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Instead, a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on the device, with each transaction authorized via a one-time unique dynamic security code.
Instead, "a unique Device Account Number is assigned, encrypted and securely stored in the Secure Element on your device… [and] each transaction is authorised with a one-time unique dynamic security code".
The technology makes use of the Secure Element on the phone to support "a comparable level of security" to in store purchases, according to the two companies.
The DAN is stored in the "secure element" of an NXP chip in the phone.
When you come to make an NFC payment, you unlock the secure element via TouchID (thus providing a "cardholder present" authority to the issuer) and the DAN is sent via the retailer to the bank.
Apple of course is confident that it has hit upon a secure solution, by combining its fingerprint-scanning technology Touch ID with a new 'Secure Element' chip located within its handsets that store users' credit card data – but that pays retailers with proxy data so that sensitive information is never being exchanged through the air.
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There are a number of technologies that promise to kill the password — biometrics like the fingerprint authorization popularized by the new iPhone, USB security tokens, Trusted Platform Modules (TPMs), embedded secure elements (eSEs) and smart cards.
"If Congress votes that the border is not secure, elements of immigration reform will cease to go forward and visa programs will be slowed," he said.
In contrast, OTA updates for applications on the secure elements (such as smart cards) are still hindered by the challenging hardware and certification requirements.
In fact, there are documented sources out there citing that we are four, five, maybe even ten years away from a realistic and entrenched infrastructure that would allow the masses to make face-to-face payments using secure elements embedded in smart cards and mobile phones.
My prediction is that, as secure elements begin to be offered in more and more mobile devices, iCache will shed their own hardware and their wallet app will be able to work directly with phone hardware, instead of with external cases.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com