Blog article
See all stories »

Will Host Card Emulation save NFC?

Coexistence: Host Card Emulation supports the coexistence between the Secure Element issuance model and the HCE CloudSE and in-software approaches. This leaves an open-door to a shift in approaches or (commercial) attitudes towards eSE and USIM SE issuance.

The offline/no-network problem – CloudSE solutions now offer the ability to support a limited number of “offline” transactions using pre-generated hash values to add a limited element of security to transactions.

What is still required? The ability to converge multiple channels into a single “Wallet” application – a merger of loyalty, payment and customer enquiry services (transaction history, open to buy values etc).

What could kill NFC? New alternate solutions – something we haven’t seen yet? There is a lot of faith put into the Bluetooth Low Energy (BLE) or iBeacon technology – whilst this is a good platform for tender steering, e-couponing and loyalty based interactions – maybe even e-receipt fulfillment – it does not lend itself towards payments. For payment orchestration – NFC seems better placed to fulfil this need – as it is inter-operable with pre-existing Contactless functionality already rolled out to existing EFT-POS terminals.

If Apple and Microsoft throw their collective weight behind HCE along with Google (Android) and BlackBerry - we may see it as an evolutionary stepping stone to a truly mobile ecosystem.

 

3938

Comments: (1)

A Finextra member
A Finextra member 15 August, 2014, 09:18Be the first to give this comment the thumbs up 0 likes

To be honest - I hope it really does save NFC!  Let's hope Apple open the kimono on September 6th...

Matt Scott

Matt Scott

Vice President

Fiserv Inc

Member since

10 Jul 2009

Location

London

Blog posts

13

Comments

153

More from Matt

This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


See all