Payment is performed by tapping mobile device to a contactless POS terminal reader or when it comes to e-commerce and m-commerce transactions, by simplified “in-app” payment.
HCE (Host Card Emulation) components among other activities perform tokenization, digitization, mobile application activation, provisioning payment credentials to mobile devices, transaction cryptograms validation and fraud management.
Cards eligible for HCE payments are disposed to cardholder’s selection. Upon selection cards are digitized for contactless payments or DSRP (Digital Secure Remote Payments). Physical cards are being virtualized through tokenization and digitization processes. Tokenization stands for assigning DPANs of virtual cards to real PAN of physical card. Each virtualized card has different surrogate DPAN for each different Mobile device. Digitization means placing virtual cards in the mobile device (wallet) and provision of card profiles and payment credentials to be used in transactions.