The key difference from previous smartphone models will be the presence of an NXP PN65 electronic chip . This chip allows you to record bank card data and make payments and transactions. In order to pay using your phone, you just need to bring it to the cash register reader.
This function has already been successfully tested on the previous, fifth model of the smartphone. And it was expanded in the sixth - with the following, fundamentally new functions.
In 2012, MasterCard Europe reported the results of the year, according to which the issuance of PayPass-enabled cards increased by 50% compared to January of the same year and the technology became widespread in European countries. PayPass cards are used in approximately 550,000 retail outlets worldwide. 48 countries. And by 2013, the number of contactless bank cards increased to two hundred million.
This, according to Peter Bayley, executive director of Visa Europe, was the reason for the development of a fundamentally new technology based on the actively working NFC.
Let's look at all aspects of this technology, giving simple examples of its use.
The phone can emulate not only bank cards. It can also work as a discount card, a magnetic pass, a key, an insurance policy, a parking card, a fuel card... it can combine all the functionality of cards that previously worked separately.
A phone connected to a network, communicating with different servers and using digital tokens for mobile and online transactions, becomes a universal tool for almost any process requiring user identification.
But not everything is as rosy as it might seem at first. Host-based Card Emulation has a number of disadvantages. The most important of them is the security of such payments.
In fact, smartphone virus software is capable of carrying out any transactions using his cards without the user’s knowledge, activating them on third-party servers. The second significant drawback is the possible lack of a network, which paralyzes any operations with such a smartphone. Such problems can arise while roaming if the network is overloaded or there is no Internet access. And the last problem - few people will store keys to apartments, safes, security passwords and other important keys in the form of files on the network.
For transport services, HCE technology is also not applicable in the near future due to very high requirements for the speed and reliability of the ticket carrier. There can be no talk of any Internet here. Moreover, unlike the payment industry, which uses open standards, the transport industry is mainly based on proprietary technologies (proprietary technology of limited use), which cannot simply be emulated.
Solving problems with eliminating these shortcomings is not a long process. Visa has announced a complete transition of its further developments to provide innovative technology. The emergence of this standard is one of the most interesting and promising inventions of the decade, the development of which will fundamentally change the information field.
Let's return to Russian realities and try to analyze the situation in the near future. Not every store in Russia is equipped with even primitive magnetic stripe readers for bank cards. Leading Russian banks Sberbank and VTB Bank have not yet implemented instant contactless payment technologies into the functionality of their cards. There is a daily limit of one thousand rubles for these payments in our country. The need to develop and introduce a national payment system similar to international ones has never been greater. Existing domestic scientific developments on this topic are far from ideal. And even the cheaper iPhone 6 will be able to be purchased by no more than one percent of Russians. The novelty will remain a curiosity, even if it becomes “unrealistically fashionable.” It is too early to talk seriously about global changes, that plastic cards, and especially paper money, will disappear. The domestic market is open to innovation - but unpredictable.
(c) https://card-online.ru/articles
This function has already been successfully tested on the previous, fifth model of the smartphone. And it was expanded in the sixth - with the following, fundamentally new functions.
- The storage of data about payment or any other mobile applications running on a smartphone is now located in the so-called “cloud” server. Not on a specific server, where all current information processing takes place, but on a system of remote servers that have various functions for administering and processing the system.
- Visa, Master card and American Express announced the creation, together with Apple, of a new payment system based on payments using smartphones. Now it will be possible to officially “record a card” of these payment systems on your phone and (possibly) use it without a limit on transactions.
- The NXP PN65 chip can emulate more than just bank cards. You can put any contactless card on your smartphone, be it a pass at work, a parking pass, a discount card - a card that has a variety of functionality. A specially developed mobile application is downloaded to the smartphone, a virtual image of the card is created - and the need for extraneous physical media disappears.
- The means of user identification will be a fingerprint. Scanning the fingerprint of the smartphone owner with a smartphone will become the key to access the mobile payment application. Whether entering a PIN code will be replaced by this method of biometrics is still unknown. It is possible that these security functions will work in parallel.
- There are persistent rumors that the sixth iPhone will be much cheaper than previous models. This is evidenced by Apple's record orders for the production of a new smartphone. In China alone, 83 million sixth iPhones were ordered for production by the end of this year, which will increase the total income of this country by 1%.
In 2012, MasterCard Europe reported the results of the year, according to which the issuance of PayPass-enabled cards increased by 50% compared to January of the same year and the technology became widespread in European countries. PayPass cards are used in approximately 550,000 retail outlets worldwide. 48 countries. And by 2013, the number of contactless bank cards increased to two hundred million.
This, according to Peter Bayley, executive director of Visa Europe, was the reason for the development of a fundamentally new technology based on the actively working NFC.
Let's look at all aspects of this technology, giving simple examples of its use.
So:
- A regular payment using a regular card without NFC technology is carried out using a card reader and entering a PIN code.
- NFC payment - a bank card or smartphone is applied to the reader, payment occurs, the PIN code is not entered. Data on completed transactions is stored on a secure bank server and is calculated once a day. As a rule, there is a limit for NFC payments, which is different in each country.
- HCE - allows you to combine all types of cards using contactless chips with the NFC chip of your smartphone. The need to carry cards separately and your phone separately will disappear.
The phone can emulate not only bank cards. It can also work as a discount card, a magnetic pass, a key, an insurance policy, a parking card, a fuel card... it can combine all the functionality of cards that previously worked separately.
A phone connected to a network, communicating with different servers and using digital tokens for mobile and online transactions, becomes a universal tool for almost any process requiring user identification.
But not everything is as rosy as it might seem at first. Host-based Card Emulation has a number of disadvantages. The most important of them is the security of such payments.
In fact, smartphone virus software is capable of carrying out any transactions using his cards without the user’s knowledge, activating them on third-party servers. The second significant drawback is the possible lack of a network, which paralyzes any operations with such a smartphone. Such problems can arise while roaming if the network is overloaded or there is no Internet access. And the last problem - few people will store keys to apartments, safes, security passwords and other important keys in the form of files on the network.
For transport services, HCE technology is also not applicable in the near future due to very high requirements for the speed and reliability of the ticket carrier. There can be no talk of any Internet here. Moreover, unlike the payment industry, which uses open standards, the transport industry is mainly based on proprietary technologies (proprietary technology of limited use), which cannot simply be emulated.
Solving problems with eliminating these shortcomings is not a long process. Visa has announced a complete transition of its further developments to provide innovative technology. The emergence of this standard is one of the most interesting and promising inventions of the decade, the development of which will fundamentally change the information field.
Let's return to Russian realities and try to analyze the situation in the near future. Not every store in Russia is equipped with even primitive magnetic stripe readers for bank cards. Leading Russian banks Sberbank and VTB Bank have not yet implemented instant contactless payment technologies into the functionality of their cards. There is a daily limit of one thousand rubles for these payments in our country. The need to develop and introduce a national payment system similar to international ones has never been greater. Existing domestic scientific developments on this topic are far from ideal. And even the cheaper iPhone 6 will be able to be purchased by no more than one percent of Russians. The novelty will remain a curiosity, even if it becomes “unrealistically fashionable.” It is too early to talk seriously about global changes, that plastic cards, and especially paper money, will disappear. The domestic market is open to innovation - but unpredictable.
(c) https://card-online.ru/articles
