Landmark Opportunity for Technology Providers for Developing HCE based Payments

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. With Host Card Emulation and cloud issuance, millions of phones could be enabled for payment with a simple app update. Payment giants such as Visa and MasterCard are also working on HCE specifications. It has opened an alternative path to contactless payments and other services that have no reliance on hardware based secure elements.

> Why is Host Card Emulation technology offering in great demand?

> What is the Total Addressable Market and Segmented Addressable Market for HCE?

> What are the challenges of HCE?

> Who are the technology providers and who is doing what for whom?

GrowthPraxis’s Report Opportunity Assessment for HCE Technology Providers – Latest Market Report answers these questions in great detail. It covers both the product companies as well as IT consulting/services firms.

The total value of Mobile payments in 2014 was USD [Hidden] billion, wherein the total addressable market and the segmented addressable market has been provided. Nearly 80% of mobile payments (other than iOS) will be contributed by Android devices. Android KitKat and other upcoming versions will support HCE resulting in more HCE usage. GrowthPraxis estimates that around 80% of Android devices used for making payments will support HCE.

With Google poised to launch Android Pay at the upcoming Google I/O conference (May 28-29, 2015), HCE may see a boost in adoption as it itself is a core technology offered by Google and can certainly be expected to be included in the anticipated Android Pay solution. With the rapid increase in HCE based devices on the market, we at GrowthPraxis estimate that the total number of HCE technology users globally will reach xxx Million by 2020.

* Total Addressable Market is Global Mobile Payments contributed by Android Devices

* Segmented Addressable Market is Global NFC payments made through Android Devices

With Host Card Emulation and cloud issuance, millions of phones could be enabled for payment with a simple app update. For technology players, the opportunity lies not only in developing core HCE solutions but in other aspects as well. There have been revelations that HCE, as part of the mobile OS, can be disrupted via malware. Communication between the NFC controller and the HCE-enabled app can be tracked by malware applications. This is one of the areas where technology players can focus on: creating the most secure HCE environment possible.

Table of Contents

Host Card Emulation

Demand Side Analysis:

> What is the need for Host Card Emulation (HCE)?

> Total Addressable Market and Segmented Addressable Market (2015 and 2020)

HCE Opportunity Sizing

Using Top down Approach

> How many Banks & Financial Institutions have implemented HCE (and How)?

> Future Outlook at HCE

> Challenges

Supply Side Analysis:

> Technology Providers and "Who is doing what for whom?"

Host Card Emulation

> Our Take on the HCE Opportunity as a Technology Provider

> Company Profiles

Four Profiles – Technology Providers