NFC Times Exclusive – The planned launch of NFC transit ticketing in Japan next month with Apple Pay shined the spotlight on the emergence of closed-loop NFC transit ticketing–which has been seen as a prime application for NFC phones but one that has disappointed NFC backers for years.
With the growth of “OEM Pay” services by smartphone makers, however, transit fare collection is getting a new look, especially in China, where services have already launched and more are planned. (See table below).
Chinese smartphone makers are seeking to stay competitive with Apple and Samsung, which both introduced mobile payments services in China earlier this year. They also want to make their wallets more attractive, by offering a service that Internet and messaging giants Alibaba-affiliated Ant Financial and Tencent Holdings can’t with their respective Alipay and WeChat wallets–both of which use QR codes for payments in physical stores.