This question is very similar to the story above on EMV. The engineer in me recoils at the thought that a sophisticated technology (which decreases risk), would not be welcomed within a market. To understand WHY, you must answer the question: WHO benefits from the risk reduction? If your business is risk management, and someone takes risk away, what is your business?
Visa and MA have both created HCE Apps which will REPLACE the SE based CARD EMULATION apps. This is a FANTASTIC development for BUSINESS and for Android. Now you can create apps that leverage payment, loyalty, … It is also a fantastic development for CUSTOMERS as you will be in control of the TSM and card provisioning. You will be able to load ANY CARD you want.. not just the Chase and Amex cards that are in ISIS.