Host Card Emulation is software emulation of an NFC smart card's responses, usually by (but not limited to) a mobile device.
Host Card Emulation (also known as soft-SE or software card emulation) is the emulation of a virtual smart card (that is not backed by an actual smart card chip) using only software. This allows information transfer to happen between a terminal configured to exchange nfc radio information with an NFC card (e.g. contactless smartcard, NFC tag) and an application configured to act or pretend to emulate the functional responses of an NFC card. HCE requires that the NFC protocol be routed to the main operating system on a (mobile) device's application processor instead of routing to a local hardware-based Secure Element (SE) chip configured to respond only as a card, with no other functionality.
The first known system to support HCE was blackberry OS 7. Since then, android KitKat added platform support.