DNP and Gemalto Enter into Operational Tie-Up
To commence cloud service for smart phones with added mobile payment function
Dai Nippon Printing Co., Ltd. (DNP) has entered into an operational tie-up with Gemalto, a world leader in digital security. As a result of this tie-up, in early 2016, the Company will commence a cloud service that adds mobile payment services to Near Field Communication (NFC) compatible smart phones via the internet.
In recent years, payment services that combine Finance with Technology - and have hence become known as FinTech - have been marketed by IT vendors on a global basis. In Japan, the government is advocating the penetration of cashless payments as a growth strategy. And as a measure to improve consumer convenience, financial institutions are introducing services facilitating smart phone-based credit and e-money payments. Since 2005, DNP has offered a Service Provider-Trusted Service Manager (SP-TSM) that adds payment services to NFC compatible smart phones on an outsourced-basis. From 2012, the Company has also offered the DNP Mobile Wallet Service, a platform service facilitating the integrated management of multiple services, including payment and loyalty points, on smart phones, and has supported the introduction of payment services offered by companies targeting mobile terminals. In this latest development, DNP has adopted the cloud payment solution provided by Gemalto in order to enhance these initiatives. The Company will also support companies looking to introduce next-generation payment services in a safe and simple manner, and contribute to the expansion of the cashless market.
[Outline of New Cloud Service]
The new cloud service manages card-unique data, such as credit card numbers, in a cloud format, and adds services to consumer smart phones, such as credit payment functions, prepaid payments and e-money functions in a safe manner. The Gemalto cloud payment solution has developed a firm track record around the world, and DNP has decided to adopt this system, which will be configured for Japanese companies, and provided from the DNP Data Center. This service allows not only for payment functions, but also makes it possible to add other functions, such as loyalty points services along with shopping coupons, various membership cards and ID cards. The main features are as follows:
Compatible with a variety of smart phones, including iPhone ® and AndroidTM smart phones. Progress is also being made on making the service compatible with new smart devices, such as wearable terminals seen likely to emerge in the future.
Mounting methods for the secure elements that enable smart phones to function as IC cards, differ according to telecommunications company and/or device maker. Apart from the SIM-type that is stored in the smart phone SIM card, other formats may be used, such as embedded Secure Element (eSE) to embed a dedicated chip into the smart phone, or using microSD cards. Instead of physically mounting secure elements on smart phones, Host Card Emulation (HCE), that handles classified data in the cloud, and Trusted Execution Environment (TEE), that uses the security domain of the CPU integrated into the smart phone, are examples of formats that provide similar services. And in addition to SIM-types compatible with existing DNP SP-TSM service, as a result of the operational tie-up with Gemalto, DNP is now in a position to provide solutions to all formats.
User interfaces when using the payment function include retail outlet terminal based NFC for smart phones, and formats for reading off 2D barcodes shown on a display. The new cloud service is also compatible with payment formats whereby user ID and passwords are authenticated over the internet, and is capable of providing the optimal service that matches foreseeable user cases, or infrastructure, environments.
DNP aims to make the new service compatible with all international brand-based payment services, such as VISA, MasterCard®, JCB and American Express. Companies introducing payment services can reduce development and operational costs, as well as work burdens compared to instances of developing such capabilities on an independent basis.
Tokenization is in the spotlight as a technology for boosting the safety of payment services. It works by randomly generating non-sensitive equivalents for sensitive data, such as credit card numbers used in smart card-based payments, for example, and storing only the non-sensitive equivalent as a token. DNP's newly developed service is compatible with tokenization, and manages connections between the credit card number and the token.
DNP will propose the new cloud service, along with the DNP Mobile Wallet Service, to banks, credit card companies, payment agencies, retail distributors and mail order companies, aiming for 5.0 billion yen in sales over the five years to FY 2019.
DNP will also exhibit the new service in the DNP booth at Financial Information technology 2015, to be held on October 15 and 16 at the Tokyo International Forum, and at Money 20/20 to be held from October 25 to October 28 at The Venetian, Las Vegas, NV.