The Evolution of Host Card Emulation and Tokenization

Kona White PaperThis 15-page white paper produced by South Korea-based smart card and mobile payment solution provider Kona International provides an introduction to NFC, host card emulation (HCE) and tokenisation as well as smart cards, contactless cards and magnetic stripe cards.

The paper starts by looking at smart chip card technology, explaining the differences between magnetic stripe cards, EMV chip cards and contactless cards. It then looks at contactless card emulation on a mobile device and gives an overview of host card emulation (HCE) technology and tokenization. Diagrams illustrating how the technologies differ are shown throughout the paper.

The authors then compare magnetic stripe cards, smart cards, contactless smart cards, mobile contactless smart cards and HCE with tokenization in terms of issuer cost and convenience, merchant cost, user convenience, reliability and security and conclude that HCE with tokenization will ultimately become “the order of the day” in both the developed and developing world.

This document was produced in October 2014 and is sponsored by Kona International. It has been approved by the NFC World+ editorial team.

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This item is part of the Mobile Payments Knowledge Centre.