Enables Consumers to Make Contactless Payments from their NFC-enabled Phones; Pilots Underway with Banco Sabadell and Capital One

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PURCHASE, NY – February 19, 2014 MasterCard today announced it will publish a specification that leverages Host Card Emulation (HCE) for secure near field communication (NFC) payment transactions. The approach will enable consumers to easily use their MasterCard-branded cards on their NFC-enabled phones to make contactless payments. Today, there are two million contactless-enabled merchant locations in 63 countries around the world.

An open architecture, HCE enables payments and other NFC services – including loyalty programs, building access and transit passes – to be delivered without the use of a secure element (SE). The specification, developed over the past year with Capital One and Banco Sabadell, marks a significant industry milestone that, in addition to MasterCard’s longstanding support for embedded and SIM-based SE implementations, will drive greatly expanded availability of mobile contactless payments for consumers.

“Consumers are now shopping and paying in whatever way best fits their needs and lifestyles – and from every device they own. To meet their expectations for convenience, we need to accelerate the availability of services in the market. The use of HCE provides a very attractive way forward to launch an increased number of NFC-based offerings,” said James Anderson, Group Head, Emerging Payments at MasterCard. “We continue to set standards and deliver solutions to our partners and customers that deliver great experiences for safe and secure digital payments.”

As a critical part of the specification development process, MasterCard worked with Capital One on the initial pilot and with Banco Sabadell on a European pilot. The pilots have helped inform MasterCard’s direction, and the learnings will pave the way for additional deployments planned in 2014 with other financial institutions around the world.

“For Capital One, the pilot was about exploring new ways to commercially deploy an NFC-based offering and securely store credentials. We’ve enjoyed a longstanding partnership with MasterCard, and we continue to work together to deliver innovative solutions for our bank customers,” said Jack Forestell, Executive Vice President, Digital, Capital One.

“We were extremely pleased with the ease and speed in which pilot participants were able to add their payment cards to their NFC-enabled phones,” said Albert Figueras, Credit Cards and Consumer Finance Manager of Banco Sabadell. “As one of the most innovative banks in Europe today, it’s important that we continue to meet the needs of our consumers in our rapidly evolving digital society.”

The use of NFC technology within smartphones facilitates secure, easy contactless payments. Contactless payments are faster than using cash or waiting for change. Since 2012, MasterCard has seen a 180 percent increase in the number of merchants – from major retailers and quick service merchants to convenience stores, gas stations, grocery stores, pharmacies, vending machines, parking lots, mass transit and taxis – that are now contactless-enabled.

HCE is supported in the Android OS KitKat 4.4, which began shipping in November 2013 and continues to roll out on popular smart devices.  MasterCard’s approach combines custom software on the mobile device with highly secure cloud-based processing. This greatly simplifies and speeds the deployment process of NFC-based mobile offerings to consumers by card-issuing financial institutions. MasterCard plans to publish its secure remote payment specifications during the first half of 2014.

About MasterCard

MasterCard (NYSE: MA), www.mastercard.com, is a technology company in the global payments industry. We operate the world’s fastest payments processing network, connecting consumers, financial institutions, merchants, governments and businesses in more than 210 countries and territories. MasterCard’s products and solutions make everyday commerce activities – such as shopping, traveling, running a business and managing finances – easier, more secure and more efficient for everyone. Follow us on Twitter @MasterCardNews, join the discussion on the Cashless Pioneers Blog and subscribe for the latest news on the Engagement Bureau.

About Banco Sabadell

Banco Sabadell is Spain’s fourth largest private banking group and is comprised of different banks, brands, subsidiaries and part-owned companies, covering all areas of the financial business sector under the common denominator of professional performance and quality. With more than 6.5 million customers, Banco Sabadell occupies an outstanding position in SME’s and the affluent clients’ segment. Banco Sabadell currently operates in 18 countries and employs over 17,000 people. With total assets exceeding 170 billion Euros, Banco Sabadell is listed in the IBEX 35.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N. A., had $206.9 billion in deposits and $289.9 billion in total assets as of September 30, 2013. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has more than 900 branch locations primarily in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol “COF” and is included in the S&P 100 index.

Media Contact

Brian Gendron

MasterCard Worldwide


Gabriel Martínez

Banco Sabadell

+34 902 030 255, ext. 39856


Chris O’Neill

Capital One



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