HCE Solutions: EMV Cloud Based Payment Platform

Executive Summary

There is dedicated security hardware inside Android phones called a Secure Element. Limited amount of EMV (Europay Mastercard Visa) card credentials can be loaded on secure element and Android devices having NFC chip can be used for contactless payments by employing Host Card Emulation technology. Once the cardholder requests payment in the store, payment is performed simply by entering PIN to the Mobile payment application and by tapping a mobile device to the contactless POS reader terminal.

Problem and Opportunity

Mobile Contactless Payment Providing new attractive and independent payment services to clients. Banks and payment gateways can utilize mobile payment application for a way for advertisement and communication. They can also perform behavior analysis to push marketing promotions in the real time

Solution

Metamorfoz HCE includes all back-end and front-end components from card issuer’s side that need to participate for providing a complete HCE cloud-based payments functionality. All components interoperate between themselves and with Issuer systems (Card management and Transaction processing systems) in order to provide three key functionalities to end users:

Cardholder can make payments with his Mobile Device instead of physical payment cards and it can be done even when the mobile device is offline
Card Issuer can control, supervise, and always manage these transactions
Both processes above are conducted in highly secure manner regardless of challenges introduced by fast-growing and fast-changing world of mobile and digital industry

Benefits

Alternative way of exploiting payment cards
Additional advertisement and communication channel through mobile payment application
Simplicity of using of mobile devices for payments
No need for carrying plastic cards
Offline payments are possible
Shifts liability towards least EMV compliant party in payment chain

Why Metamorfoz

Metamorfoz HCE solutions is already being used by big Turkish bank in its mobile banking app with trust since long and fully tested and verified by independent organizations against performance, information security and compliancy issues.