According to “Trusted Service Manager – The Secure Bridge Between NFC Stakeholders,” TSMs are a key partner of service providers and mobile network operators for providing security in the NFC ecosystem. A TSM is responsible for facilitating cooperation between banking and mobile systems in order to ensure the security of a transactions performed using a mobile phone.

Life cycle management of applications and management of the secure element are anticipated to remain the main sources of revenue. However, F&S predicts that TSMs will soon evolve into a “business enabler role,” responsible for the management of commercial relationships between participants of the NFC market.

“Payment and transportation applications will push the market during the next five years,” added Fernandez. “Provisioning of platforms for Digital Right Management and mobile marketing are markets that have not been explored by TSMs, but they could become, if well addressed, a source of tremendous growth.”

Despite the rosy projections, the report warns that multiple secure element form factors, interoperability among consortia and low end-user awareness are still issues that are affecting the uptake of NFC and, thereby, the trusted services market.

“It is important that none of the NFC participants pushes for a single type solution, but rather that all participants firstly focus on standardizing the market,” said Fernandez. “TSMs are key stakeholders of the NFC ecosystem, and their collaboration is needed for the successful deployment of NFC services. The MIFARE4Mobile industry group is a great example of cooperation among competitors. Seven major companies from the telecom, smart card, semiconductor and payment industries have joined forces to create a space where they can collaborate. The group’s purpose is to bring forth relevant specifications and standards for the management of MIFARE applications on NFC secure elements.”