VISA & Mastercard; Mobile Payments Will Move On...
The message for mobile operators is clear and direct, your time is up. The world of mobile payments will move on without you. Visa and MasterCard have announced support for Host Card Emulation, a cloud-based mechanism for hosting NFC applications outside the Secure Element that effectively removes the need for bank reliance on telcos in implementing mobile payments.
NFC & HCE Development
Near Field Communication, also known as NFC, is a set of standards for smartphones, credit cards, and similar devices, to communicate with similar devices by bringing them close to each other. Starting in 2004, several phone manufacturers joined forces to define the standard and help. With backing from the likes of VISA, Mastercard, Samsung, Nokia & Blackberry, one could expect NFC to be rolled out widely across the country. In fact, signs point to an increase in the potential, with credit card terminals supporting Visa and Mastercard appearing at increasing frequency in stores around the country. But to date, the standard has been to use SIM based secure elements for authentication and security. However, mobile operators across the globe have failed to take advantage of the HUGE window of time the industry gave them. Hence the invention of HCE or Host Card Emulation.