Google bypasses the Secure Element to circumvent carrier restrictions on mobile wallet

With contactless and NFC based security fears, Google isn't helping here. I also wonder if this will have an impact on the way carriers sell devices? Will they want to push Android 4.4 devices in light of this? Or, as I suspect, they will start to focus sales efforts on iPhones and Windows Phone devices more...Will we see less Android devices on the shelves?? Maybe, so this could be a massive risk to Google, and an odd one since their wallet as of late seems to be backing away from NFC...

I seriously doubt it they will get EMV certification for emulated SE...

PCI?

Apparently, Visa and MasterCard are part of that HCE move: http://tomnoyes.wordpress.com/2013/11/01/hce-kills-isis/#comment-3613 Why do they allow a single company to interpret "secure" in its own way and operate outside the scope of global EMV specs?!. What does EMV stand for now if we don't need its cornerstone, i.e. "chip"?..

This seems not to be yet another service, but a serious attempt bypassing SME’s to get access to consumers smartphones for payments. Especially when it can proof EMVCO payments emulated by HCE. Security is a main topic, but not the blocking one. Adoption through 1. ease of use, 2. daily relevance, 3. added value services and 4. Low transactional costs are key elements for success. Let’s see when the first launching customer and set of consumers start using it for ‘Tap & Pay’ payments. And, once HCE is adopted for payments, consumers will star using this for related services like loyalty and check-in/out.

Sounds like another naïve Google's initiative ...

This is how current Google Cloud looks like:

http://www.washingtonpost.com/rf/image_404h/2010-2019/WashingtonPost/2013/10/30/Local/Images/GOOGLE-CLOUD-EXPLOITATION1383148810.jpg

Unfortunately there are vested interests on both sides of this story but simple "it's not secure!" or "Visa MC will never allow it!" comments are somewhat misinformed and don't assist in a healthy debate.

I'd also encourage readers to review Tom's blog at:

http://tomnoyes.wordpress.com/2013/11/01/hce-kills-isis/#comment-3613

I think he reads the situation perfectly and there's also a healthy and reasoned debate in the comments that follow.

It's a good article. But at no point does any of these NFC enhancements address the core issues businesses/people have with the technology

1. No added value to a merchant at all

2. No incentive for a merchant to adopt NFC / mobile

3. Security IS an issue and will become increasingly so if NFC gains any real traction

4. Risk increases to merchants

5. Up-front investment required for a merchant

6. Consumer experience is no more improved compared to standard contactless experience today

7. Does not address multiple sales channels

8. Integration with other business service providers. Just isnt possible

This is simply a way for Google and card schemes to try and cut carriers out of the mobile space, and they are doing it by redefining their own rules. I hope Apple doesnt follow suite and look to do this, rather they continue to move forward and look further into the future than NFC. For me, NFC is fast becoming the Mini-disc of the payments world...