The SIM Card: The Subscriber Identity Module (SIM) holds the chip that contains the MNO’s confidential customer information used to identify the customer to the network. To enable mobile payments, SIM cards must have secure element space that can be made available to third parties where secure credit and debit card credentials can be stored.


The TSM: The Trusted Service Manager (TSM) is the technology platform that links banks and mobile network systems. There are two sides to the TSM. On the bank side is the Service Provider TSM, or SP TSM. On the MNO side is the Secure Element Manager, or SEM (also called the Root TSM). Sometimes the same entity provides both the SEM and SP TSM technology; sometimes the two are provided by separate entities.

The smartphone: Virtually all new smartphones coming to market today have both an NFC antenna and can use NFC-payment-capable SIM Cards. ‘ApplePay’ announced by Apple in September, 2014 also uses NFC technology but has a hardware based secure element on iPhones, to safely store personal card information for transactions.

The wallet: This is the application or user interface on the screen of the user’s smartphone. Current in-use versions in Canada are simple, single-bank-specific payment applications. While some are ‘stand alone’ apps, others are integrated as part of a financial institution’s mobile banking service. More advanced wallets, such as ‘UGO’ and ‘SureTap,’ will not be limited to one bank, but rather, will allow customer flexibility to pick and choose from the multiple cards” in their wallet, including loyalty “cards”, gift “cards”, downloaded “coupons” and marketing offers, and, in future, identity cards, such as government-issued licences and health cards.



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