Future of Embedded Chips Uncertain, as Promise So Far Goes Unfulfilled for Samsung, Visa and MasterCard

NFC Times Exclusive: Assuming Apple doesn’t put embedded secure elements in its next iPhone as some are predicting, the future for the embedded chip technology for NFC phones is uncertain–beset by stalled projects, growing interest in host-card emulation and questionable continued support from Samsung.

Morgan Stanley analysts last week predicted Apple would adopt NFC and also believe the tech giant would put embedded secure elements in its iPhone 6 and next iPad. A few other sources told NFC Times earlier that they believe the same, predicting Apple will finally support NFC payments from established payment brands Visa, MasterCard, China UnionPay and others. 

But this information and the Morgan Stanley report remains speculation, with no confirmation or convincing evidence made public yet.  

Meanwhile, as NFC Times has reported, Samsung is not putting embedded secure elements in most of the units it ships of its new flagship phone, the Galaxy S5, a departure from its previous strategy to include the chips in its major devices, including the Galaxy S4, Galaxy S III, Galaxy Note 2 and most Note 3s. 

Samsung has cut deals with both Visa and MasterCard to enable the chips for NFC payments, including preloading the Visa payWave applet on the chips. 

But despite plans by two large Russian banks to launch NFC payments on embedded chips in coming months, the global partnerships between the big payments schemes and Samsung have so far yielded only two projects, both in Australia. 

There is no indication that the banks planning the launches in Russia, which NFC Times has learned are Russian Standard Bank and Sberbank, intend large rollouts. And Sberbank, Russia’s largest bank, appears more focused on host-card emulation now. 

Embedded chips may have a better chance for closed-loop applications, including access control and transit ticketing, using such popular contactless technologies as Mifare, which does not support HCE.  

Words: 

2,500 

Graphics:

Updated table: NFC embedded secure elements–payment projects launched and planned 

Among Topics Covered: 

  • Delays and possible abandonment of planned embedded chip projects by MasterCard and Visa
  • Impact of host-card emulation and the configuration in the Galaxy S5 on prospects going forward for the embedded secure element (eSE) and payments
  • Uncertain support going forward by Samsung and Visa and MasterCard for embedded secure elements
  • Speculation that Apple might support embedded secure elements and implications for technology
  •  More possibilities exist for eSEs for access control and transit ticketing, which use closed-loop contactless technology that does not now support HCE
  • Plans by Russian Standard Bank to launch on embedded chips, though project is delayed, possibly in part because of global politics
  • Problems by Sberbank working with Samsung; bank's views on current approach to eSEs by Visa and MasterCard
  • Launch by Westpac Australia of payWave (and PayPass) on embedded chips but no announcement from Visa
  • Pressure from telcos on Samsung to pull back from promotion of embedded chips.
  • Google’s withdrawal of support for eSEs and their uncertain future 

Among companies and organizations mentioned:

Samsung Electronics
Visa
MasterCard Worldwide
Russian Standard Bank
Sberbank
Westpac
Commonwealth Bank
Garanti Bank
PrivatBank
NXP Semiconductors
Tinkoff Credit Systems
Apple 

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

Networks: Contactless Transactions Soar as Pandemic Takes Toll on Cash

NFC TIMES Exclusive Insight – In announcing their respective quarterly results this week, both Visa and Mastercard, as expected, discussed the major disruption that Covid-19 is wreaking on the payments business. But they also noted that there is one unexpected victim of the pandemic: cash.

Prompted by Pandemic Fears, Last of Australia’s Big Four Banks Ends Apple Pay Holdout

May 12 2020

NFC TIMES Exclusive Insight – Citing the increased demand for cashless payments because of the Covid-19 pandemic, Westpac today became the last of Australia’s big four banks to adopt Apple Pay, ending a four-year holdout that had lasted months, even years longer than its major rivals.

Insight: MaaS Backers Believe New Mobility Platforms Could Help Transit Providers Win Back Their Customers’ Trust

NFC TIMES Exclusive Insight – With Covid-19 lockdowns causing mass transit ridership in many cities to virtually fall off a cliff–with such cities as London, New York and San Francisco reporting drops of more than 90%–transport providers worry that some riders may not come back, even after the pandemic ends.

In-Depth: Government Regulation of Mobility-as-a-Service Seen as Necessary to Encourage Widespread Adoption

Apr 16 2020

NFC TIMES Exclusive Insight – Government legislation will likely be needed for widespread adoption of Mobility-as-a-Service, or MaaS, to occur, according to UK-based Juniper Research, which believes that the regulations will be necessary to force MaaS providers, including transit service providers, to work together, as well as to persuade users to get out of their cars to cut carbon emissions.

Apple Pay Expands Support for Interoperable Closed-Loop Transit Cards in China, Though Not First NFC Pays Wallet to Do So

NFC TIMES Exclusive Insight – Apple on Wednesday expanded support for closed-loop transit payments across China, incorporating China’s T-Union interoperable transit cards in its Apple Pay service.

Insight: Virus Adds Urgency to Increasing Contactless Limits but Won’t Necessarily Drive Growth in Acceptance

NFC TIMES Exclusive Insight – While the Covid-19 virus outbreak is building awareness for contactless and NFC payments and is accelerating the increase in already low contactless transaction limits in Europe, it remains to be seen how much it will convince more merchants to accept contactless in the U.S.

Exclusive: After 10 Months, Sales of Public Transit Tickets in Uber App Still Make Up Small Share of Mobile Ticketing in Denver

Mar 24 2020

NFC TIMES Exclusive – Since last May, when ride-hailing service Uber officially began enabling customers to book and pay for public transit tickets in Denver directly in the Uber app, use of the service remains relatively low, accounting for less than 3% of all mobile tickets purchased by customers of Denver public transit agency RTD, NFC Times has learned.

Former Garmin Pay Technology Providers Sue Device Maker Claiming Unpaid Millions, Though Offer Scant Proof of Claims

NFC TIMES Exclusive –  The founders of former payments wearables provisioning company Fit Pay, which was acquired last September for $3.3 million by smartwatch and fitness band maker Garmin, have sued the device maker and two other parties, claiming they are owed millions in missed earn-out payments.

Helsinki to Roll Out Multimodal Contactless EMV Fare Payments, with Plans for Daily and Weekly Fare Capping

Mar 12 2020

NFC TIMES Exclusive Insight – The Helsinki Regional Transport Authority plans to accept contactless EMV payments on its multimodal system, including its buses, metro, trams and ferries. The rollout, expected to be completed in 2023, will also support daily and weekly fare capping.  

Transport for London’s Lucrative Sponsorship Deal with Google Shows Value of ‘Point of Sale’ Real Estate at Fare Gates

NFC TIMES Exclusive insight – Transport for London’s recent deal with Google to put the Google Pay Logo on more than 5,600 contactless gate readers across the large London Underground network is not the first time that the London transit authority has rented out its prime payments real estate to sponsors. Nor is it the only transit agency that has profited from sponsorship deals tied to its contactless EMV transit payments services. 

Amazon Launches Largest Checkout-Free Store; Clerks and POS Terminal Vendors Need Not Worry…Yet

NFC TIMES Exclusive Insight – Ecommerce giant Amazon expanded its no-checkout concept to its first “full-sized” supermarket Tuesday, in its headquarters city of Seattle, enabling shoppers to scan an app upon entering, pull products off of shelves and “just walk out,” with hundreds of cameras and numerous sensors having recorded everywhere the shoppers went in the store and everything they put into their shopping carts. A card on file in the app is charged as the customers leave.

Czech Banks See Growing Use of NFC Wallets with Smartphones and Wearables for Contactless Payments

Feb 18 2020

NFC TIMES Exclusive Insight – Banks in the Czech Republic say they are seeing significant and growing use of NFC-enabled smartphones and wearables, ranging from 6% to nearly 25% of all contactless payments–three banks told NFC Times–although a large majority of consumers continue to tap their contactless cards, not NFC devices, for in-store payments.