Asia-Pacific Banks Gear Up for HCE; Likely Site of Some of the First Issuer-Led Launches

NFC Times Exclusive: Despite the interest in host-card emulation in North America and Europe grabbing the spotlight, there is a good chance that banks and other issuers in Asia-Pacific could generally commercialize the technology first, sources told NFC Times.

Banks and payments companies in Australia and New Zealand in particular have been working on the technology for months and are seeking first-mover advantage within their markets, said sources. Visa and MasterCard Worldwide are assisting the banks, with Visa said to be pushing the technology hard in some markets. 

To date, the only HCE service commercially available is Google Wallet in the U.S., operating under a waiver from MasterCard, though the service is not being heavily promoted and is not supported directly by banks. 

Meanwhile, Asia-Pacific could be the site of one of the first decisions by banking regulators on HCE, with Taiwan’s Financial Supervisory Commission, or FSC, evaluating the technology, according to local reports Wednesday. It remains to be seen when the FSC, known as a strict regulator of new payment technologies, will render a decision. 

If the commission gives its blessing to HCE, it could be a boost for the technology, which has continued to be called into question on security grounds for open-loop payments by many in the NFC ecosystem–though a number of these critics are telcos, trusted service managers and smart card vendors, which have a vested interest in the rollout of secure elements 

Words

1,600 

Among Topics Covered:

  • Issuers in Australia and New Zealand gearing up for HCE
  • Australian payments service provider Cuscal’s readiness to enable its credit union customers to launch HCE
  • Evaluation by Taiwan’s banking regulator, the Financial Supervisory Commission, of HCE technology
  • Major Taiwanese banks developing HCE or expressing interest
  • Likelihood of banks in Taiwan to also use secure elements
  • HCE to compete with TSM platforms being developed by joint ventures in Taiwan
  • New global HCE specification releases from Visa and MasterCard
  • HCE vendors working in Australia and New Zealand
  • Prospects for HCE in China 

Among companies and organizations mentioned:

Visa
MasterCard
Google
Commonwealth Bank
Westpac
National Australia Bank
ASB Bank
Cuscal
CUA
Financial Supervisory Commission
Chunghwa Telecom
Alliance Digital Technology Corp.
Taiwan Mobile Payment Co.
Cathay United Bank,
Taishin International Bank
E.Sun Commercial Bank
Chinatrust Commercial Bank
EasyCard Corp.
SimplyTapp
Bell ID 

This is premium content from NFC Times. 

Read Full Article 

© NFC Times and Forthwrite Media. NFC Times content is for individual use and cannot be copied or distributed without the express permission of the publisher.

HEADLINE NEWS

Study: Merchants Could Boost Sales by Easing Fears Over Digital Security

NFC TIMES Exclusive Insight – A survey conducted by American Express suggests that U.S. merchants could increase their online sales by taking steps to enhance the security of customers' information.

Visa Expands Token Service Provider ‘Partner’ Program, Though Most Vendors Not Yet Integrated with VTS

NFC TIMES Exclusive Insight ­– Visa this week announced a new list of 13 “partner” companies to help it distribute and manage Visa-generated tokens, which the network giant is promoting for use in what it hopes will be large-scale rollouts of Internet of Things devices that can do payments.

Analysis: Apple Apparently Sees Need for Additional Pairing Technology with Support for NFC Tag Reading

NFC TIMES Exclusive Insight ­– Nearly three years after embracing NFC technology for mobile payments but declining to support NFC’s tag-reading mode, Apple, in a surprise move, is adding tag-reading support to its NFC-enabled devices, including the iPhone 7 series and forthcoming iPhone 8, as well as its Apple Watch.

Exclusive: Major U.S. Processors Say In-Store Transactions for Pays Wallets Remain Disappointing

NFC TIMES Exclusive – Apple Pay and the other major Pays wallets still only account for around 1% of card transactions in the U.S., three major processors told NFC Times. At least two of the processors say they haven’t seen growth in Apple Pay over at least the past year.

Alipay North America Chief Insists Company has No Plans for U.S.-Based Wallet

NFC TIMES Exclusive –  Alipay has no plans today to introduce a mobile wallet in the U.S., and is instead expanding its merchant acceptance footprint in the U.S. only to serve Chinese visitors, Souheil Badran, president of Alipay North America, told NFC Times.

NFC Secure Element Shipments Likely Dropped for First Time in 2016, and Vendor Group Cuts Forecast for 2017

NFC TIMES Exclusive Insight – Shipments of NFC secure elements almost certainly fell in 2016, based on recent figures released by vendor association Eurosmart, though the group is again declining to release specific shipment figures for NFC cards and embedded chips, instead combining the NFC unit shipments with those for machine-to-machine modules.

Samsung Pay Launches Commercially in Taiwan; No. 4 Credit Card Issuer Taishin Reveals Apple Pay Card Adds

NFC TIMES Exclusive Insight – Samsung made it official, launching Samsung Pay commercially today in Taiwan with seven banks, as expected, following Apple Pay to the market by about two months and beating Android Pay, which is expected to launch on the island nation as early as next week. 

Why is Mobile Wallet Adoption So Disappointing? Some Industry Players Weigh In

NFC TIMES Exclusive –  NFC wallets are failing to catch on in the U.S., especially for in-store transactions, for a variety of reasons, including poor awareness among consumers and cashiers, lack of full buy-in from merchants, problems with certifying terminals for contactless and an insufficient value proposition, said industry players, including a representative from Google.

Samsung Pay Launches in UK Without Major Banks or MST Technology

NFC TIMES Exclusive Insight – Samsung today finally launched its Samsung Pay mobile payments service in the UK, well behind rival payments services Apple Pay and Android Pay.

Wal-Mart Still Balks at Accepting NFC; Nordstrom Wants Right to Refuse Some NFC Wallets

NFC TIMES Exclusive – LAS VEGAS, Nev.: It’s been more than two and a half years since Apple Pay launched in the U.S., and retail giant Wal-Mart Stores still is no closer to accepting NFC at its 4,000-plus stores in the U.S. then when Apple began rolling out its NFC-enabled mobile payments service in October of 2014.

Apple Testing Loyalty Feature; Google Expected to Expand Payments for Home Device

NFC TIMES Exclusive – As they struggle with low user adoption of their respective wallets in the U.S., Apple and Google are seeking to add more features, hoping to increase transactions, NFC Times has learned.

Taiwan Chief Banking Regulator Reveals Apple Pay Card Adds; Samsung Launches Early Access in Country

NFC TIMES Exclusive Insight – The chairman of Taiwan’s banking regulator, the Financial Supervisory Commission, Wednesday revealed just how fast a start Apple Pay got on the island nation, following its launch of the mobile payments service there in late March.