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The number of anticipated wearable devices that can be used as payment devices has increased by one with the debut of the Wirecard Smart Band from processor Wirecard AG.
Munich, Germany-based Wirecard is using host card emulation, a variant of near-field communication, in its devices. With HCE, banks and other issuers can let consumers load wallets with tokenized downloads from a cloud server rather than store card details on a SIM card or other secure element embedded in the phone. SIM cards usually are controlled by handset manufacturers or mobile operators.
The Royal Bank of Canada breathed apparent new life into HCE with its December announcement it would test a mobile app that uses HCE to load card credentials into a mobile wallet. RBC anticipates making the service available to its customers following the test.
Wirecard’s device is connected to an app on a smart phone via a Bluetooth low energy connection. Wirecard’s implementation of HCE involves using a token for each payment transaction. The token, stored in a secure server, replaces card information with randomized data that are useless to thieves.
Transaction information is displayed on the device’s screen and in the smart-phone app. Wirecard says the device also can be loaded with non-payment applications for use with access control and loyalty schemes.
Wirecard did not say when the Smart Band might be available or at what cost, or which organizations might issue it.
Apple Inc. is expected to launch its Watch early this year, a device that combines payments, data and messaging into a NFC wristwatch.
