1. What is
HOST CARD EMULATION
and why it matters
Host Card Emulation
(HCE) was introduced
by Google as a feature
of the new KitKat OS.
It was endorsed by
Visa, MasterCard
It allows cards to be issued from the cloud and
used for mobile payment transactions anywhere.
Why does it matter?
Visa
MasterCard
HCE powers NFC mobile payments at physical stores
94% 6%
Source: eMarketer/US Census Bureau
of transactions
happen in the
real world
2 in 3 phones to come with
NFC by 2018
1.2B
2018
total e-commerce
1%
mobile commerce
(part of e-commerce)
86% of POS terminals in
North America will accept
NFC payments by 2017
86% 78% 38%
North
America
Source: IHS Research Source: Berg Insight
1.5 Billion mobile wallets to be in use by 2018
Source: Juniper Research
What’s in it for me?
275M
2013
1200
1000
800
600
400
200
Phones with NFC (millions)
HCE gives banks
freedom to deploy
mobile payment
systems everywhere.
Europe Rest of
the world
Banking, merchant
and other apps can
easily be enabled with
mobile payments at
physical stores.
Ultimate consumer experience:
pay anywhere with the
apps you love and trust.
Sources
• Berg Insight: http://www.nfcworld.com/2012/06/07/316112/berg-86-percent-of-pos-terminals-in-north-america-will-accept-nfc-payments-by-2017/
• eMarketer/US Census Bureau: http://www.emarketer.com/Article/Total-US-Retail-Sales-Top-3645-Trillion-2013-Outpace-GDP-Growth/1010756
• IHS Research: http://www.nfcworld.com/2014/02/12/327790/two-three-phones-come-nfc-2018/
• Juniper Research: http://www.nfcworld.com/2014/05/20/329241/juniper-predicts-1-5bn-mobile-wallets-2018/
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