Based on the issuance of Changsha Resident Card, China UnionPay joins hands with China Unicom to launch the smart card mobile payment business in Hunan. It is an effective product carrier for CUP mobile payment business available in both physical card and mobile financial smart card. The issuance volume within the year is expected to reach one million.
Changsha Municipal People’s Government and the People’s Bank of China, Changsha Central Branch jointly held the press conference on the financial standard Changsha Resident Card and CUP mobile payment. They announced the initial issuance of the financial standard Changsha Resident Card by China UnionPay in collaboration with five commercial banks including the Industrial and Commercial Bank of China among others. They also announced that China UnionPay and China Unicom would jointly promote the CUP mobile payment business in Hunan province based on the carrier of Changsha Resident Card. The press conference was attended by Han Yongwen, Vice Governor of Hunan Provincial People’s Government, Li Dongrong, President Assistant of the People’s Bank of China, Xu Luode, President of China UnionPay, Zhu Lijun, Vice President of China Unicom and representatives from relevant commercial banks.
Promoted by Changsha Municipal People’s Government and the People’s Bank of China, Changsha Central Branch, the Changsha Resident Card is a IC card product adopting PBOC2.0 financial standards jointly issued by China UnionPay, the Industrial and Commercial Bank of China, Bank of China, China Construction Bank, Bank of Communications and Bank of Changsha. The card supports both contact and contactless card swiping and enjoys higher security compared with a common bankcard. By integrating the relevant cards and certificates used by the residents for payment and settlement in their daily lives, the card possesses various functions such as rapid small amount payment, public service, industrial application, etc. It is an effective product carrier for CUP mobile payment business available in both physical card and mobile financial smart card. The issuance volume within the year is expected to reach one million.
Based on the issuance of Changsha Resident Card, China UnionPay joins hands with China Unicom to launch the smart card mobile payment business in Hunan, which is the first substantive progress made in mobile payment field since the two parties signed a comprehensive strategic cooperation agreement in November 2009. This cooperation effectively integrates the two parties’ network, user base and channel resources. With financial smart card as the carrier for payment account and mobile phone as the processing terminal for payment information, such an effort combines the mobile phone with the bankcard. It realizes remote payment as well as field payment, and supports both small and large amount consumption payments. Without changing the mobile phone number, the user can access this business through a customized financial smart card inserted into the mobile phone by the issuer.
At present, the user can make payments in Changsha by “swiping the mobile phone” in around 3,000 merchants covering various fields such as supermarkets, shopping malls, convenience stores, movie theaters, hospitals, drug stores, etc. It is projected that nearly 10,000 merchant terminals in the city will be able to support the field mobile payment business by the end of the year, roughly covering the major places for daily consumption by Changsha residents. By then, Changsha residents will enjoy the services provide by the all-in-one card for “food, clothing, transportation, shopping and medical treatment”. In addition, the equipment transformation for the bus and taxi system in Changsha will also be completed recently by when the users will be able to experience convenient transportation by “swiping the mobile phone” in 6,300 cabs and all the bus lines across the city. While continuously improving the contactless payment acceptance environment, CUP mobile payment will further enrich its remote payment function to extend the business to phone fee payment, airline ticket purchase, utility payment, etc. It is known that China UnionPay and China Unicom have been cooperating in researching and developing the payment solutions for China Unicom mobile application stores, which will provide more value-added services and applications for the cardholders.
Xu Luode, President of China UnionPay, expresses that the successful cooperation among China UnionPay, China Unicom and various commercial banks stands for a good beginning for the integration of bankcard, mobile communication and IC card industry. It will help to promote the establishment of the financial payment standard for the mobile payment industry and it has a positive demonstration effect. In the future, China UnionPay will adhere to the “cooperation for innovation and open for win-win result” principle and observe the principles of “market driven, open platform, diversified technology and standardized development” as always. It will maintain close cooperation with various relevant parties, and promote the development of mobile e-commerce to provide more secure, convenient and efficient innovative payment products and services to the people.
About CUP
Established in March 2002, China UnionPay (CUP) is a bankcard association established under the approval of the State Council and the People’s Bank of China. At present, the Shanghai-headquartered CUP has about 300 domestic and overseas associate members. In August 2003, CUP officially launched CUP card. Since then, CUP cards have been accepted in 90 countries and regions outside China. Financial institutions in 10 countries and regions have officially issued local-currency CUP standard cards.
By the end of June 2009, domestic networking merchants had reached 1,570,000, networking POS machines had reached 2,410,000 pieces and networking ATM machines had reached 215,000 pieces, respectively being 10.5 times, 10.5 times and 5.7 times of those in 2001 when China UnionPay was not yet established, which marks the formation of a large-scale bankcard acceptance network in China. In 2009, the national inter-bank bankcard transactions hit RMB 7.7 trillion, 83.7 times that in 2001 (prior to CUP’s establishment). The proportion of bankcard consumption in the total volume of retail sales of social consumables increased from 2.7% in 2001 to 32% at present.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
