HCE Based NFC Payments via Spain’s Bankinter, Mobile Virtual Card Solution

In 2013, Spanish lender Banktinker and Seglan developed a mobile based payment solution to enable customers to securely and instantly create a onetime-use debit or credit card on their smartphone. Bankinter has now announced that the Mobile Virtual Card (MVC) solution is now ready for commercial launch around Q2/Q3 2014.

MVC is a technology allowing a multiplicity of different implementations, said Jacobo Díaz, Director of Innovation at Bankinter. We have dedicated an entire year to reach the adequate security level for EMV on line payments, based on the results of the 'risk assessment' process performed by Fraunhofer AISEC laboratory.

  • The user downloads the MVC application into his Smartphone.
  • He then securely registers, via either web, phone banking or at the banking branch.
  • One or many of his existing debit or credit cards can be used for EMV mobile payments at merchant locations.
  • This solution does not require any changes to the existing acceptance infrastructure (POS terminals) for NFC proximity payments.
  • It does not require to have network connectivity at the time of payment.
  • The solution also enables the bank to autonomously define its own business model and brand image in mobile payment media, without entering into an agreement with third parties.
  • Basically, the cards registered by the user can be updated with the help of a remote management system 100% integrated into the Mobile Virtual Card client-server system of the financial institution.

Blackberry has been the company leading Host Card Emulation technology, and we are glad to recognize their major contribution to HCE-based mobile payments. Google later announcement (Nov/13) about HCE support on their new Android 4.4 Kit Kat operating system has allowed us to build a wide enough commercial proposal for our customers. We are convinced that iOS and Windows Phone will incorporate HCE very soon, said Diaz. The Mobile Virtual Card solution eliminates the main difficulties that have slowed the commercial launch of NFC payments and make it in compatibility with the standards of the financial industry on which many banks have invested along the last 10 years he added.