And see how the big three dominate the NFC model.

In today's society, NFC payment mode, hardware model is definitely the trend has been set, and the core operation of the battle is destined to rise again.

Those who really have the experience of paying business must understand that the main battleground in the payment business is not the payment itself, but whether it is profitable to pay for the complete business scenario, such as the suitability of industry positioning and customer audiences, the business model and the income model to be sustainable, Hardware and software and regulatory conditions are mature and so on. In this, NFC near-field payment is a typical case, although its business is far from the scale of development, but since the date of the birth of NFC has been the attention of all parties, or praise, or derogatory. The reason is that its expected business scenario is large and subversive, and its implementation is heavily constrained by hardware technology.

I was fortunate enough to be involved in a number of key periods in the country at NFC, and it has played a role in it. The reason for writing this article is because I personally feel that this business has actually reached a historical breakthrough point, is about to enter the "Vista" moment (rather than all kinds of giants and the media every year, the so-called "" "Oh)." Therefore, I would like to from the "Hardware + operations" perspective, and then review the various stages of history, and properly forecast the next development, I hope to be able to help the industry's colleagues. In my own, it is to continue the interest, from the business operator's point of view to record the real industry observation and sentiment.

The first phase of NFC payments to the SIM full card for the hardware base, hardware, operating all in the operator

A year ago, I was in my own hands to create a carrier group to pay the company to leave, the heart has been enlightened, operator-led mobile near the era of payment has passed.

The reason is simply that when the operator abandons the business model based on the SIM card, it essentially abandons the user. In the harmonious NFC-SWP model, the operator seems to obtain the understanding of financial institutions, but in fact, the user actively shut out, but also to the user's trading scene and the transaction process is ignorant. How can the operator and mobile payment have anything to do with the high viscosity of the users in the net?

Aside from the fact that all kinds of forces are not given, the operator is the most powerful and core leader in the near-field NFC payment, and the root cause is the user. Specifically, there are three points:

1, only operators have a high viscosity of the mass mobile phone users, in addition to you can not find every month will take the initiative with the operating agencies at least one contact with the user (payment). Plus, every 18 months in the country to change a smartphone boom, as well as the overwhelming SMS and telemarketing, only operators have the possibility of large-scale promotion of NFC mobile phone payment;

2, only operators have the most healthy business start mode, that is, put the hardware costs, in exchange for high package low net rate of mobile phone users, so that sufficient funds to the scale of other links to the industrial chain blood transfusion, through the most difficult period of industrial germination;

3, only near-field payment users (such as NFC) is the operator "really can rely on" loyal users, do long-distance payment regardless of whether or not the competition has been paid treasure, the key is that the user's migration cost is very low, can not give the operator the main business to bring direct help.

Therefore, when we design operators mobile near-field payment business, resolutely to sim full card based. The so-called SIM full card, is the user only need to replace the SIM card, no other modifications. Specific options include the initial 2.4G, medium-term sim-pass, and the late-flash full antenna SIM card. Among them, only China Telecom on the cumulative distribution of all types of SIM card nearly 15 million. This is the first phase of domestic mobile near-field payments.

For a variety of reasons, 2.4G failed, sim-pass and full antenna SIM card is still in operation, but gradually unable to adapt to Apple's IPHONE4/5 and other small card technical challenges, but also fatal, operators in the central bank, UnionPay game process gradually lost, Announced that the NFC-SWP mode for the future direction, in the market expectations and resource input will no longer tilt to the SIM whole card scheme. The giant's turn, has directly caused the technical research and development type card merchant/chip Merchant's significant loss, cannot but say is a kind of regret. Today, the card business has basically no ability to innovate a better SIM full card products.

The second phase of NFC payment, with NFC-SWP technology as hardware base, operator relative control hardware, UnionPay bank relative control operation

What is the so-called international mainstream NFC-SWP model? The technical problem is not discussed here, let's look at the user flow:

1, first of all, users need to replace an NFC mobile phone, but please note that not mobile phone manufacturers claim to have NFC on the line oh, must be the operator recognized by the custom model. Otherwise, even if you buy according to the model, it probably doesn't work.

2, second, the user needs to go to the business Hall to replace a NFC-SWP SIM card, also don't say, this card looks like the normal SIM card difference is little, than the previous sim-pass much better;

3, then, users need to download carrier-specific "mobile wallet" client, different operators have different client name, but the same, open, register, use;

4, and then, users need to follow the instructions of the salesperson, the client immediately apply for a card. Note Oh, it must be the bank card that you already have, and in 1 minutes you will visually see this electronic bank card within the client. If you have to apply for a new bank card, also line, the client provides the user to submit the application information function, you wait for it;

5, OK, seemingly all finished, how to use it? Wait, what is this "electronic cash" that suddenly appears? What is it? You just listen to the salesperson sweating profusely to explain it to you. In short, the bank card that you are applying for is not the bank card that you are familiar with, it is an accessory wallet, and you can only use this accessory purse to do the so-called mobile phone consumption. (User: Can I swear?). Moreover, this accessory purse is not the report of the loss of OH (rely on, then I fill out so much information why?), that is to say, the phone lost, the balance in the wallet is lost, can not find back. Where does the money from the accessory purse come from, and only from that particular main bank card deposit come over, the maximum limit of 1000 yuan;

6, OK, I recognize. Tell me, where can I use this? Please go to support UnionPay ' QuickPass Flash ' merchant pos card, now the country has been transformed 3 million units, the major cities have been supported. "That's good, more reliable than the operator. Wait, for the fur merchant's cashier to look at me with a psychotic eye? I am not a liar, you will not use Ah, not also don't ask me ah ...

7, forget, the cashier can not afford, I still can't flirt with customer service mm? It is said that business is not good, experience the feeling of God. "I have done your mobile phone payment business, not good!" Sorry, please contact the card issuing bank to advise it how to use the business, we only provide the SIM card communication Service "," Sorry, please contact the operator first, to ask them how to use the business, we only provide account services "...

8, finally, congratulations, one more do not lose the mobile phone, also do not change the phone at will, because the accessory wallet is not able to remotely shut down, who can be used directly, no password oh.

This is the operator and UnionPay, banks and other financial institutions after the compromise, the current domestic mainstream mobile near-field payment business.

Senior personage will come out to clarify, only the first 3 points is the characteristic of NFC-SWP mode, the following points are the side effects brought by PBOC's financial IC card business stipulated by People's Bank. Yes, indeed. But in fact, because operators in the game with the financial institutions in a comprehensive compromise, resulting in only the financial sector in the world only such a large-scale standardization of NFC card issuing and processing environment, so if the financial application, the current NFC pay can be said to be basically useless. That's what I want to tell you. The second phase of domestic mobile near-field payment is currently underway.

At this particular stage, operators have been gradually bypassed, while UnionPay represents the entire financial sector and has been widely used in the quest for financial applications for NFC technology. Its biggest backing is that 1 of People's Bank's strong support and unified financial standards (will soon be linked to a variety of recent central bank statements to ban two-dimensional code, push NFC), as well as--2 large-scale distribution of "flash Qucikpass" contactless pos.

However, as the above user flow exposes, this stage has a congenital deficiency. First, the strategic compromise of the operator group headquarters does not mean that the operators of the provincial governors can agree to invest in real gold and silver, the ox of the financial sector. So we see several so-called mass tenders are wool, NFC phones are not so fast to popularize, so the user's handling threshold is too high, and second, the central bank's too strong and conservative, especially in the PBoC's electronic cash business and technical standards of long-term rigidity, leading to the banks can not effectively innovate, Can not be introduced to meet the needs of users, in line with the Internet scene mobile payment applications; In addition, bank UnionPay is too far from the level of mobile phone and related technology, while the technology of mobile NFC chip payment and traditional card payment is very different, and the control of bank UnionPay is very limited, which leads to a strong result in today's industrial incubation period. can only anxious.

In short, this is a special period, is a big game after the emergence of a special time window. If UnionPay bank can seize this precious time, the domestic mobile near-field payments are expected to shape. If not, either the NFC model fails completely or the third phase is bound to go.

UnionPay has done a lot of work, and has not relied entirely on cooperation with operators, such as an earlier attempt to do NFC SD cards, and later tried to work directly with the early NFC handset makers, and has been pushing the bank's common TSM platform. But in my opinion, it is basically a failure. Objectively, or because the PBOC standard frame dead business innovation and promotion of the upper limit, let a person powerless. Pick a few more obvious questions as follows:

1, consumption of flash card problem: If the electronic Cash card (or mobile phone) in the POS swing too fast, will appear card has been deducted, and the merchant POS trading failure phenomenon, so the merchant will refuse to provide users with goods. In this case, even if the user complained, can only stop using the card (even need to return the card, what about the mobile phone?), one months after the card issuer to confirm the user's loss, to inform the user to deal with the results, and then to the user to replace the new card, or the amount of

2, Recharge problems: the use of ordinary bank IC card to its attached wallet "electronic cash" recharge, it can only be on a bank counter or on a specific ATM machine; If you use the NFC Mode financial electronic cash, you may use the client to "recharge the air", but usually only from the main account card that is subordinate to it, cannot be transferred from other cards of the user's bank or from other banks. At the moment, the central bank is also pushing for so-called "non-designated accounts across the bank", but progress is limited. Furthermore, the entire recharge process requires multiple round-trip information interactions, in particular, related to the chip hardware response, the process is long, in accordance with the domestic existing mobile internet speed conditions, 30s is a reasonable estimate, in addition to poor customer experience, but also full of a variety of unilateral accounts, uneven account, to the liquidation brought greater trouble, And the bank is a pursuit of meticulous accounting institutions, so it is to the internal financial and risk management added countless worries;

3, customer complaints: When the customer on the use of electronic cash cards to consult the card issuing agencies, in fact, the card issuers are powerless, most of the cases do not know what the customer has done, because generally speaking, the merchant has not yet uploaded the transaction, and the rules on the clearly can not be in the card issuing system of accounting information. Under normal circumstances, can only ask the customer to the service network to elaborate the situation, and through the card reader/pos machine and other equipment on-site inspection of electronic cash card transactions.

I think that the second stage has come to an end, the overall is not optimistic, but there are still chance, in two breakthroughs:

1, a financial payment company, and I am building innovative payment business. This is the only bank in the country, the only one can issue the PBOC electronic Cash card enterprises, naturally bear the financial IC card reform and innovation of the Pathfinder mission, and more than the bank's advantage is that the company can issue bearer, pure electronic cash cards. We have made full use of this policy advantage, bold breakthrough, with NFC handset manufacturers jointly designed a "real-time open available, real-time trans-line recharge, at any time to inquire information" of the customer-centric mobile payment business, under the PBoC's framework, to try to maximize customer experience, to see what the market is the response. If successful, it is believed to provide the central bank, UnionPay and other banks with a reference model for business innovation. If not, I personally think that the PBoC's NFC application of electronic cash is difficult to continue. Of course, limited to a variety of reasons, at present, our products are still a lot of imperfect, by the way of feeling, internal innovation is too difficult, tears rushing ...

2, the infiltration of financial to public transport applications, to create NFC accept the market truly irreplaceable Big Mac. As mentioned above, the Flash POS environment is the only large-scale non-contact NFC acceptance environment in China and is standardized. The second is the use of public transport (the third is a campus card, hehe, in fact, these two areas in telecommunications have been dry, and eventually died in the sand), and relatively speaking, the public transit of the subway in the Non-contact card compared to consumer shopping more "just need" some. At the present stage, also coincides with the urbanization construction, the Intelligent City transformation Climax period, "the National Unification public Transportation application" Such proposal repeatedly mentions, some provinces already in the jurisdiction area began to carry on the integration annexation. At present, many parties are vying for the "unification" of the core operational role, relatively speaking, financial groups still occupy a certain advantage, at least can require the use of technical standards or compatible with financial norms. If successful, the financial standards of the NFC environment will remain invincible, even if the card issuer still do so bad, there is enough time to update the perfect. In addition to the bus there are other areas to consider, such as the market, taxis, fast food shops, vending machines and so on, relatively actually better to do, but the strategic significance of no bus so big. The central bank also attaches great importance to this, even to update the introduction of PBOC3.0 technical standards. But I have reservations about this standard, because it is too complex, completely technical rule of the world's thinking, and further regardless of whether users accept.

The third phase of NFC payment, with NFC terminal mobile phones as a typical hardware model, the right to operate by the handset manufacturers and application providers to lead together, and gradually open

OK, let's talk about the third stage, the title of this article, the future I want to say, and I think it will come soon.

First of all, why is there a third stage? Not to say that the second stage is not over yet, is it the end?

The world is so wonderful.

Domestic mobile near-field payments have long been a game for giants, whether operators or finance, are ultra-large, super strong power agencies, they make rules "allow" how users can use mobile payment, but the result is the user is not happy, "can not afford me to hide it?"

The investment is very brilliant, the result is very bleak and embarrassing, but the side effects are very interesting. The most important thing is that the church, fooled a lot of mobile phone manufacturers to real knife real gun to transform NFC. Unlike the few stars of the concept machine, only to domestic, for example, some have a strong sense of the brand, there is a better profit space for mobile phone manufacturers, real gun began to do NFC, such as Oppo, the Charm clan, millet and so on.

Just started to do, naturally will be the operator's customization, UnionPay bank's cooperation and so on, but with the mobile phone manufacturers of NFC business step-by-step and grasp, they will slowly find that the world can be more beautiful. As I have always said, payment is only a means to achieve the goal of a key link, operators do mobile near-field payment business is to "improve the stickiness and high value-added communications business", UnionPay Bank to do mobile near-field payment business is to "increase the card, enhance the use of cards active" similar, Mobile phone manufacturers will soon find their own positioning, NFC is to "more mobile phone selling points, more loyal customers, value-added services more powerful, higher brand value", in short, if the NFC payment business can do well, mobile phone industry can develop better, that is to pay a trivial cost calculate what? And since the chip is mine, Customer is my, Brand is my, that business form, business model must take me primarily!

Of course, most mobile phone manufacturers have not yet arrived at this step, in particular, the domestic handset manufacturers, after all, has been used to oppression, although the stuffy sound fat, but the general direction or listen to the Giants; However, this is another trend, such as millet, oppo such a brand-orientated company will inevitably evolve so. In particular, it is rumored that international Big Brother A has been brewing the next generation of products in accordance with this model. Once launched, it will be a complete reversal of the first two phases (especially for operators), and it announces the formal arrival of the third phase. And even if this time, it doesn't matter, it's just a bit of a delay, still irresistible.

In the third stage, the most obvious feature is that the handset manufacturer itself will be directly as the core of mobile payment operation, and all kinds of mobile payment applications have a fair and just opportunity to participate in. Compared with the first two stages, the mobile payment application of the carrier and the PBOC application of UnionPay Bank will only become one of the optional applications, and may still have the advantage of first mover, but no longer be the only in any form.

In the third stage, because of the mixed mobile phone manufacturers, will lead to the chaos of operating platform standards, will create NFC application adaptation difficulties, will result in online NFC acceptance environment disputes. In accordance with historical practice, there will also be a gradual emergence of platform integrator or industry alliance, combined with a large number of mobile phone manufacturers to develop a relatively standardized NFC operating platform to help mobile phone manufacturers to the minimum price to join the feast, gain. Similar to the current mobile phone's own app store, and the platform-generic app Store relationship. Of course, the first-mover mobile phone manufacturers, brand-oriented manufacturers will have the ability to monopolize their own areas, which have to pay the license of the handset manufacturers more obvious advantages.

In the third phase, NFC application providers with offline influence will have the most advantage and can realize the popularization of user's aggregation and O2O mode at the lowest cost. NFC online apps will be an absolute winner, and the advantages are too obvious compared to offline applications like the PBoC. Gradually, the best NFC application provider could become one of the new mobile payment kings.

In the third stage, users and merchants can truly gradually become familiar with and accept mobile phone payments, and to the market to solve the problem of security, credibility, complaints. The existing TSM platform model is bound to have a greater change of adjustment.

In the third phase, NFC and SE chip manufacturers will be promising. Hope that the domestic chip manufacturers, in time to participate in this feast. And now the mobile payment card, which is so much more than half the sky, is likely to suffer a major setback.

In the third stage, the problem of regulation will always appear, the more typical official master is the ministry and the central bank. Believe that some fast-growing mobile phone giants have the ability to cope with some twists and turns. After all, the user is king.

The third stage, the reasonable anticipation is officially launched in 2015, spends 2-3 years of time basic popularization.

The third phase may be not just NFC handsets, but other hardware models as well as other wearable devices. But NFC pays for the tough growth of these years, and it will give these more innovations a more acceptable development environment.