NFC-Enabled Payments and the Role of the Trusted Service Manager
NFC-enabled commerce has been slow to take off, but is poised for mass adoption now that NFC devices are widely available worldwide, merchants can accept NFC transactions, and mobile wallets and other important applications are readily available. Mobile network operators (MNOs) and service providers like card issuers cannot afford not to participate in the NFC-enabled payments space. The convenience of mobile wallets will likely help determine which devices and carrier services people use, as well as which payment cards they choose to use.
For MNOs and card issuers alike, significant revenue could be at stake as NFC-enabled payments become mainstream. Getting account credentials securely onto a mobile device is a complicated process, and it is not an activity for novice companies with little experience in account provisioning. A Trusted Service Manager (TSM) is a new business entity with the necessary technical expertise, business relationships and experience to get accounts and applications onto the device on behalf of service providers and MNOs.