Visa has helped to launch a new mPayment platform for banks. Called MatrixHCE, it was developed by INSIDE Secure, an embedded security solutions provider.
This particular solution enables banks to adopt mobile payments while ensuring that users’ devices are protected by tokenized transactions and biometric authentication, as well as additional safeguards like receipt and transaction logging. Announcing the platform in a statement, INSIDE Security Mobile Security Division EVP Andrew McLennan called it “one of the first mobile payment solutions for banks,” and highlighted its sophisticated technology, including “updatable whitebox cryptography to protect tokens, code and data.”
The solution arrives at a time when major financial institutions are grappling with the emergence of mPayment platforms like Apple Pay and Samsung Pay, which disrupt their business models in part by cutting into their fees. Some major banks, such as Barclays, have resisted supporting these platforms, choosing to focus efforts on developing their own, in-house mPayment options; but many others have instead adopted an ‘if you can’t beat them, join them’ attitude. MatrixHCE likely won’t be the last third-party mPayment platform offered to the financial services sector, and at the very least it should help to drive competition in the growing digital banking and payments market.