Mobile payments have become a cornerstone of digital commerce, with financial institutions continually seeking more secure and convenient ways to enable contactless transactions. One technology that helped accelerate mobile wallet adoption is Host Card Emulation (HCE), which allows payment credentials to be securely managed in the cloud rather than relying on specialized hardware embedded in mobile devices.
American Express’s partnership with Privredna Banka Zagreb (PBZ) and Intesa Sanpaolo Card to pilot HCE-based NFC payments in Croatia reflected the industry’s growing commitment to open, scalable mobile payment solutions. By making the service available regardless of a customer’s mobile carrier, the initiative aimed to reduce barriers to adoption while expanding the reach of contactless payments.
American Express has announced a partnership with Privredna Banka Zagreb or PBZ and Intesa Sanpaolo Card Ltd. to pilot a HCE (Host Card Emulation) for mobile NFC (Near-Field Communication) payments at POS (Point-of-Sale) terminals across Croatia.
The new service from PBZ will be open to all of its cardholders, regardless of their mobile network operator and allow consumers to make payments at the physical point-of-sale using their mobile phone. Once a cardholder has registered for the service, they will be prompted to download the application to their smartphone. Then, the cardholder can upload their payment card details after passing two verification stages. Once completed, the cardholder will be able to make payments using their phones.
“PBZ continues to lead the marketplace in introducing the latest payment innovations,” said Dinko Lucic, member of PBZ Management Board. “In Croatia, PBZ Group was the first to launch internet banking, in addition to online mobile banking 10 years ago. By testing this new NFC-based secure payment option, we will continue to play an important role in making the latest payment technologies available to our customers.”
While consumer adoption of the service will ultimately determine the pilot’s success, it is clear that the industry is moving towards HCE based technologies in both mature and maturing markets given the significant cost savings over traditional models using NFC as the primary payment technology. By opening the service to all cardholders, irrespective of their mobile networks, it should help boost consumer adoption and in turn the success of the service.
HCE technology represented an important milestone in the evolution of mobile payments by making NFC-based transactions more flexible and easier to deploy across devices and networks. As financial institutions continue to prioritize seamless digital payment experiences, cloud-based mobile payment technologies remain an important foundation for innovation. Pilot programs such as this helped pave the way for the widespread adoption of mobile wallets and contactless payments seen today.
Overview by Tristan Hugo-Webb, Associate Director, International Advisory Services
To read the full story, go to Finextra.
