Wang Jingyang: Standard does not unify the development of mobile payment industry

Wang Jingyang, general manager of Datang Microelectronics products and Solutions Center

News and information from November 30, 2012 to December 1, the 2012 third annual China Mobile Payment Industry conference held in Beijing Ambassador Hotel. This conference focuses on mobile payment innovation and practice, and focuses on the global development trend of mobile payment in depth. Wang Jingyang, general manager of Datang Microelectronics products and Solutions Center, delivered a keynote speech.

Wang Jingyang said that the mobile payments industry, although very fast in China, is slower than expected. And why? The primary constraint is the standard, including the product realization is not unified caused.

The following is a transcript of the speech:

Wang Jingyang: Good afternoon, everyone. Heard many industry leaders this morning, the future standards, norms, strategic aspects of a good plan, especially between UnionPay and several major operators, on the future of product cooperation, including business sharing, these aspects have reached a unified.

I began to do the smart card industry since 2000, and has been paying attention to the development of mobile payment industry. Although the mobile payment industry is developing very fast in China, it is slower than expected. And why? The primary constraint is the standard, including the product implementation is not uniform, at present this piece can achieve unity. The next responsibility falls to the product realization and the business advancement aspect, today I mainly from the product realization angle to discuss our idea.

Mainly from three aspects to introduce, we from the product and business implementation perspective, look at the mobile payment industry understanding. Report on the specific work of Datang in promoting the mobile payment industry, and finally on the joint efforts to build mobile payment industry.

The overall situation of mobile payment market

I introduced a lot this morning, the overall trend is very clear, is the rapid development. But we can see that, including the data that is easy to view, the development is very fast is the long-distance payment business, that is to say, this kind of line is more, the real enter trade development is relatively slow. Why? This is mentioned in the morning, it's under the line this piece, everyone product shape is also different, the protocol is also different, including equipment is also poor, so this piece is relatively slow.

There are several industrial components, one is in the rule-making side, under the guidance of the Government, including central bank, UnionPay these industrial sectors, mainly the formulation of standards. Two are technical providers, including terminal technology providers. Three is including the bank, including the operator this piece, everybody presents the pluralistic characteristic, this still waits for the further conformity and the consummation.

Mobile Payment product status. As a whole, the mobile payment product form includes the business application, all show the state of Blossom. Each scenario has its own pros and cons. Not that we unify the standards, these programs do not exist, in fact there are different applicability, like the iphone phone it has its own matching solution

We look at the target solution, this morning several operators are also introduced in this piece, but we from the product practice point of view, theoretically is the three major solutions, but the last was adopted mainly SWP SIM program, there are SWP SD program.

I give a Swpsim program that includes products that can really grow in China, mainly in two places. The first is the terminal really up, like next year China Mobile plans to send 10 million related mobile phones, we can look at the number of card issuers, next year the overall number of cards issued is 850 million, close to 900 million, 10 million in the inside is a relatively small proportion. From this point of view, in the next few years the real support SWP related mobile phone promotion is a time cycle, so the real mobile phone terminals can be widely spread out, is the goal of the implementation of a key point. The second point is that the application of the diversity and convenience, not the mobile phone took everyone will use, the real industry can not get up is the application. Like the Apple phone, it is because of the application store and a lot of rich applications are accepted, so it will quickly rise. So the second key point is the diversity and convenience of applications.

A comparison of several different schemes for mobile payment products. Different schemes will be further developed in the future, because the environment and objects they apply to, including their advantages and disadvantages, are actually different. The application scope of the sticker card is the widest, but the direct binding relationship with the mobile operator's business is not strong. The above mentioned is some understanding.

The following is an introduction to some of our company's efforts to advance the mobile payment industry. There are five aspects. First, the standard, lobby Wei East pay standards to formulate suggestions. The second is to lay a good foundation for products, mainly to provide a series of domestic mobile payment chip, applicable to different payment schemes. Third, improve the use of performance, the final product can be widely accepted, but also in your use of the effect, so in the 32-bit CPU and low power new technology follow-up, do a lot of layout. Four is to build a safe China core, with the domestic chip detection technology has done a lot of work. The five is the key to future application diversification, in the high efficiency, low code rate of the Java platform to do.

To introduce the situation of Datang Microelectronics, Datang Microelectronics has been with the Ministry of Public Security, the Ministry of Human Resources and social protection, as well as operators, UnionPay major commercial banks are doing in-depth cooperation, but also undertook a lot of national major special, but also the earliest application for international security qualification enterprises. Since 2000, we have been focused on smart card-related technological innovation, from the beginning of 2000 to 2012, our company in the domestic smart card-related technology innovation, has been dedicated their strength, but also applied for nearly 200 invention patents. In 2011 mobile payment products To achieve the size of sales, this year also launched a dual-interface series of chips for mobile payment field. We as a central enterprises to bear the responsibility of China core.

Our company chip basic situation, in the second generation ID card above provides the related product, occupies 1/4 market share. In the Social Security card aspect, starts from 2011, has occupied more than 50% market share. In the resident health card, now also introduced a variety of chips, in the future application of the population to do a lot of related work.

Let's take a look at the next three major goals for our products. Mainly is the SWP related chip, in order to realize one core to be many uses, has three kinds of different schemes. On a dual-interface mobile payment chip, we think that the transition period will be longer, may be a 5-year cycle, which will continue to exist, so we in the interface series payment, also put forward the relevant serialization products, applicable to the various different technical solutions just mentioned.

Secondly, we also propose a secure payment chip for the mobile payment terminal, which is a chip that can be applied to the network payment terminal, and it employs 32 independent and developed high-performance processors.

Third, in improving the performance of payment products, we have done related work, one is the development of their own intellectual property rights of High-performance, Low-power DMT32 CPU, the second is we also continue to upgrade the process, and further introduce Low-power, High-performance mobile payment products, have different product layout planning.

The forth is to build a safe China core. Datang Security Core, has the physical security, the security IP, the system security. Datang is one of the earliest companies engaged in the research of chip safety technology.

Let me introduce the protection against attack. We have just seen that mobile payment in the future market is very large, the application will be many, but will there be a problem? If the promotion of too fast, do not consider the security of these chips, perhaps wait a few years later will find a lot of hidden dangers, here is involved in how to provide a safe China core.

We protect against chip attacks from three aspects: first, the protection of non-invasive attacks, the implementation of 11 non-invasive attacks effective protection, through the use of relevant TD, VD, FD sensors, effective protection of external based on temperature, voltage, frequency attacks, there are related to DPA, Spa is based on energy consumption analysis of attacks, as well as electromagnetic radiation analysis. In addition, a real random number generator and a multiple physical random number source are adopted to ensure the randomness of random numbers. Second, semi intrusive attack protection, Datang core to achieve 8 of the half-invasive attack effective protection. Third, intrusion-type attack protection, to achieve effective protection of 12 intrusive attacks, the chip logic module anti-interference ability, external transmission information modification protection. Overall, through our years of accumulation, the security aspects of providing mobile data are ahead.

On the application side, we provide a Java platform, starting from 2002 to do a proprietary Java business platform, this platform has three features. One is the high processing efficiency, low code volume, can be a platform to do dozens of K degree is very difficult, we achieved this goal last year, and related products have passed our headquarters, including Everbright Bank (601818, shares bar) Some of the actual business verification and testing, this platform can support 8-bit, 16-bit, 32-bit and other related chips. Finally, there is support for multiple applications.

Thoughts on joint construction of mobile payment industry

1, the unification of standards. This is a lot of talk, but standard unification is only the first step.

2, the product realizes the unification of the plan. Product specific is what form, or will be a lot of, this inside how to integrate different programs, this is the most important.

3, supporting the construction of terminals, including the realization of interconnection, a piece in the next few years is a very critical point, everyone in their own terminal building, if the interconnection can not be realized, mobile payment industry will not be big quickly.

4, in the security system, in the chip security and business security, including the cycle of these related processes of security technology is very critical.

5, in the independent innovation of the state-owned chip security technology, currently seen in the mobile payment field is basically covered by foreign chips. Recently saw the 15, fighter 20 own things out of the country, I believe that in the future mobile payment industry, state-owned chips will also play their own world.

Finally look at us to form the industrial chain of a thinking. The most heard this morning, one is the unification of standards, there is another one is that everyone said the cooperation and mutual win. How to achieve this? I would like to have a few

Aspects. One is the unified standard to break the ice first, the second is the product realization scheme is gradually unified, the third terminal and platform interconnection interoperability, the fourth domestic chip and the national secret algorithm independent property right security mechanism use, the last is the distribution and the application service rich, the six mutually beneficial business model and the benefit sharing mechanism.

This is the main content, for the development of the industry is actually a very good time, because the overall, the country is also in a rising period, China is the fastest integrated circuit development and the largest country, our own industry friends can also be a good reflection of mutual recognition and reciprocity principle, I believe that China Mobile payment industry will have a good development, thank you.