The online payment industry was exposed to a slew of attacks in 2013-14, with hackers meticulously examining the payment infrastructure to exploit potential weaknesses. To guard against such security breaches, the payment industry needs to devise global security initiatives and establish common rules.
According to Frost & Sullivan, host card emulation (HCE) has created a new layer of security services. On the other hand, the HCE solutions have raised several concerns as in the absence of a single network, a single protocol and a common set of rules, hackers can breach security layers using sophisticated tools.
Until the recent spate of attacks, banks and financial institutions had been reluctant to invest heavily in protecting their digital transactions. However, new awareness of the huge liabilities and losses that can be incurred through these data leaks is encouraging their support for the use of HCE security technology.