Host Card Emulation (HCE) is a term describing an on-device technology that permits a phone to perform card emulation on a Near Field Communication (NFC)-enabled device without relying on access to a secure element. This new technology gained relevance when Google announced support for HCE in the KitKat version of its Android OS.
Another major technology gaining huge interest among financial services firms in Tokenization. Tokenization is a process in which the Permanent account number is replaced by a surrogate value called Token. This token is just a number, whose only function is to point to the original card data, which is stored in a secure host called the ‘Token Vault’. As it’s just a surrogate number assigned, it will be cancelled after the transaction is complete.
With Visa and MasterCard’s endorsements and implementation of tokenization and Apple Pay’s adoption of Tokenization for payments, many other companies have followed suit in implementing Tokenization solutions both for digital and mobile payments. In the transitioning scenario of payments to cloud-based technology, tokenization plays a key role in securing the sensitive information of the users. Banks and financial institutions have partnered with digital payment technology providers to implement HCE and Tokenization to their system.
The report provides detailed insights based on demand side analysis and supply side analysis of HCE and Tokenization and answers the following questions:
- Why is Host Card Emulation and Tokenization technology offering in great demand?
- What is the Total Addressable Market and Segmented Addressable Market for HCE and Tokenization?
- What are the challenges of HCE and Tokenization?
- Who are the technology providers and who is doing what for whom?