2015:NFC to pay for the year of industrial chain interest disputes to be clarified

Yi Yi

October 17, IPhone6 in mainland China, ApplePay but "no-show", can not help but again to China NFC (near-field communications, nearfieldcommunication) to pay the prospect of doubt.

However, just 3 days later, the People's Bank of China released data, said the number of Chinese financial IC card issuance exceeded 1 billion, and reiterated the 2015 full application of the financial IC card target, which gave NFC pay a shot of the boost-because of the financial IC card and NFC in the processing environment with very high compatibility, The popularization of the Financial IC card brings the full updating of the POS machine, and also paves the way for the application of NFC to the mobile phone and other devices.

"At the moment, China has everything in the way of NFC payments, but because NFC payments involve consumers ' financial security, they have to be safe and therefore not fully spread out." I believe that 2015 years will become China Mobile to pay the year one. "In an exclusive interview with the first financial daily," said Steveowen, a co-founder of NFC Technology, and executive vice president of global sales and marketing for the world's semiconductor industry.

NFC has long been "stale"

"In fact, China today is one of the most widely used NFC countries." ”

Owen's claim may be questioned by many: "We have never heard of NFC, why do we say it has been widely used?" ”

In fact, the application of bus cards and financial IC cards alone has made China the largest NFC market. "In the past few years, China has applied a large number of contactless bus cards with NFC standards." In terms of payment, China is completing the card to the IC card, especially in the large city of more than 500,000 people, NFC application environment has been very perfect. "Steve introduced.

NFC applications are not just in traffic cards and bank cards. 2012, China's comprehensive replacement of electronic passports, also support the NFC standards, in addition, rice cards, access cards, etc., also have a large part of the support of NFC standards.

But China's progress seems a little behind in the most attractive area of "paying".

"As early as 2008, en NXP began to work with the People's Bank of China and the Chinese UnionPay and other units to carry out the standard discussion of mobile payment." "Steve told the first financial daily," at present, the dual authentication mechanism of chip + cipher in China is one of the safest schemes, however, due to the complex payment environment involving the integration of Internet, cloud and traditional UnionPay settlement, laws, regulations and regulations are not ready. However, the PBoC, China UnionPay and other institutions are also working in this area to ensure the safety of the payment environment. ”

No conflict with third party payments

One of the big questions about the future of NFC is that there are still opportunities for NFC payments today, as mobile payment devices such as "sweeping payments" continue to emerge, and third-party payment applications such as Alipay and micro-credit payments are growing.

"NFC is just a tool for authentication and communication, and there is no conflict with payment services provided by Third-party payment providers such as micro-trust and Alipay." "A third party pays the industry personage said," and relative ' sweep code payment ' and so on software authentication means, with the chip binding hardware authentication scheme is safer, does not appear other people to use the payment treasure purse and so on other mobile phone to login your account to steal the brush the risk. ”

In fact, Alipay Wallet has long been trying to combine with NFC. In the middle of this year, oppo with Alipay Wallet, realized the use of Oppo mobile phones, Alipay wallet, through NFC way in 35 large and medium-sized cities to take bus, Subway.

"Alipay represents a payment channel, and NFC represents a way of identifying identities, just like using two-dimensional code, barcode, voice, etc. to identify the same." said the industry personage.

However, NFC has a higher advantage in terms of functionality and security than using two-dimensional code. "On the one hand, the use of NFC chips as a trading medium, can not be copied and stolen brush; On the other hand, the current en-wise plan, the security chip can be partially customized to add new applications, to achieve in the same chip to add multiple bank cards, traffic card accounts. Of course, this also requires the government, banks and other institutions of certification, to ensure security. "Steve said that the NFC domain needs to carry on the resource integration of different industries, need to integrate the bank card, bus card, card reader and so on to create an ecological chain, which is one of the most important work of boon-wisdom."

On the other hand, Steve has specifically pointed out that on the basis of providing safety chips, the domestic electronic passports, financial IC cards and other applications, the relevant encryption library and application layer will be independently developed by Chinese counterparts and tested by national institutions to ensure their security, which also allows consumers to more confidently apply NFC payments.

Will the pattern of payment benefits be reconstructed?

Around the payment of this "real money" of the circulation channels, the major interests of the game has never stopped. Will NFC payments change this pattern?

"NFC payments, the future of the main players will also be China UnionPay and telecom operators." "The above mentioned payment industry personage expresses.

In fact, in Japan, one of the most popular markets for NFC payments, operators are one of the core forces of promotion. As early as 2004, Sony cooperated with DoCoMo with its own contactless smart card FeliCa, and in May 2006, NFC phone payments for FeliCa chips began to spread across Japan, and DoCoMo became the leader in online payments.

At home, in 2009, although China UnionPay had already launched the universal NFC standard on the international market, it still launched its self-developed 2.4GHz near-field payment standard, trying to develop the relevant applications and platforms with Pudong Development Bank. In 2011, the central bank opened the payment market, the three operators also took the opportunity to obtain Third-party payment licences, in the mobile, Chinese Unicom and China Telecom in the middle-shift e-commerce, Unicom and the sky-wing E-commerce also won the card. This means that the Chinese payment market has three forces: operators, China UnionPay and third-party payment agencies. Eventually, however, they chose to use the universal NFC standard at the same time.

In the first half of this year, China UnionPay began aggressively promoting the use of NFC as a "flash" label. POS machines with "flash pay" can also support financial IC cards, NFC-enabled handsets and other NFC standard devices for payment. April 10, China UnionPay announced that 3 million "flash" terminals had been laid and rebuilt nationwide. Used to support NFC handsets and financial IC card payments; from regulatory policy, the current domestic renminbi clearing, must take the UnionPay channel, also means that applepay into China also need to reach agreement with UnionPay. From this perspective, UnionPay will remain the dominant force in this field for some time to come.

However, through Nfc-sim, operators will also become an important part of NFC payment industry chain. Reporters on the official website of Nfcforum, Visa, MasterCard are its core members (Sponsormembers), and China Mobile, China Telecom is also listed on the organization's membership list, but the Chinese UnionPay is not among them.

NFC payments involve terminals, third-party payments, operators, etc., which are much more complex than the chain of interest paid by the credit card, but China UnionPay will remain the dominant provider. After all, the application of the sweep code payment is difficult to all the scene, and UnionPay through the POS machine compatible with the financial IC card and mobile NFC payment, is the most easy to adapt to a wide range of scenarios. "The above mentioned payment industry personage expresses.