The Royal Bank of Canada (RBC) is preparing a mobile NFC payments service which will see sensitive user data stored in the cloud rather than the handset.
The bank says it plans to bring its patent-pending RBC Secure Cloud mobile payments service to market by the end of the year, enabling debit and credit cards to be linked to a number of smartphone platforms.
RBC claims that the model means that it assumes the security burden, since sensitive client data remains with it, as opposed to on the phone, as is the case with other models. The data is transmitted encrypted and decoded locally on the client's mobile device at the point-of-sale through partnerships with mobile service providers.
The bank also says that the system will offer simple and fast provisioning of account information, seamless card lifecycle management, and an 'open wallet' architecture, meaning that in future it will have the ability to support non-RBC payment methods.
Linda Mantia, EVP, cards and payments solutions, RBC, says: "We have designed a mobile payment solution that offers a better client experience and increased security than has been previously available, while meeting industry standards."
Earlier this year, Dutch vendor Bell ID launched a cloud-based secure element for the provisioning of mobile NFC services, eliminating the need for hardware within the handset.