The idea of the Trusted Service Manager closely parallels the way GSM SIMs are managed. High grade hardware based security was standardised for the GSM network from the outset because it was seen that criminal attacks on the telephone system were inevitable. SIMs hold keys just as Dave describes EMV chips holding keys, and those keys and other codes can only get on to the SIMs over-the-air via stringent personalisation services. Now, the potential rewards from attacking the mobile payments system are vastly greater … and yet here we are, countenancing a security-convenience tradeoff because we’re annoyed by the telcos’ TSM behaviour. The idea of using software based key rollover techniques in a handset is especially worrying given the state of application security today. Time and time again, mobile banking and payments apps are shown to be extraordinarily shoddy, thanks largely to the unseemly rush to market. Security and quality are sacrificed for product cycle time and convenience. I would have little confidence in any application level key tricks.

If mobile really is the major platform of the future — and not just for payments but for digital identity too — then we must treat it seriously, and leverage the mission critical security infrastructure that is already in place. Secure Elements and TSMs are terrific infrastructure, fit for the very serious purpose of securing mobile transactions. At some level, it’s proper that SEs cannot be modified too easily; after all, the ease of access by application software to executive functions in the PC platform is what enables most cyber crime today. Telcos are rather too avaricious in their TSM policies and business models but I don’t think renting SIM space is inherently evil. In fact I think if banks thought to rent out space and cryptographic functions in their EMV chips then we could see more innovation in e-commerce, e-government and eID.

So let’s not abandon SEs and TSM, but instead work out more equitable ways of sharing the security infrastructure so vital to the long term success of the mobile platform.

My experience of US culture is that EMV via NFC in the retail environment would go down like a Led Zeppelin. Great for the customers getting out of the door quicker but zeroing the up-sell opportunity/time, or effectively removing it? It totally removes KYC in a small retail environment and leaves everything to Loyalty system profiling. What an awful dehumanising world?

Am I missing something here please? Cheers Mark

The company (Seglan) that helped them to develop the solution claims it is “EMV compatible”. Is that like “almost pregnant”? How can someone do a contactless EMV “cardholder present” transaction without… EMV (i.e. chip, i.e. SE)?

Am I am missing something big here?..

Can you comment?

[Dave Birch] Yes