China: Giant Chinese Telco Launches RF-SIMs For World Expo

 

We're Updating our Interactive Map and Project Pages

Stay tuned for all new an all-new interactive map and exclusive content on NFC projects across the globe.

 

Countinue Reading

 

Shanghai, Beijing, other China
Scope: 
Rollout
Status: 
In progress
Launch: 
Nov 2009
Main Application: 
Ticketing (entertainment), Payment
Mobile Operator: 
China Mobile
Service Provider (application): 
China Mobile (ticketing, payment)
Service Provider (application): 
Expo 2010 organizers (venue ticketing)
Merchants: 
5,000-plus
Users: 
At least 1.1 million SIMs orders (though not all likely issued)
NFC Handsets: 
N/A
TSM*: 
N/A
Secure Element: 
SIM
Other Vendors: 
Directel (RF-SIM technology), Nationz, Jiangsu Changjiang Electronics Technology, Eastcompeace

China Mobile has developed its own contactless SIMs for payment and to enable users to buy tickets with their mobile phones and tap the phones to enter Expo 2010 venues in Shanghai to be held May through October. The ticketing application is stored in SIM cards, which the telco says can work in a variety of handsets. China Mobile also plans to support payment in McDonald's restaurants and Starbucks coffee shops, among other merchants. Reports say the telco is especially targeting merchants in the Expo park with maximum transactions of 500 yuan (US$73.23). Users will be able to reload the mobile-payment accounts on the phone, including the mobile purse, by handing over cash at China Mobile locations or by transferring money from their bank debit accounts. The telco began issuing SIMs in November in Shanghai and in expanding elsewhere, including in Beijing. The SIMs use the 2.4 GHz frequency, not 13.56 MHz, as is used in standard ISO 14443 contactless cards and NFC phones. China Mobile tested the technology in trials in Hunan and Guangdong provinces, along with Shanghai and Chongqing and is also planning to roll out in these cities. As NFC Times reported in March, China Mobile is re-evaluating its commitment to the technology

NFC Times Take: 

China’s giant mobile operator China Mobile and its majority owner, the Chinese government, want to showcase Chinese technology for Expo 2010. But the telco intends to roll out the RF-SIM in several other markets. The RF-SIMs use the 2.4-GHz frequency, not 13.56 MHz, which is standard for contactless payment and ticketing. Whether the telco is big enough to, in effect, create its own contactless standard remains to be seen, but there are signs of late that China Mobile is pulling back from its aggressive push for the technology.

 

* Trusted Service Manager: Defined loosely to include companies or other organizations securely distributing, provisioning and managing applications, generally over the air, on secure elements in NFC mobile phones; or licensing their platforms for this purpose.

N/A: Not available or not applicable.

HEADLINE NEWS

Contactless EMV Card Rollout in U.S. to Pick Up Speed in 2020, but Shape of Adoption Remains Unclear

NFC TIMES Exclusive Insight – With contactless EMV cards expected to have a significant footprint in the U.S. in 2020, the debate continues over whether the rollout will promote or harm take-up of NFC mobile payments and whether contactless open-loop transit payments will make a real impact on use of contactless at the retail point of sale.

More Open-Loop Transit Payments Services to Launch in Taiwan

Dec 24 2019

NFC TIMES Exclusive Insight – Taiwan’s airport train service will begin accepting Visa- and Mastercard-branded credit cards starting next month, making it the second mass-transit service on the island nation to support open-loop payments for fares.

In-Depth: China Moving Forward On Face Payments of Transit Fares, Despite Some Hesitation by Users of Technology

NFC TIMES Exclusive Insight –  More and more Chinese cities are trialing use of facial recognition technology for transit ticketing, a development that could enable users to avoid either cards or smartphones to pay fares on subways and other modes of transit.

Apple Launches Express Transit in London; Mobility Service also Adds NFC Payments Feature in Apple Wallet

NFC TIMES Exclusive Insight – Apple has expanded its Express Transit service to another major market, enabling Apple Pay users to pay for fares on Transport for London-run trains and buses without first authenticating themselves on the NFC devices.

Analysis: Outlook Remains Dim for Bank Mobile Wallets as Another Major Bank Plans to Shut Down its Wallet App

NFC TIMES Exclusive Insight – Major Dutch bank ABN Amro will discontinue its NFC-enabled mobile wallet in January, a little more than three years after launching the app in late 2016, with the bank acknowledging that few customers use the service.

Use of Contactless EMV to Pay Transit Fares Accelerating, According to Two Agencies That Launched Service This Year

NFC TIMES Exclusive Insight – Two transit agencies, one large and one small, that began accepting contactless bank cards and NFC wallets to pay fares in recent months are reporting that use of the new payments services is accelerating among their customers.

More Transit Authorities and Operators, Including Those in UK, to Support Google Pay

Nov 6 2019

NFC TIMES Exclusive – San Francisco Bay Area transit authority MTC has confirmed to NFC Times that it will support mobile payments with its closed-loop Clipper transit card, including with Google Pay, by the end of 2020.

NFC Wallets Make Up Growing Share of Contactless Payments on London Transit

NFC TIMES Exclusive – Use of NFC wallets continues to steadily increase as part of Transport for London’s landmark contactless payments service, with payments from NFC-enabled smartphones and smartwatches now accounting for 20% of all contactless payments, NFC Times has learned. 

Market Research Firm: Apple Pay Surpasses Starbucks App in Users in U.S.

NFC TIMES Exclusive Insight –Apple Pay, which launched its mobile payments service five years ago this week in the U.S., has so far failed to live up to expectations with the service, either in the U.S. or globally, in terms of users and transactions.

Cubic Strikes Deal with Google to Enable Closed-Loop Transit Payments in Google Pay

NFC TIMES Exclusive Insight – In a move that could enable more large transit agencies to offer NFC mobile payments with their closed-loop transit cards, U.S.-based Cubic Transportation Systems has signed an agreement with Google to integrate contactless transit cards with Google Pay. Among the agencies planning to support the service are those serving Google’s home base in Silicon Valley and the San Francisco Bay Area, as well as the Metropolitan Transportation Authority in New York. 

In-Depth: Persistent Consumer Security Fears about Mobile Payments Prove Difficult to Dislodge

NFC TIMES Exclusive Insight – Results of yet another survey has shown that a significant percentage of U.S. consumers continue to harbor security fears about using their smartphones for payments, a stubborn problem that has hindered growth of mobile payments from the beginning.

Mobile Suica Still Accounts for Disappointing Share of Suica Users and Transactions in Japan

NFC TIMES Exclusive – While Apple Pay next month will mark the 5th anniversary since its launch in the U.S., there is another contactless-mobile payments service that is three times as old as Apple Pay–Japan’s Osaifu-Keitai, or wallet phones, which this year turned 15.