How much time can the two dimensional code payments be suspended for NFC development?

Ali, Tencent's virtual credit card and two-dimensional code-sweep code to pay because security is questioned, has been suspended for one months, due to the financial and communications areas, the central bank is working with the Ministry of Industry to develop two-dimensional code to pay the relevant standards, but it is reported that the standard is not too fast. There are insiders said, Ali, Tencent O2O in the ecological two-dimensional code to pay the way around the traditional offline receipts, and UnionPay favoured NFC (near-field payments) between the existence of a game of interest, two-dimensional code payment is banned, or in order to speed up the construction of NFC industry chain to set aside time.

Central Bank Financial IC card Leading Group Office director Li Xiaofeng, the two-dimensional code to pay low-cost but unsafe, so there is no password-certified two-dimensional code technology can not be used as a trusted payment technology online under a wide range of promotion. China's mobile payment development goal should be to promote the integration of mobile financial services and financial IC card, commercial banks, telecommunications operators, China UnionPay's NFC mobile payment electronic route as the leading, Third-party payment agencies, local/regional mobile payment electronic route to complement each other, to achieve complementary advantages, a wide-win situation.

In the mobile payment industry chain, operators, financial institutions and Third-party payment platforms all want to dominate. Operators have a huge number of mobile subscribers, all mobile payments must use their terminals and networks, banks have financial licences to maintain their position in the field of bank cards, and Third-party payment platforms have the advantage of being close to a lot of e-commerce users. In the third party mobile payment domain, NFC pays only 0.8%, but this technology is the operator, financial institutions in the mobile payment field of the strength of the push. In this battle, UnionPay's strategy is to win the cooperation of commercial banks, operators and local governments with UnionPay in the lead.

However, compared with the establishment of the third party mobile payment ecosystem, the NFC ecosystem (mainly involving UnionPay, banks, telecom operators, mobile phone manufacturers, etc.) has been developing slowly, and the user habits have long been developed. The main reasons include two major aspects:

First, NFC to really spread out, the cost of building a hardware environment is very high, the payment tools including NFC mobile phones, with contactless payment function of the financial IC card, such as POS machine terminals also need to be converted to support near-field payments.

It is reported that up to the end of the first quarter of 2014, UnionPay in the national "Flash" terminal POS machine has nearly 3 million units, can support the financial IC card and NFC mobile phone payments. UnionPay related person said, each POS terminal transformation cost is 300~500 yuan, accordingly calculates, UnionPay in the POS machine transformation aspect investment has reached 9~15 billion. UnionPay also said it was working together with third-party payment agencies to subsidize the offline POS machines.

In addition, with the Financial IC card full migration into the countdown (due to the bank's magnetic stripe card brush phenomenon is serious, the central bank in 2010 to accelerate the expansion of the financial IC card deployment, since January 1, 2015, all newly issued bank cards should be financial IC card, and realize merchant POS and ATM full coverage), UnionPay is also joint industry parties, to promote the financial IC card "flash pay" characteristics of the development to cover more use of the scene. As of the end of 2013, the national financial IC card issued a total of 467 million cards a year, accounting for the country's new issuance of 64%, the national cumulative distribution of 593 million financial IC card. According to industry chain Personage said, the financial IC card's principal in 8-9 Yuan/Zhang, the large-scale distribution, the cost burden is not low.

Second, the interest game between UnionPay, bank and operator will exist for a long time.

Since 2009, in order to compete for China's "GB" status in the field of mobile payment, China UnionPay is pushing the 13.56MHZ standard of the international market, the Chinese mobile is pushing the 2.4GHZ standard of independent research and development, by the end of 2012, the policy is basically tilted to the former.

In June last year, China UnionPay, in cooperation with Chinese mobile, said it would build a mobile payment platform with TSM (trusted service Management) system as its core to promote Nfc-sim mobile payments, but the two sides were limited to joint promotion, and there was no specific profit distribution plan. Recently, mobile headquarters issued a document, to popularize NFC terminals, mobile 4G card by default to bind Nfc-sim card, in NFC mobile phones, the terminal partners in the June 30, 2014 before the LTE (4G) high, medium and low-end products, each file needs at least one product with NFC function, Every NFC phone sold, mobile will give 30 yuan subsidy, according to Mobile in 2014 to achieve 30 million NFC mobile phone sales plan, mobile phone equipment manufacturers need to subsidize 900 million yuan. Other operators are also rolling out their NFC programs at union banks or handset makers.

The central bank's Li Xiaofeng also admits that the cooperation between NFC handsets, "flash-pay" terminals and the TSM platform has been difficult, and whether commercial banks, China UnionPay and telecommunications operators can form a close business model is still unknown.

Pausing two-dimensional code payments gives the NFC technology a respite, and now telecoms operators, financial institutions, and handset makers are speeding up NFC technology. While the interest-related parties are no longer caught up in the market growth of the internet company's two-dimensional code-sweep, they still have to face the two problems mentioned above.

Indeed, in terms of payment security, two-dimensional code payments are challenged by the fact that other people are maliciously implanted with Trojan horses and the identity of the cardholder (such as a device holder) is difficult to verify, while NFC near-field payments are based on physical carriers and hardware encryption. However, the two-dimensional code industry entrepreneurs, Miao Tao Net founder Miao Tao said, many people think hardware security is superior to software security, but not necessarily so, to lock the car as an example, although the remote electronic lock may be criminals copy signals, there are security risks, but it can not be considered as safe than iron chain.

This analogy is not necessarily appropriate, but in the face of new things, the regulatory layer in a more efficient and more open posture to standardize and improve it, will the effect be better? For young consumers, two-dimensional code-sweep code in the small payment of the role, not to say small. The government regulates and respects the market rules, is the two sides of a coin, in different industries to adjust both to the degree, the coin can turn good.