As the debate regarding the best way to provision near field communication (NFC) services continues, ownership of the secure element (SE) is still a major barrier to progress.
Or is it?
The long discussions between banks, mobile network operators, handset manufacturers and service providers regarding who should ‘own’ the SE and who should manage the access rights, has meant that consumers are still waiting for widespread mobile payments solutions to hit handsets and app stores.
Today, SE in the cloud is no longer a theoretical concept but a tried and tested option for the NFC marketplace. The capability it offers will bring significant benefits to many NFC market participants including cost savings and increased control and security.
1. Independence and direct control
Application developers and service providers do not have to relinquish control of their product. By deploying services to the cloud, no intermediaries are necessary to access the SE. This narrows the gap between application issuers and customers, ensuring a consistent brand and user experience across all available NFC services.
2. Easier integration with third parties
Being in control of the SE allows easy integration with any third party provider and any business model, on your terms. These include mobile network operators, NFC device manufacturers and trusted service managers (TSMs).
3. Lower costs
SE integration in mobile devices is expensive and subject to SE domain fees. By deploying the SE in the cloud, the NFC value chain will be shortened as fewer parties in the ecosystem need to be involved; this leads to lower provisioning costs.
4. Greater security and improved risk management
Direct access to the SE enables instant fraud detection and allows immediate blocking of an application. Additionally, the computing power of an SE in the cloud is higher than that on a mobile device. This offers the option for more advanced on-device risk management. Enhanced security means better customer satisfaction and higher adoption in the long-term.
5. Multiple cards, EMV applications and payment schemes
Storage capacity on a physical SE is limited. In the cloud, storage is scalable and can be expanded to meet individual requirements and to support any card, application and payment scheme. The greater the array of choices available, the more options for developing and expanding the solution in the future.
Ultimately, SE in the cloud is about control. Control of costs, security, partners and, most importantly, management of your solution’s position in the value chain. Players in the NFC ecosystem don’t want to be strong-armed into agreements with other companies because it is ‘necessary’; mutually beneficial and productive relationships will drive this ecosystem forward and offer genuinely valuable services to consumers.
3. As the debate regarding the best way to provision
near field communication (NFC) services continues,
ownership of the secure element (SE) is still a
major barrier to progress.
Or is it?
Mobile payments: Why SE in the cloud?
4. The long discussions between banks, mobile
network operators, handset manufacturers and service
providers regarding who should ‘own’ the SE and
who should manage the access rights, has meant that
consumers are still waiting for widespread
mobile payments solutions to hit handsets and app
stores.
5. Today, SE in the cloud is no longer a
theoretical concept but a tried and tested option
for the marketplace. The capability it offers will bring
significant benefits to many NFC market participants
including cost savings and increased control and
security.
6. By moving the SE to a remote environment (the
cloud), the intricacies and costs of managing a physical
SE can be bypassed. The benefits of SE in the cloud
are numerous – here we share with you our top five
reasons to consider this form factor:
7. 1. Independence and direct control
Application developers and service providers do
not have to relinquish control of their product. By
deploying services to the cloud, no intermediaries are
necessary to access the SE. This narrows the gap
between application issuers and customers, ensuring
a consistent brand and user experience across all
available NFC services.
8. SE Issuer
SE NFC
SE
Provisioning via a physical secure element:
access via the SE issuer
Provisioning via a secure element in the cloud:
direct access to SE
NFC
Application Issuer
Application Issuer
9. 2. Easier integration with third parties
Being in control of the SE allows easy integration
with any third party provider and any business
model, on your terms. These include mobile network
operators, NFC device manufacturers and trusted service
managers (TSMs).
10. SE integration in mobile devices is expensive and
subject to SE domain fees. By deploying the SE in the
cloud, the NFC value chain will be shortened as
fewer parties in the ecosystem need to be involved; this
leads to lower provisioning costs.
3. Lower costs
11. Direct access to the SE enables instant fraud
detection and allows immediate blocking of an
application. Additionally, the computing power of an
SE in the cloud is higher than that on a mobile device.
This offers the option for more advanced on-device risk
management.
4. Greater security and improved risk
management
12. Storage capacity on a physical SE is limited. In the
cloud, storage is scalable and can be expanded to
meet individual requirements and to support
any card, application and payment scheme. The
greater the array of choices available, the more options
for developing and expanding the solution in the future.
5. Multiple cards, EMV applications
and payment schemes
13. Additionally, for those worried about connectivity
issues, SE in the cloud can also pre-authorise
payments, allowing consumers to make transactions
even when a connection to the server cannot be
established.
14. Ultimately, SE in the cloud is about control. Control
of costs, security, partners and, most importantly,
management of your solution’s position in the value
chain. Players in the NFC ecosystem do not want to be
strong-armed into agreements with other companies
because it is ‘necessary’; mutually beneficial and
productive relationships will drive this ecosystem
forward and offer genuinely valuable services to
consumers.
Conclusion
15. For more information, please download our
Secure Element in the Cloud brochure
www.bellid.com
16. With over 20 years of expertise, Bell ID is considered the world’s leading provider of
lifecycle management solutions for tokens (e.g. smart cards, mobile NFC phones)
deployed in single and multi-application programmes.
www.bellid.com
David Orme
Chief Executive Officer
info@bellid.com
