A method of processing a remote transaction initiated by a mobile device, the method comprising: receiving, by a server computer, a payment request including encrypted payment information, the encrypted payment information being generated by a mobile payment application of the mobile device after the mobile payment application receives payee information from a merchant application of the mobile device, retrieves payment information from a secure element and encrypts the payment information using a remote key manager key to form the encrypted payment information; decrypting, by the server computer, the encrypted payment information using the remote key manager key; determining, by the server computer, a merchant application public key associated with the payment information, wherein the payment request message further comprises a merchant application certificate, and determining the merchant application public key comprises: validating that the merchant application certificate is authentic; verifying the merchant application certificate is currently valid with a certificate authority; and extracting the merchant application public key from the merchant application certificate; re-encrypting, by the server computer, the payment information using the merchant application public key; and sending, by the server computer, a payment response including the re-encrypted payment information to the merchant application, wherein the merchant application decrypts the re-encrypted payment information using a merchant application private key and initiates a payment transaction using the decrypted payment information. receiving, by a server computer, a payment request including encrypted payment information, the encrypted payment information being generated by a mobile payment application of the mobile device after the mobile payment application receives payee information from a merchant application of the mobile device, retrieves payment information from a secure element and encrypts the payment information using a remote key manager key to form the encrypted payment information; decrypting, by the server computer, the encrypted payment information using the remote key manager key; determining, by the server computer, a merchant application public key associated with the payment information, wherein the payment request message further comprises a merchant application certificate, and determining the merchant application public key comprises: validating that the merchant application certificate is authentic; verifying the merchant application certificate is currently valid with a certificate authority; and extracting the merchant application public key from the merchant application certificate; validating that the merchant application certificate is authentic; verifying the merchant application certificate is currently valid with a certificate authority; and extracting the merchant application public key from the merchant application certificate; re-encrypting, by the server computer, the payment information using the merchant application public key; and sending, by the server computer, a payment response including the re-encrypted payment information to the merchant application, wherein the merchant application decrypts the re-encrypted payment information using a merchant application private key and initiates a payment transaction using the decrypted payment information.