Apple pay China: not open because of the difficult coordination of the interests of all parties

October 17, Apple IPhone6 officially on sale in mainland China market. However, the ApplePay service, which Apple's boss, Tim Cook, called "will change the way we pay", has not been open to mainland Chinese users in the same period.

A few days ago, a source told the "First financial daily" reporter that Apple is working with China UnionPay and other multi-party negotiations.

"ApplePay do is the tool, did not do the payment service itself, UnionPay is doing across the line settlement service, the two sides should not exist conflict, just talk about a benefit sharing model." "Beijing Grip Odd Data Systems Co., Ltd. Deputy general Manager Chu yesterday in an interview with reporters said.

Apple Beaches NFC payment

According to Apple, the ApplePay feature in IPhone6 uses a near-field communication (nfc,nearfieldcommunication) antenna that eliminates the need to open an application or activate the display, just close the iphone to a non-contact sensor, At the same time put the finger on the fingerprint recognizer TouchID, you can complete the shop payment.

Apple said ApplePay's payment information was stored on the iphone's internal chip and would not be shared with the merchant and would not be delivered with payment. Accurately speaking, ApplePay is based on the technology of fingerprint, NFC, token and so on, the core is NFC near field communication technology. At the moment, Apple has been working with major U.S. banks to support more than 220,000 stores in the United States.

At present, the major mobile phone manufacturers have to occupy the NFC market. Not long ago, Samsung's flagship mobile phone NOTE4 also supported nfc+ fingerprint payments. Google is also in the layout of mobile payments, after the unsuccessful Googlewallet, based on the HCE and token token of the product is its development focus. Domestic manufacturers Huawei has released its flagship mobile phone MATE7, but also with Alipay to support fingerprint payment. UnionPay, operators, third party payment agencies and other players have been active in the layout of mobile payments.

While NFC mobile payments are likely to be a future trend, NFC technology inventions have not developed for more than 10 years, and although operators and end-users have tried to do so, the payment technology is only a supplement to other tripartite payments. According to Gartner, NFC will pay $8.2 billion trillion at the end of the year, but only 2.5% per cent of mobile payments.

"Apple has a combination of other companies that do not have the ability to do chips and phones themselves, and to run their own stores, and many companies in the industry want Apple's user base." Apple to do NFC, it should be a big boon for NFC. "Chu said.

The interests of all parties are difficult to reconcile

According to Chu, there are different branches of mobile payment technology, by distinguishing between the security module (SE), the non-contact functional Module (CLF), and the location of the antenna, there are at least three options, "the first full-mobile NFC solution is to put SE, CLF, and antennas on the phone, which has nothing to do with the SIM card." The second SWP scheme is to put SE on the sim card, and CLF and antennas are on the phone. The third type of dual-interface card scheme, the SE and CLF are placed on the card, the antenna can be connected to the card without changing the phone, or mobile phone only to make an antenna and the SIM card connected.

But although there are no essential differences in technology, they embody the core interests of different players in the mobile payment value chain.

In the first model, as long as Apple, Samsung, such as mobile phone manufacturers by virtue of its brand appeal, attract users to a large number of NFC mobile phones, and the application provider full cooperation, can be directly "personalized" and "hairpin", completely bypassing the mobile operators.

"It can be said that the program most directly embodies the equipment provider, especially the terminal manufacturer's core interests, not to consider the interests of mobile operators, or even the use of mobile operators of the user base to carry out their own applications." This is one of many manufacturers ' attempts to treat mobile operators simply as providers of networks (channels). This is also the main reason why mobile operators are against NFC. So, although the traditional NFC technology was fully mature n years ago, but also for many years to promote, but in real business can be said to have no achievements, the root cause lies in this operator's boycott. "Chu said.

However, operators optimistic about the implementation of the SWP-NFC, also not by the terminal manufacturers bullish.

"No matter what technology, ultimately the player who can hold the consumer to pay the demand will probably end up laughing." "Chu said.

(Responsible editor: Lvguang)