Westpac NZ Product Chief: HCE Offers Bank More Simplicity, Control

Aug 1 2014

NFC Times Exclusive: Westpac New Zealand’s product chief told NFC Times he believes host-card emulation will reduce costs and increase flexibility, while ensuring the bank can use its own branded wallet.

The bank, which recently launched a small HCE pilot using a MasterCard PayPass application, plans to launch commercially during the first quarter of next year. While Shane Howell, chief product officer for Westpac’s New Zealand operation, said the bank hasn’t ruled out also putting its payment application on secure elements “over the long term,” it will first try out HCE.  

Westpac, one of New Zealand’s largest banks and part of Australia-based Westpac Group, is a co-owner of the country’s largest processor, Paymark, which in 2012 announced it would form a joint venture, TSM NZ, with the three largest mobile operators, Vodafone New Zealand, Telecom New Zealand and 2degrees. The CEO of the joint venture, Rob Ellis, told NFC Times that compared with HCE, which is a “very new” technology, the JV is building a SIM-based wallet platform that “customers can trust and rely on implicitly.”  

Words: 

1,400 

Sources Quoted:

  • Shane Howell, chief product officer, Westpac New Zealand
  • Rob Ellis, CEO, TSM NZ
  • Neil Livingston, mobile product director, Carta Worldwide 

Among Topics Covered:

  • Westpac New Zealand’s reasons for adopting host-card emulation, despite its earlier involvement and continued co-ownership in the SIM-based TSM NZ joint venture.
  • Details of Westpac’s HCE trial and tokenization system it is using
  • TSM NZ’s launch schedule and plans for its “unique brand,” for its wallet app
  • TSM NZ’s view of SIM-based security and performance versus “very new” HCE technology
  • Identity of at least one other Kiwi bank planning HCE launch
  • View of demand for HCE by Westpac’s technology supplier, Carta Worldwide

Among companies and organizations mentioned:

Westpac New Zealand
TSM NZ
Paymark
Vodafone New Zealand
Telecom New Zealand
2degrees
Carta Worldwide
Gemalto
Capital One 

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