The Munich-based technology group Giesecke & Devrient (G&D) will ensure the security of applications in Telefónica Germany’s electronic wallet, the O2 Wallet. In February the telecommunications company became the first network operator in Germany to launch a wallet service. As part of a Friendly User Test, O2 customers are able to use their NFC-enabled smartphones with the related NFC SIM card to make contactless payments in all participating shops around the world. In future, the O2 Wallet will be expanded to include further applications such as coupons and loyalty programs. For the wallet service’s pilot phase, G&D is providing the NFC SIM cards and the TSM (Trusted Service Manager) service.
With the O2 Wallet, customers can use their cell phone to make contactless payments in any shop that displays the MasterCard PayPass™ logo. G&D is providing the O2 Wallet’s Trusted Service Manager service, which forms the basis for secure payments. Users’ personal payment-card details are transferred to a specially protected area on the NFC SIM card. The Trusted Service Manager also provides additional lifecycle management services such as locking and unlocking the payment applications, for example in the event the NFC-enabled smartphone is lost.
Today, payments made with mobile devices are as secure as those made with chip-based bank cards. G&D’s certified software and hardware elements, including its Trusted Service Manager services, fulfill the highest security requirements of payment providers such as MasterCard or Visa for payment transaction applications.
Telefónica S.A. and Giesecke & Devrient reached an agreement at the end of 2011 to establish a Europe-wide platform for NFC services. This agreement also covers provision of the necessary TSM technology.