Japan’s international payment brand JCB Corporation (JCB) Launched JCB Digital Currency (JCBDC) Phase 2 Pilot Project with France-based identity technology company IDEMIAa fintech company based in Malaysia Soft Space SDN BHD.
The trio said in a recent statement that in Phase 1 of the JCBDC project, JCB, IDEMIA and Soft Space will develop a central bank digital currency (CBDC) payment solution that will allow merchants to accept CBDC without changing their point of sale. (POS) terminal and payment card.
The solution was successfully piloted in Tokyo in 2023, allowing JCB, IDEMIA and Soft Space to move on to the next phase of the project.
Phase 2 of the JCBCD project will allow customers to transfer CBDC funds from one person to another using a card or mobile phone, even without an internet connection.
These offline P2P (peer-to-peer) funds transfers can be from one card to another through a mobile NFC device as an intermediary, or directly from one mobile near-field communication (NFC) device to another. Masu.
This project complies with open White Label Alliance (WLA) payment standards and uses secure elements to ensure optimal security.
One option allows consumers to send CBDC funds offline by tapping one person’s card to another person’s mobile NFC device.
Another person can then tap their card onto their mobile NFC phone to receive CBDC funds.
Such stored value cards (SVCs) are used to securely store and transfer offline CBDC funds, acting as a digital version of cash instead of paper currency.
Another option for consumers is to tap their mobile NFC device to another person’s mobile NFC device to transfer CBDC funds offline.
When sending and receiving CBDC funds, both payer and payee’s mobile NFC devices operate outside the network.
In this project, IDEMIA and Soft Space will provide a tokenization backend server, mobile wallet application, card application, SoftPOS solution, as well as all necessary application programming interfaces (APIs) and software for system and application integration. We have provided a development kit (SDK). .
The project uses IDEMIA’s protocol, the industry standard for offline CBDC payments, and leverages Soft Space’s expertise in contactless payments.
This JCBDC project aims to enable anyone to safely and conveniently transfer CBDC funds at any time, with or without an internet connection, with instant availability of funds guaranteed.
JCB, IDEMIA and Soft Space will implement the second phase of the project, with a pilot planned for early 2024.
“Continuing from Phase 1, we are very proud to announce our collaboration with IDEMIA and Soft Space on this Phase 2 project.
“This project proves that offline P2P funds transfer can be used in a new CBDC payment system, which is of great benefit to a wide range of consumers.” Masu.
Meanwhile, IDEMIA’s Managing Director of Payment Services for Asia Pacific (APAC), Roman Zanoro, said the project highlights IDEMIA’s expertise and innovation capabilities in CBDC.
“We believe that allowing the public to transfer funds offline using contactless cards or mobile phones will give them great flexibility of choice.
He added: “With this new phase, we will build on the expertise gained from our previous successes with central banks around the world.”
Soft Space CEO Joel Tay said the project would leverage existing technologies already used by JCB, such as contactless Europay, Mastercard and Visa (EMV) technology and Tap. He said the company is pleased that the first phase was successful. Mobile SoftPOS.
“Phase 2 will also evaluate Host Card Emulation (HCE) and various other offline scenarios being developed with JCB to further develop real-world use cases and ensure the commercialization of the CBDC solution we ultimately implement. “We aim to become a ‘society’,” he added.
JCB is a leading global payment brand and a leading Japanese credit card issuer and credit card acquirer.
The company started its card business in Japan in 1961 and began expanding globally in 1981.
Its acceptance network includes approximately 43 million merchants worldwide.
JCB Cards are primarily issued in Asian countries and regions, and have over 154 million cardholders.
As a leader in ID technology, IDEMIA’s mission is to unlock the world and make it more secure, backed by cutting-edge research and development (R&D) and years of expertise in biometrics and encryption.
With approximately 15,000 employees, IDEMIA is used by more than 600 government agencies and 2,300 companies in more than 180 countries.
Founded in 2012, Soft Space is a fintech company serving more than 80 financial institutions and partners across 30 markets worldwide.
The company offers a wide range of solutions to both retailers and consumers, including contactless payments via mobile devices and comprehensive white-label e-wallet services.
Soft Space, Hong Leong Bank and JCB expand acceptance of JCB cards in Malaysia
