1. A catalyst for mobile contactless payments adoption?
Nicolas Dinh, Business Leader, Mobile Payments Lead (Canada)
Host Card Emulation
A catalyst for mobile contactless payments adoption?

2. The Vision: One User Experience Enables a Network of Wallets for Shopping at Home, in Stores, and on the Go
Connected digital wallets/apps from issuers and retailers
At home
Smartphone
Tablet
PC, Laptop
Fridge*
TV*
Game Console*
Merchant Apps
PayPass Connected
Offers Services
Digital Receipts
Returns Service
Wallets
MasterPass Connection +
Value-Added Services
Network
In store*
Tablet
Kiosk
Mobile in Aisle
POS via NFC, QR
On-the-Go*
Store Window
Bus Stop
Subway Platform
Airport
Anywhere
* Illustrative only, functionality not yet available
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3. MasterCard is Enabling New and Better Shopping Experiences
Tap & Go
Easier, Faster, Safer
Digital Transactions
In-Aisle
In-App
On-line
Any device

4. How?
and
Tokenization
Digitization

5. Host Card Emulation (Virtual Card Emulation): What is it?
Traditional SE-Based Card Emulation
Host-Based Card Emulation

6. Acceptance Infrastructure
MasterCard’s Remote SE Solution: Leverage HCE to provide flexibility in mobile contactless deployment
Cloud
Create a mobile payment solution without a local SE to complement the existing Mobile PayPass solution.
Obtain one-time use payment credentials from a hardened cloud service.
Although network connection is required to obtain payment credentials, can be used ‘offline’ since credentials are stored locally on device.
Acceptance Infrastructure
Card present transaction.
Interoperable with existing PayPass payment terminals in market (EMV and magstripe).
Use the NFC interface available on mobile devices.
Will support high-value transactions with right payment terminal.
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7. MasterCard’s Remote SE Solution: Cont’d
Security
Online authorization required.
Mobile PIN CVM required.
Mobile PIN never stored on device.
New cryptographic scheme to reduce risk exposure.
Encrypted local storage.
Supports tokenization of the payment credential.
Strengthen fraud detection systems.
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8. Mobile Contactless: Challenges-to-date
Business relationships to access SE are too complex.
Vertical integration.
Cost to access SE too high.
Technical build/deployment is too complex.
Onboarding experience is challenging (should follow the app paradigm).
Not enough of NFC-capable devices in market. Apple?
Not enough of contactless acceptance.
No support for high value transactions.
Does HCE Solve for it?
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9. HCE: A market-by-market, issuer-by-issuer deployment choice.
HCE or SE?
Local market dynamics:
Ease of access to SE
Willingness to collaborate
Readiness of MNOs and TSMs
Regulatory
Issuer business objectives:
Risk aversion (non SE-based security model)
Vertical integration
Partnership strategy
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10. Thank You
Q&A