What is Host card emulation?

Host card emulation is the software architecture that provides exact virtual representation of various electronic identity cards using only software. Prior to the HCE architecture, near field communication transactions were mainly carried out using secure elements.

HCE enables mobile applications running on supported operating systems to offer payment card and access card solutions independently of third parties while leveraging cryptographic processes traditionally used by hardware-based secure elements without the need for a physical secure element. This technology enables the merchants to offer payment cards solutions more easily through mobile closed-loop contactless payment solutions, offers real-time distribution of payment cards and allows for an easy deployment scenario that does not require changes to the software inside payment terminals.