Spain's Bankinter is prepping a contactless mobile payments service that does not require a secure element within the handset.
From this summer, Bankinter customers will be able to download an app to their NFC-enabled phone, register the product through the bank's Web site and start making contactless payments within minutes.
Instead of using a secure element from a handset manufacturer or network operator, the customer will temporarily download virtual one-time use replicas of their physical credit or debit card every time they make a payment.
The service, developed with Visa Europe, Net1 UEPS and Seglan, does not require any changes to the existing infrastructure, working with any contactless POS terminals, and is fully EMV compliant.
Because registered cards can be updated via a remote management system controlled by Bankinter, the approach means that the bank can "autonomously define its own business model and brand image" rather than having to strike deals with telcos and handset manufacturers to gain access to the secure element.
Jacobo Díaz, director, innovation, products, markets and quality, Bankinter, says: "The Mobile Virtual Card solution eliminates the main difficulties that today are slowing the commercial launch of NFC payments and make it in compatibility with the standards of the financial industry, helping to avoid market fragmentation that in no way benefits the final consumer."