China to be one of the few countries to have a unified, national payments platform
China is currently working to develop a national mobile payments platform. Once the platform is launched, China will be one of the very few countries in the world to have a unified mobile payments system. Chinese consumers have been involving themselves in mobile commerce quite heavily in recent years. As mobile devices become more common throughout the country, people are using these devices to shop online more regularly. The country’s retailers have also been embracing mobile commerce in an effort to connect with a new generation of consumers.
Payment platform expected to make use of NFC Technology
China’s mobile commerce platform is to make use of NFC technology. The country believes that NFC has a bright future in mobile commerce because of the growing number of devices that are making use of this technology. NFC has formed the backbone of mobile commerce for some time and has been praised for its ability to transmit digital information over short distances efficiently. Unfortunately, mobile devices that do not support NFC technology are unable to use NFC-based platforms unless these platform offer support for devices that are not NFC-enabled.
Several organizations come together to help develop national payments platform for China
The China Constrction Bank, China CITIC Bank, China Everbright Bank, China UnionPay, and China Mobile have been linked to the development of the country’s national payments platform. These organizations already have some experience in mobile payments and have been promoting mobile finance for some time. According to the People’s Bank of China, mobile commerce is currently undergoing a standardization process wherein consumers are becoming more comfortable with purchasing products from their mobile devices.
Chinese consumers favor platforms that do not rely solely on NFC technology
Payments processed through NFC-based services represent approximately 0.8% of mobile spending throughout China. Many retailers have opted to support other mobile commerce services that do not rely entirely on NFC technology to engage consumers. Given the low availability of NFC-enabled devices, consumers have shown favor for NFC-free platforms that allow them to shop for and purchase products online.
Intel and UnionPay to develop new mobile payments platform
Intel has announced a new collaboration with China UnionPay, the only domestic bank card organization in China. The two companies will work together to create a new, secure platform for mobile payments. China has become a hub for mobile technology and many consumers are beginning to show strong favor for mobile commerce. In order to accommodate the needs of consumers, UnionPay has begun to take the issue of mobile payments more seriously.
Intel to leverage its security technology for new platform
Security is one of the major challenges that continues to serve as a roadblock to the widespread adoption of mobile payments. Mobile devices are beginning to traffic a significant amount of valuable financial information. This information has become a very attractive target for hackers and malicious groups looking to exploit this information. To address the security problem, Intel leveraging its Identity Protection Technology for the new mobile payments platform. UnionPay accounts for 3.5 billion bank cards, which are accepted in at least 141 countries around the world. Providing these consumers with a secure way to engage in mobile commerce may help mobile payments finally attain the momentum needed to begin replacing more conventional forms of commerce.
UnionPay showcases NFC-based mobile commerce service
UnionPay has also begun showing off its Quick Pass service, which in a mobile commerce service that makes use of NFC technology. More than 1.1 million NFC-enabled point-of-sale terminals were installed in December of 2012 in order to serve as an infrastructure for the Quick Pass service. This service is meant to perform alongside the mobile payments platform that Intel and UnionPay are currently developing.
Mobile commerce continues to find success in Aisa
Mobile commerce has found a great deal of traction in the Asian market. With mobile technology penetration high in many sectors of the market, mobile commerce has been able to establish a strong foothold in several countries. There are, of course, security concerns regarding the widespread adoption of mobile commerce, but companies like Intel and UnionPay are working to put these concerns to rest through the establishment of adequate security systems that will protect a consumer’s financial information.
