HCE/NFC Technology Analysis

April 24, 2014 – The conversation about Host Card Emulation (HCE) and its coupling with Near Field Communication (NFC) is generating a great deal of excitement about mobile within the electronic payments industry.

In his latest Drop Labs post, Cherian Abraham, Mobile Commerce and Payments Lead at Experian Global Consulting, Advisor at SimplyTapp and ModoPayments, and Affiliate Analyst at Yankee Group, shares insights on NFC/HCE and Tokenization.

Inspired by HCE discussion on LinkedIn along with comments from PayPal’s David Marcus, Abraham looks toward the future and posits what’s next in mobile payments. He speaks to how merchants could take advantage of a combination of NFC/HCE, how tokens themselves instead of PAN’s could occupy mobile wallets and asks, “Can we start using any and all available radios and capabilities on the device to reduce fraud risk and payments friction?”

Abraham considers advantages and disadvantages of HCE, new HCE technologies reducing barriers for NFC usage, other use-cases for HCE such as QR and BLE, and how HCE/NFC increases payments security.

Read Abraham’s analysis here: http://www.droplabs.co/?p=1034