Why is Host Card Emulation a Big Opportunity for Technology Providers?

Overall, HCE is a multi-dozen billion dollar opportunity, as per our estimates. Host Card Emulation (HCE) is the 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. It's understood that HCE technology development would be done on a limited basis by banks themselves (without requiring mobile operator support). However, they likely don’t have the technology and expertise within their organizations. So can this be a huge opportunity for technology providers if they start focusing on developing HCE solutions?

HCE gained relevance when Google announced support for HCE in the KitKat version of Android. With Host Card Emulation and cloud issuance, millions of phones could be enabled for payment with a simple app update. I had earlier talked about 19 banks who have already adopted HCE ...

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