NFC Times Exclusive insight – Yandex.Money, sometimes called the “Russian PayPal,” is using host card emulation for its new NFC-enabled payments service, a Yandex.Money representative told NFC Times. PayPal earlier told NFC Times it also plans to use HCE for its app in the U.S.
Yandex.Money in April announced the service, noting that its Android app has been updated to support NFC payments in supermarkets, pharmacies, cafes, restaurants and railway stations, as well as at certain public transport stations. There is still a relatively low penetration of contactless point-of-sale terminals in Russia.
The HCE-enabled app loads tokens and keys supporting a “virtual” MasterCard-branded card, which Yandex.Money issues itself or though a small issuing partner. This virtual card is linked to an e-wallet, which users load with funds from their bank cards to fund the NFC transactions from the virtual cards. The e-wallet also funds Yandex.Money’s non-NFC e-commerce transactions. To complete an NFC transaction, users enter a mobile PIN code tied to the virtual card for every purchase that exceeds 1,000 rubles (US$15.40).