite that growth—and an impressive forecast valuing the market at $721 billion, with more than 450 million users by 2017—Gartner says it actually lowered the forecast in the near term, due to lower-than-expected growth last year, particularly in North America and Africa. Gartner reports that it reduced the transaction value for Near Field Communications (NFC) by more than 40 percent throughout the forecast period, due to the disappointing adoption of NFC technology in all markets during 2012, and the fact that some high-profile services, such as Google Wallet and Isis, are struggling to gain traction. Gartner forecasts that NFC technology will account for only about 2 percent of total transaction value in 2013, and 5 percent of the total transaction value in 2017, though growth is expected to increase somewhat from 2016, once the penetration of NFC mobile phones and contactless readers increases. The market research firm estimates that the largest contributors to the total mobile transaction value this year will come from the use of mobile devices to carry out money transfers (71 percent) and merchandise purchases (21 percent). Merchandise purchases are expected to account for approximately 23 percent of the total value forecast for 2017. Bill payment value is expected to grow by 44 percent in 2013, Gartner indicates, and to experience consistent growth throughout the forecast period, accounting for about 5 percent of the total value forecast by 2017. From a regional perspective, Asia-Pacific's transaction value is expected to grow by 38 percent in 2013, reaching $74 billion. Deployments in developed markets, such as South Korea and Singapore, and in developing markets, such as India, are expected to drive healthy growth in this region, Gartner reports. As a result, Asia-Pacific is anticipated to overtake Africa in 2016, to become the largest region by transaction value, reaching $165 billion. North America's transaction value is forecast to grow 53 percent in 2013, reaching $37 billion, up from $24 billion last year. The region has been impacted by the low adoption of NFC payment services, the firm notes, as well as by many merchants launching mobile apps in a copycat fashion without a clear winning strategy. Western Europe's transaction value is expected to reach $29 billion this year, up from $19 billion in 2012. Additional information regarding mobile payments can be found in Gartner's report, available here.