Cambridge, UK - 20 February 2014
Enabling delivery of mobile payment and loyalty services without a secure element
Proxama PLC (AIM: PROX), a global mobile marketing, loyalty and payments company, has partnered with Cryptomathic, a leading security provider, to launch a mobile contactless payment solution, called EMV Tokenised Transaction (EMV-TT). The solution leverages Host Card Emulation (HCE), taking away the reliance on a secure element and enabling contactless payments to be made in the same way as using a contactless card, securely, via any NFC mobile handset.
Previously, making contactless payments with a mobile device was dependent upon a local hardware based secure element chip, such as a SIM or embedded secure element. The new Proxama-Cryptomathic solution can be used to enable existing mobile applications with a new software-based security infrastructure that works across debit, credit, pre-paid and gift card schemes. It does not require any POS infrastructure changes to be made by merchants because it works with existing contactless payment terminals.
With EMV-TT, any card issuer can now launch a mobile contactless payment service without having to rely on a secure element provider or Trusted Service Manager (TSM), cutting down the complexity, cost and providing greater flexibility for value added services. As a standalone solution, EMV-TT leverages existing card issuance and authorisation systems and Proxama's TapPoint® service platform and mobile wallet SDKs.
EMV-TT has been also designed to enable a simple migration from the HCE to the standard Secure Element based approach or vice-versa should the bank or network operator wish to change its deployment or partner strategy in the future.
Neil Garner, CEO and founder, Proxama, comments: "We're seeing a lot of change in the payments industry and consumers are increasingly comfortable with card-based contactless payments, with huge appetite to use their smartphone more. The EMV-TT solution developed in partnership with Cryptomathic enables card issuers to offer mobile contactless as part of their existing service offering. We're very excited to be working with Cryptomathic as they are the Gold standard for EMV payment issuance and high security processing for many major financial services companies."
With more NFC devices rolling out every day and HCE available on the vast majority of Android devices running the latest OS, KitKat, the market opportunity for NFC payments is growing. We have designed the EMV-TT technology such that it seamlessly integrates with other mobile consumer engagement services delivered from the same TapPoint® platform."
Morten Landrock, EVP EMEA, Cryptomathic, comments: "Using EMV-TT, financial services providers can benefit from offering a simplified, secure payment method that is not reliant on hardware based technology. We also see this as an opportunity for mobile operators to leverage this new technology, and enhance existing SIM based security for payments and loyalty. Our experience in e-banking helped us understand what needed to be done to make EMV-TT secure enough for widespread use."