We can list the differences between the NFC Secure Element and HCE payment methods as follows.
| NFC Secure Element | HCE |
| Requires a mobile operator (Turkcell, Vodafone, etc.). | No mobile operator is required. |
| Card data is stored in the secure element. | Card data is stored in the cloud. |
| Use of a SIM card is mandatory. | No SIM card is required. |
| An NFC-enabled phone is sufficient. | Android 4.4 or higher is required. |
| Transaction time is similar to HCE. | Transaction time is similar to the Secure Element method. |
| Security is high because card data is stored on a hardware-based secure chip. | Security is provided through tokenization, single-use keys, and server-side controls. |
A visual comparison of the traditional NFC Secure Element architecture and the HCE architecture is shown below:
Current status
Since this article was first published, mobile payment technologies have changed significantly. Today, secure-element-based payments are mostly carried out through the phone's own embedded secure element rather than a SIM card. This method removes the dependency on a mobile operator. HCE, on the other hand, is widely used especially in contactless payments offered through banks' own mobile apps.
Security approaches
The two methods provide security through different means. In the secure element method, card data is stored on a separate hardware chip that is protected against physical attacks. In the HCE method, card data is not permanently stored on the phone. Instead, security is provided through tokenization, single-use keys, and server-side controls. This way, even if the phone is compromised, the data that could be used remains limited.
Which one should be chosen?
The choice depends on the needs of the institution offering the service. The secure element method requires dependency on the device manufacturer's or operator's infrastructure. HCE, on the other hand, allows a bank to offer the service through its own app, independent of the device manufacturer. For this reason, HCE has made it easier for banks to roll out mobile payment services more quickly.
