The Bankwatch

Tracking the consumer evolution of financial services

BBVA implement HCE in their wallet deployment

BBVA who recently purchased digital only Simple Bank announce their first and the worlds first (apparently – requires validation) implementation of HCE which in practical terms is the recently uncovered method for bypassing the telco’s previous hold on payments using mobile phones. For more read my earlier review of Dave Birch’s discussion on HCE here.

BBVA introduces HCE-based mobile NFC payments | Finextra

Spain’s BBVA has become the first major global bank to commercially launch a host card emulation-based mobile contactless payments service.

Relevance to Bankwatch:

In summary from my earlier post and subsequent study, HCE (Host Card Emulation) is a method by which phone app developers can bypass the phone hardware usually embedded by telco’s in their SIM card and known as “secure element”. The secure element was designed to have telco’s own, and take a fee, for every payment transaction using phones using their network. As you can imagine the development of HCE is huge, even game changing, for payments and future revenue flow associated with payments.

Question: do the Canadian Banks employ secure element in their wallets? I think the answer must be yes, but reaching out to hear.

Written by Colin Henderson

June 30, 2014 at 16:20

Posted in Uncategorized

%d bloggers like this: