Host Card Emulation Platform Tokenization Services for Banks

What is Host Card Emulation (HCE)?

It is the innovative technology which is integrated in the operational system of a mobile device and allows for mobile payments in physical POS, imitating a payment with a contactless card!

Instead of a plastic card the consumer uses their mobile phone! For the moment, this technology is only available for devices with an Android operational system.

HCE card tokenization for mobile phone usage

The HCE technology (EMVCo standard) allows for the insertion, through Cloud Services, of one or more payment card data (e.g. Visa/Mastercard/American Express) of the consumer, enabling the mobile phone to make contactless payments in the physical POS of any merchant in the market. As such, the consumer doesn’t need to carry plastic cards in a physical wallet, since these already ‘exist’ in the mobile phone!

In the HCE technology, the real number of the plastic card is replaced by a new random number (which looks like it is a real one) and it is called a token. A token represents a real card and follows the user in the journeys of all their transactions with the specific card. In a mobile payment it is just the token that travels through the POS (through NFC technology) and not the real data of the user’s card, rendering the payment completely secure and safe from any sort of phishing of the user’s data. This is the core benefit of the NFC technology, the easiness of conducting payments with total security and full simplicity.

Cardlink as an HCE Tokenization Service Provider

The banks, as card issuers (Visa, Mastercard, American Express) started offering tokenization abilities to their customers who have cards through their mobile wallets. Cardlink as an HCE Tokenization Payment service providers through mobile phones in the Greek market (TSP or Tokenization Service Provider), maintains a self-owned and super innovative HW system, which is unique in the broader geography of Greece, supporting all card schemas (VISA/ MC / AMEX) and fully compliant with the EMV tokenization standard.

Cardlink’s HCE Tokenization Payment platform services, offers to the banks integrated TSP solutions for the whole range of HCE payments through mobile phones. Through the ‘Local TSP’ solution where tokens (token vault) are created and transferred locally (e.g. only within Greece), various needs are covered such as tokenization for private label cards, loyalty cards, vouchers, identification etc. The ‘TSP Token Gateway’ solution, serves the connection of the bank wallets and applications with other TSPs such as Visa (VTS) and Mastercard (MDES), but with other wallets too such as the OEM-Pays e.g. Samsung Pay, Google Pay, Apple Pay etc.

Cardlink offers to banks innovative tokenization services for mobile phone payments!

Why HCE?

  • Technological advance and steps towards the future of card payments
  • Ability to conduct mobile payments to merchants’ physical POS with complete security
  • Integration of all card payments – Visa, Mastercard, American Express
  • Integration of all other cards such as loyalty, vouchers, coupons
  • Connection with other third-party tokenization providers
  • Ultimate security payments
  • Compatibility with all merchants’ POS for contactless transactions

Benefits for Banks

  • Exposure of the bank’s technological image
  • Innovative service for the bank’s customers with cards
  • Minimizing card costs (less plastic)
  • Significant additions in the abilities offered through the bank wallet applications
  • Performance improvement and usage increase
  • Complete security of payments
  • Certification of user with CDCVM options (eye, face and fingerprint recognition)
  • Compatibility with Visa/Mastercard/AMEX/EMV Co
  • SDK plug-in available for mobile wallets from Cardlink
  • PCI CP (Card Production) certification