A Modular Approach to Cloud-Based Payments

In Host Card Emulation, Insights, Mobile Solutions, Tokenization by Neil Livingston

When we set out to develop our cloud-based payments solutions for the market, we asked ourselves if one size would fit all? We didn’t think so, and our customers agreed.

by Neil Livingston
Director of Mobile Products

To establish a cloud-based mobile payments service using host card emulation (HCE) and tokenization, Issuers will need three things:

1. Something that can administer end-user handsets (to register users, add/delete cards, suspend/resume cards, check device eligibility, etc.)

2. Something that can remotely provision and manage credentials on an end-user’s mobile phone

3. Something that can create and process tokenized card credentials to be used in place of funding card details

Some Issuers will have the appetite to bring all of these capabilities in-house. Others might prefer to outsource some or all of these capabilities to a trusted service provider.

In practice, the approach you take will depend on the capability and flexibility of your existing systems, the ease with which those legacy systems can be adapted, and their ability to schedule IT system changes. It may suit one Issuer to implement the tokenization and token transaction processing capability in-house, while outsourcing mobile credentials provisioning and remote management to a third party. But that model might not suit another Issuer.

For a company like Carta, our cloud-based payments solution implements a modular component architecture—so you can pick and choose the components you need for your mobile payments service. What’s more, you decide whether to deploy some or all of your solution in-house, in existing data centres, or outsource to Carta as a hosted/managed service.

Modular technology can be brought together in full, or in part, with your other systems, to form a complete mobile payments and tokenization service that’s right for you. And our modular solution design means our components can be deployed independently of each other, and as component parts of other service architectures, easily integrated via APIs. This flexibility means Issuers can decide which components are best for them, and how best to deploy them.

When you choose a technology partner to support your mobile payments initiatives, make sure you pick one who will reduce the complexity, not increase it, who will tailor a solution that works for you, not against you, and who can give you just the services you need without the baggage.