PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Host Card Emulation is a Secure Option for Mobile Payments

By Tim Sloane
August 28, 2014
in Analysts Coverage
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

Robert Wessels wrote an opinion piece in Payments Source that was titled, “Host Card Emulation is a Secure Option for Mobile Payments.” In this he argues that security is a matter of perspective and that on balance tokens make HCE sufficiently secure for the purpose.

“While some may consider the use of HCE less secure as there is no physical secure element (SE) involved, it is really a matter of perspective. Instead of storing the card data in the SE, tokens are downloaded to the device and used to complete the transaction at the point of sale (POS). Any breach of security would expose only one or a limited amount of tokens (typically associated with a low transaction value), not the account itself. The limited gain available to hackers in return for the considerable investment of effort and time is more likely to make them put their focus on more attractive targets,” wrote Wessels.
“Many issuers therefore see this as an acceptable balance of risk and reward. With the value of the token being so low, it is questionable whether the highest level of security is required. As a comparison, your house is also less secure than a bank vault; the same level of protection is not required due to the value of the contents.”

The article also argues that HCE simplifies the business model and that despite some initial concerns the branded networks have embraced the HCE implementation.

“Overall, the benefits that HCE can bring, such as the simplification of the business model, increased processing power and speed, greater storage capacity and further control over projects, are many and wide ranging. Some observers may consider that the strongest security concerns have come from those with the biggest vested interest in maintaining the SIM as an essential component. Many of these concerned parties followed the Google announcement last October by asserting that the card schemes would never certify such solutions. This fear proved groundless with the subsequent statements from Visa and MasterCard in February, detailing their plans to support cloud payments,” according to Wessels.

Tokens can clearly be an acceptable method for managing risk in a mobile environment where access to the Secure Element has been restricted, but only if properly implemented across all participants in the value chain. For more thoughts on this, read the Payments Journal blog, “Is the Security of Host Card Emulation Debatable?”


Overview by Tim Sloane, Vice-President, Innovation

To read the full story, go to Payments Source.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    fraud as a service

    Keeping Up with the Most Dangerous Fraud Trends of 2026

    December 8, 2025
    open banking

    Open Banking Has Begun to Intrude on Banks’ Customer Relationships

    December 5, 2025
    conversational payments

    Conversational Payments: The Next Big Shift in Financial Services  

    December 4, 2025
    embedded finance

    Inside the Embedded Finance Shift Transforming SMB Software

    December 3, 2025
    metal cards

    Metal Card Magnitude: How a Premium Touch Can Enthrall High-Value Customers

    December 2, 2025
    digital gift cards

    How Nonprofits Can Leverage Digital Gift Cards to Help Those in Need

    December 1, 2025
    stored-value prepaid

    How Stored-Value Accounts Are the Next Iteration of Prepaid Payments

    November 26, 2025
    google crypto wallet, crypto regulation

    Crypto Heads Into 2026 Awaiting Its ‘Rocketship Point’

    November 25, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result