CUA will launch an updated smartphone contactless payment application today, using Cuscal's redi2PAY technology.CUA is the first financial institution to deploy redi2PAY, which is distinctive for using host card emulation. HCE is a system that allows the emulation of the consumer's payment card credentials to be based in the cloud and accessed by software.The big banks, by contrast, are using 'phone-based secure element' solutions,  requiring the financial institution to work with handset manufacturers or telecommunications companies to embed the customer's account details in the phone.Cuscal general manager of products and services, Adrian Lovney, said the HCE approach had some advantages. Unlike the secure element solution, which requires the co-operation of third parties, HCE does not require any additional processes by third parties.In theory, this means the system can be updated more easily. From a consumer point of view, the transaction at the point of sale proceeds in the same way.CUA customers using Android smartphones (running KitKat 4.4 or later) will be able to download the redi2PAY app from the Google Play Store and make payments at contactless terminals using their phones.CUA chief executive Chris Whitehead said in a statement: "This technology requires no other tag or sticker to be attached to the mobile phone. You simply download the app and off you go. We are providing this at no cost."Redi2PAY will only support Visa debit cards issued by Cuscal. Lovney said this may change in future.He said Cuscal was in discussions with eight other financial institutions looking to offer the redi2Pay app to their customers.