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NFC mobile services: Cost considerations of deployment models

NFC mobile services: Cost considerations of deployment models

SIMalliance published an illustration intended to help NFC service providers to understand the cost considerations of different NFC deployment models.

The illustration compares the known and hidden conceptual costs of deploying NFC services via three deployment technologies: UICC (secure element), Embedded Secure Element (eSE) and Host Card Emulation (HCE).  Within the visual, SIMalliance also evaluates the ‘risk of attack’ associated with each model and suggests that this is also a cost that service providers need to consider.

NFC Cost Considerations

NFC Cost Considerations

SIMalliance presents a number of key conclusions within the illustration:

  • HCE may appear more cost effective on first glance, however as many deployment costs are variable / undefined, total outlay may be comparable with SE deployment, yet the security risk is higher.
  • Service providers face a level of ‘unknowns’ with HCE deployment; responsibility to establish the right processes and relationships rests with them.
  • SE deployment costs and processes are transparent as it’s an established technology.
  • Collaboration creates opportunities:
  1. Sharing costs with a partner will lead to cost-efficiencies.
  2. MNO services such as data and messaging can be leveraged; services can be promoted through MNO wallets or deployed phones.
  3. Usage of an MNO’s SIM can enhance service security, reducing risk, increasing customer satisfaction and reducing cost.
  4. An OEM’s eSE can provide additional security to create innovative service offerings / cross marketing opportunities.
  • SE manufacturers have strong NFC credentials; they are experts in deployment and have technical infrastructure in place.

The post NFC mobile services: Cost considerations of deployment models appeared first on Payments Cards & Mobile.

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