Research in Motion (RIM), the manufacturers of Blackberry phones have received approval from credit card company Visa for its security management system that can be used in mobile payments with smartphones or tablets using a Near Field Communication chip.
The system, known as Secure Element Manager (SEM), provides software and server infrastructure in the cloud that is managed completely by RIM. SEM works with the secure element installed in SIM cards or the embedded secure element installed in NFC-ready mobile devices.It allows users to make mobile payments through banks that work with credit card companies, in this case Visa.
According to RIM spokesperson, SEM meets the "stringent technology and usability guidelines for Visa" that includes encryption of mobile payment data, both on devices and over the air to banks, the downloading of applets with a customer's credentials, management of PINs and other authentication data used to activate a mobile payment.
The SEM works with encryption technology to manage credentials with a secure user PIN to seek payment authorization from a phone to a bank account on a remote server. For instance, if a person purchases a soft drink from an NFC equipped vending machine, by passing an Isis and NFC smartphone near the machine, the amount will be paid by their credit card.
RIM makes BlackBerry 7 smartphone models with NFC chips and SIM cards and the BlackBerry 10 smartphones, due to be launched this month end, also have NFC chips and SIM cards.
The NFC technology is currently used in the US where SIM cards are designed specially for NFC payments. India is yet to taste this technology, and we can only wait and watch.
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