NFC Times Exclusive Insight – Gemalto CEO Olivier Piou said revenue from the vendor’s trusted service management business fell in the first quarter and would stay down for the rest of the year, while indicating Gemalto is no longer seeing many TSM tenders from telcos.

He predicted revenue would ramp up next year but would come primarily from financial institutions, and many of the projects would involve such new technologies as tokenization, host-card emulation and trusted execution environments. 

The fall in business this year for Gemalto, which is the largest TSM globally, shows demand is dropping for conventional TSM services that put NFC payment applications on secure elements with real card numbers. Demand is shifting to tokenized cards, either stored on secure elements, as Apple does with Apple Pay, or in apps as part of a host-card emulation implementation. The tokens might also be stored in a trusted execution environment, or TEE, which is what Samsung plans to do in the U.S. with Samsung Pay.