Host card emulation emerges as a security solution

On the other hand, the HCE solutions have raised several concerns as in the absence of a single network, a single protocol and a common set of rules, hackers can breach security layers using sophisticated tools. Until the recent spate of attacks, banks and financial institutions had been reluctant to invest heavily in protecting their digital transactions. However, new awareness of the huge liabilities and losses that can be incurred through these data leaks is encouraging their support for the use of HCE security technology.

HCE has drastically changed the way mobile payment is processed and it is demanded because of certain aspects. For instance, HCE’s security level is lower than that of NFC. Nevertheless, HCE is the answer to part of the bottleneck since it can aid in consumer management and reduce deployment time. Significantly, HCE does not use a hardware secured element to store secret keys.

Credentials are moved to a cloud-based platform and are accessible through a specific payment application. The credentials are available for one-time use and based on the risk, can be used only for a particular amount. With HCE, time is critical during a transaction and the payment mechanism usually does not request considerable encrypted information.

The payment industry needs to evolve a global standard that will provide answers to client and customer demands for advanced security solutions. A solution that is secure-by-design, and not merely a compilation of best secured practices, is essential to guarantee the safety of a payment process.