BBVA Bancomer Conducts the First Ever HCE Transaction in Mexico

By: Carlos Lima, President of Latin America and the Caribbean, Verifone

In 2002—long before the U.S. began its migration to EMV—BBVA Bancomer processed the first EMV transaction in Mexico, which was conducted at La Casa del Fumador in Mexico City using one of Verifone’s portable terminal solutions. Just recently—on September 22, 2015—BBVA Bancomer made history once again by using one of Verifone’s solutions to process the first ever Host Card Emulation (HCE) mobile payment transaction in Mexico.

Innovative, forward-thinking financial institution

BBVA Bancomer, the largest financial institution in Mexico, is known for leveraging the newest and most innovative technology to provide remarkable customer service. Its extensive infrastructure incorporates 1,822 branches, 9,713 ATMs and an estate of more than 200,000 payment terminals—of which more than half are from Verifone. The first HCE transaction in Mexico was conducted at Punta del Cielo Café—a coffee shop and BBVA Bancomer client— using the VX 520—one of Verifone’s portable countertop payment solutions. More than 100,000 of these contactless-enabled devices are used by BBVA Bancomer clients throughout Mexico.

Verifone is proud to be a trusted partner of BBVA Bancomer—a widely recognized innovator in Latin America—and we welcome the opportunity to support the bank’s efforts to provide consumers in Mexico with the benefits of NFC mobile transactions. BBVA Bancomer and Verifone have benefited from collaborative efforts in payments for over 22 years, and we are proud to have played a role in this historical event and congratulate BBVA Bancomer for yet another innovation milestone.

Supports NFC payments, loyalty programs and more

HCE allows a smartphone to perform transactions by “emulating” a contactless smart card with security credentials securely stored either on the cloud or on the smart device’s host processor, not the device itself. With integrated NFC capabilities, Verifone’s solutions support alternative payments as well a host of other value-added applications, including Vida Bancomer—a pay-with-points program available to BBVA Bancomer cardholders and supported by thousands of participating merchants throughout Mexico. Additionally, these solutions enable loyalty programs and other NFC services—including building access and transit passes—to be delivered without the need for an in-device Secure Element such as an embedded security chip SIM or microSD card.

“The first HCE payment transaction in Mexico illustrates the leadership role of BBVA Bancomer in bringing new payment and commerce-related services to cardholders and merchants,” said Francisco Zago, Director at BBVA Bancomer. “We have the infrastructure necessary to bring widespread acceptance and use of HCE to this market, and our relationship with Verifone is instrumental in expanding mobile payment transactions in the region.”

This latest industry first from BBVA Bancomer comes at an important time, considering smart phone adoption is increasing dramatically in Latin America and will be the most critical factor in providing payment and commerce services to the region’s large currently unbanked population.

Carlos Lima is President of Latin America and the Caribbean for Verifone and is responsible for delivering new and innovative products and services throughout the LAC region. Prior to joining Verifone, Carlos held senior leadership roles in Latin America, Europe and the U.S. across retail, corporate banking, technology, and information systems with Barclays, American Express and Citigroup. Most recently, he served as Chief Operating Officer with Vantiv, the second largest merchant acquirer in the U.S.