Banking Exchange Magazine Logo

Banks warm to HCE, but remain wary

Decisions hang on price, utility, and protection

  • |
  • Written by  Website Staff
  • |
  • Comments:   DISQUS_COMMENTS
Banks warm to HCE, but remain wary

Banks weigh security, usability, and cost when selecting third-party support for host-card emulation adoption, says Mobey Forum in a new white paper.

Almost 70% of respondents to survey sponsored by the global association are keen to outsource some or all of any future HCE solution to third-party providers. HCE is the presentation of a virtual and exact representation of a smart card using only software.

“HCE has the potential to fundamentally change the layout of the mobile payments landscape, but it comes with its own complexities,” says Zaf Kazmi, chair of the Mobey Forum’s HCE Workgroup and head of Mobile Payments and Commerce at Spain’s CaixaBank. “Some financial institutions are attracted by HCE, others will continue to place their faith in traditional secure elements, and some will seek to use a mixture of the two. Understanding the market dynamics and key control points will be essential to success.”

In addition to the proprietary research, the paper also presents a history of HCE and explains its position as an alternative to traditional near field communication payments.

“HCE is a shot in the arm for the slow-moving NFC payments industry so, in this paper, we have outlined the pros and cons together with business model analysis, enabling banks and other institutions to make more informed decisions,” says Kristian Thure Sørensen, member of the organization’s HCE Working Group and senior manager, Corporate Strategy at NETS, the Nordic payments provider. “HCE does resolve some of the deployment ecosystem’s complexity, but it also generates some of its own.”

Download Mobey Forum’s “Host Card Emulation in Payments: Options for Financial Institutions [Registration required]

back to top


About Us

Connect With Us


Webinar: From KYC to IDV

How three leading banks are utilizing cutting-edge
digital tools to onboard, win, and wow customers

Time/Date: June 23, 2021 11:00 a.m. ET

Digital adoption, already moving at warp speed, accelerated seven years into the future during the COVID-19 pandemic. As the number of bank branches continues to fall, with at least one study predicting all branches will disappear by 2034 (Fox Business) and foot traffic declining (Vox), today’s most innovative banks are charting a new, digital-first path to win over customers while increasing security, meeting KYC compliance requirements, and winning customers to drive revenue.

In this webinar, you’ll hear from John Baird, Founder & CEO of Vouched, Tyler Crawford, COO of Bankers Healthcare Group, Anand Sathiyamurthy, CPO of Flagstar Bank and Daniel Sheehan, Chairman & CEO of Professional Bank as they describe their vision for digital transformation and how customer expectations are changing to digital first. They’ll also explore how fostering an innovation mindset creates new ways to tackle complex KYC problems and allows them to quickly compete in new markets and win customers.


This webinar is brought to you by:
Vouched Logo