Denmark's Nets is to use HCE technology from Japanese card issuer JCB as the foundation for a nationwide mobile payment system.
Under the agreement, Nets will utilise J/Speedy, JCB's contactless technology, for Dankort debit card payments with smartphones, with a launch date scheduled for autumn 2016.
Nets believes that in 2020 up to half of all payments at the point-of-sale in Denmark may be initialised from a smartphone and that there will be more than three million Dankort on mobile phones.
Jeppe Juul-Andersen, Nest SVP says: "With this new partnership, Dankort will be powered by strong technology from JCB. The first step in the partnership will be to base Dankort on the mobile phone on JCB's technology but there is also a solid base for further developments. A second phase will include international interoperability using JCB's global network."
Dankort on the mobile will operate with a DKK200 upper limit for touch and go transactions at contactless terminals, with a passcode required for higher value purchases. In Denmark, 60% of all Dankort transactions are currently carried out using contactless technology.
The finished product will include support for tokenisation and enable payments via QR codes and bluetooth for phones without NFC functionality.