recode.net/2014/02/19/...wallet-thanks-to-mastercard-and-visa/
Historically, mobile carriers controlled who gained access to the secure element. That means they’ve ultimately been able to decide which apps a shopper can use for NFC payments in brick-and-mortar stores. NFC, which stands for near field communication, is a wireless technology that allows a piece of hardware to exchange data with another piece of hardware nearby simply by bringing them close or tapping them together. Since the payment data transferred in an NFC transaction previously had to come from the phone’s hardware secure element, a mobile carrier could decline any given app from using that data.
For example, Google Wallet’s tap-to-pay feature using NFC isn’t available on the vast majority of phones running on Verizon, AT&T and T-Mobile networks. That’s widely believed to be the result, at least in part, of the fact that those three carriers are the backers of a competitive app called the ISIS Wallet.
But with HCE, phones can bypass those carrier restrictions; an app can access and present the payment card information for an NFC payment from the cloud, which mobile carriers do not control. But the only way a purchase using HCE and NFC could take place is if the credit companies allowed the payment card details to be stored in the cloud. In short, HCE needed their stamp of approval.
One big U.S. bank already is. Capital One confirmed on Wednesday afternoon that it is currently working on adding tap-to-pay functionality to its Android app.
“Capital One is exploring HCE payment capabilities as part of our ongoing pursuit to provide secure, convenient payment solutions for our customers
Historically, mobile carriers controlled who gained access to the secure element. That means they’ve ultimately been able to decide which apps a shopper can use for NFC payments in brick-and-mortar stores. NFC, which stands for near field communication, is a wireless technology that allows a piece of hardware to exchange data with another piece of hardware nearby simply by bringing them close or tapping them together. Since the payment data transferred in an NFC transaction previously had to come from the phone’s hardware secure element, a mobile carrier could decline any given app from using that data.
For example, Google Wallet’s tap-to-pay feature using NFC isn’t available on the vast majority of phones running on Verizon, AT&T and T-Mobile networks. That’s widely believed to be the result, at least in part, of the fact that those three carriers are the backers of a competitive app called the ISIS Wallet.
But with HCE, phones can bypass those carrier restrictions; an app can access and present the payment card information for an NFC payment from the cloud, which mobile carriers do not control. But the only way a purchase using HCE and NFC could take place is if the credit companies allowed the payment card details to be stored in the cloud. In short, HCE needed their stamp of approval.
One big U.S. bank already is. Capital One confirmed on Wednesday afternoon that it is currently working on adding tap-to-pay functionality to its Android app.
“Capital One is exploring HCE payment capabilities as part of our ongoing pursuit to provide secure, convenient payment solutions for our customers