Recently the citizens in Guangzhou were shocked by a news. It is saying that you can recharge
your Yangchengtong or Lingnantong with a NFC enabled phone installed with Wechat V6.2.
Then what is NFC? What kind of convenience does it bring to our life?
The journalist arranged an exclusive interview with Chengjun Ji, the founder of Aishua (Beijing)
Technology Company.Experienced with 15 year experience on mobile smart device, mobile
payment development and management, Chengjun Ji is well known as a professor on mobile
internet and payment.He used to establish the first all functioned by NFC pilot project in China
mainland. And he is the guy who drafted the standard of mobile phone, credit card, POS and
application flow, his draf resolution was adopted by Chinese Standard. NFC is developed for
mobile payment, said by Ji.
What is NFC?
It is the abbreviation of Near Filed Communication.It is a wireless communication technology,
which allows P2P data transfer happened between enabled devices.
Online payment crashed the tradition of our payment method. On the market of mobile
payment, Alipay and Wechat Pay are developing very fast in China ( Mainland ) and widely
accepted by consumers and merchants.
However Aishua selects and insists to make NFC payment as their directional goal. The NFC is
usually placed in a retail business environment, but in fact, NFC can do more. Ji Chengjun
said, “not just pay, when you need to verify your identity, actually can be replaced by NFC.”NFC
was placed to a business environment on retail merchants, however NFC can do more in fact.
NFC doesn’t mean Payment only, it also can be used for identification when necessary, Ji told us.
Chengjun Ji also points out the most important reason why they select NFC payment as their
goal, it is the security. As been told by him, NFC is encrypted by hardware, and the chip is same
asEMB is high security chip for financial usage.
As for the Alipay, Wechat Pay and other mobile online payment methods,Ji said that there is a
cooperation between us, as they are a licenced third-party middle man transfer money between
bank and bank, but we provide an environment solution who supply the service before the
Will NFC arrive its Peak?
Mobile payment methods developed very faster in these two years,however NFC is not widely
known in China (Mainland) even it access to the market earlier. But Chengjun Ji expected that
NFC is arriving its peak, maybe reached next year!
Compare with Facebook or Group-buying, NFC is developing slower as it depends on the
technical environment. Firstly consumer is cellphone have to be NFC enabled, on the other hand
POS in merchants have to supports NFC, and Roman was not built in one day.But Ji believes
that NFC is arriving to its peak because the basic environment had been established after the
experience accumulation in these years. He provides us a data sheet that 80% POS support NFC
payment inGuangzhou or similar cities in China. And more than 6 millions POS support all over
China, including ATMs and Self-help service terminal.
The upsurge of Wearable devices likely to be the beginning of NFC upsurge to the market ,
Ji told the journalist. The QR payment depends the internet too much, so it is not the best
solution for device with small screens or even without screens! Then the development of
Wearable devices will be a good chance to popularize NFC.
The merging of industrial chain blocks the promotion of NFC?
NFC seems to be something of mobile payment to outward seeming, but it is something on the
merging and cooperation of industrial chains.Chengjun Ji supports that. Mobile payment covers
series of products and enterprises. The supply chain relates to MNOs, service supply, device
supply, merchants and end-user.
Ji told the journalist that we used to think that the merging of industrial chain might be the
biggest obstacle of NFC promotion, but it seems that it is nearly to be a milestone but not a
obstacle, as people realize that we have to cooperate with each other.Online payment shocks
the bank much, and BAT shocks MNOs, we have to believe that NFC market is breaking the
ice since the flatness society makes merging of industrial chains moves faster and being a spread.