Fall 08 - T06 - G5

Group Information
Tutorial: 6

Group Number: 5

Group Menbers: Joanna Song, Harris Stephenson, Jacob Throgood, Sisi Zhou

History

 * In 1988, Sony started to develop wireless IC card. 


 * In 1994, Sony named its contactless IC card FeliCa. The name stands for Felicity Card, as its meaning suggests, the system was designed to make daily living easier and more convenient. Later in that year, Hong Kong decided to use the FeliCa technology. This is the first time the idea being used outside of Japan. 


 * The Octopus Card was published in 1997 in Hong Kong; this is the first time FeliCa is being used outside of Japan. 


 * In 1999, Sony worked with several other companies to start develops e-money. They name it “Edy!” in the beginning, and later changed to “Edy”.


 * In 2000, East Japan Railways decided to use FeliCa technology on their tickets. And later in 2001, East Japan Railway published Suica as their tickets. In the same year, bitWallet Inc.’s e-money system Edy was officially being used. 


 * In 2004, Sony worked with NTT DoCoMo to produce Mobile FeliCa IC Chip, so the FeliCa technology can be used in mobile phones.

What is a smart card?

 * A smart card resembles a credit card quite closely- it’s about the same size and shape, but the difference is what’s on the inside of a smart card. The magnetic stripe of a credit card can be easily copied or read, and thus private information cannot be stored there. Instead, to prevent fraud with a credit card, networks must be set up online to ensure verification and processing- but that’s not the case with a smart card. A smart card has a microprocessor embedded in the card which resembles the magnetic stripe of a credit card. However, the microprocessor of a smart card “communicates” personally with the card reader of the host computer which allows for secure storing of private information.


 * A smart card’s microprocessor can have information saved on it and stored, and if the host computer can both read and write information from the floppy disk, than incoming input is processed and is sent out as output. Also known as a CPU (central processing unit), the microprocessor can move data from one memory location to another.

How the FeliCa smart card is used:

 * FeliCa is a contactless smart card, in which the microprocessor communicates with the card reader through RFID (Radio Frequency Indentification) induction technology. The smart card only has to be within a close proximity to the antenna of the card reader for processing to occur. Thus, the Felica card can be part of a phone, which is how the “wallet phone” system works; as well, Sony’s new VAIO laptops incorporate a FeliCa port so the FeliCa card can be used for internet shopping.

What powers the FeliCa smart card?
Finally, the FeliCa smart card does not run on battery, but uses the built in inductor to capture some of the radio frequency waves during processing for power. Once the transfer of data is complete, the card reader will stop the supply of power.

Applications

 * The FeliCa technology first found widespread popularity in Hong Kong with the introduction of the Octopus card. Originally used as a payment method for fares on Hong Kong’s mass-transit system, it has expanded to include nearly all transit in Hong Kong. It has also been adopted for its e-money applications as as a form of payment at convenience stores, fast-food restaurants, parking meters, vending machines and many other locations.


 * FeliCa is expanding internationally, mostly in Asia, however plans are in place to expand to the rest of the world. FeliCa has found a particularly available market in Japan, where FeliCa enabled devices using the Suica and Edy networks allow payments for everything from transit tickets to supermarket bills and vending machines. Many different companies, including VISA, 7-Eleven, and Japan Railway, have released cards including a FeliCa microchip.


 * Due to the versatility of the technology, and the fact that the FeliCa reader only requires the chip to be in close proximity, FeliCa can be built into many non-standard consumer goods. The FeliCa chip has been integrated into mobile phones, removing the need for a separate card, and allowing for additional services. In Hawaii, the chip has been placed in a keychain, and is used as an entrance pass at the popular Winter Baseball Tournament. Sony has also begun releasing all of their VAIO laptops with a FeliCa reader. This allows internet transactions to be paid via FeliCa, as well as enables a FeliCa enabled card or device to work as a username and password for the computer.



Services

 * Due to the unique nature of the FeliCa technology, providers can offer many new services. For example, East Japan Railway offers ticket purchasing and seat registration via a FeliCa enabled mobile phone, where the phone then serves as your boarding pass. There are many other companies that offer similar ticket purchasing and seat reservation services.


 * On the trains in Tokyo, the FeliCa system can automatically alert a parent or guardian when an elementary school age passenger passes through the ticket gate. In Finland, students at 15 universities use FeliCa enabled ID cards to access rooms on campus, and as e-money at the cafeteria. FeliCa has partnered with Blackboard Inc. to start expanding FeliCa services in North America.

Advantages
There are many advantages of the Felica and the RFID technology,

They can be used as identification for sudents, police officers, controling access to certain sensetive materials, as well as senior citizens. Acts as an easy pay method for everything from public transit to shopping at a local supermarket. The Felica technology allows this by setting up swipe and pay terminals that only require a swipe of the Felica to allow the individual to pay. This increases the efficency of public transportation, and lets supermarkets deal with long lines quicker. The ability to obtain Felica cards makes them very practical to use in everyday life, they are stocked at almost every technology stores in asia. The expansion of the Felica technology into cellphones specifically the Osaifu Keitai or “Wallet Money” allows individuals to download plane, train, concert, even movie tickets without having to keep track different cards for each one. The addition of Felica to passport technology allows for greater security of the hard copy, by ensuring that it is harder to manufacture a fake.

Disadvantages
The disadvantages of the Felica and the RFID technology centre around the issues of privacy and security,

The signals from the Felica cards in the United States are not compatable with European signals, as well as the Felica system in Asia. This results in a major roadblock in the process of Felica devices becoming internationally usable. The signals that the Felica technology and similar RFID components output raise the question of the ability to trace these signals creating an invasion of privacy as it allows individuals and organizations to track where someone may be going. The loss or theft of a person's Felica card could result in a large amount of personal data falling victim to individuals that may utilize it for identity theft as well as track where someone may be going. The online purchases of any Felica card are maxed out at one hundred dollars, preventing the technology from replacing credit cards as well as debit cards for their security as well as their utility.

Conclusion
Although some may argue there are privacy concerns about the FeliCa technology, it is still beneficial to the society. The technology is so convenient that one can pay easily and efficiently for everday expenses like public transit, supermarkets, convenient stores, vending machines, or even flight tickets. The build-in FeliCa mobile IC chip also allows people to pay with their cell phones. It is very easy to use, even the older people will have no trouble using it. Furthermore, the card is environmentally friendly, so it helps to protect the earth. As for the privacy concerns, since the technology is developing in such a rapid speed, Sony will soon find a way to resolve FeliCa's security issues.