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Mobile Payment RFID0-SIM Technology Developed in China Is Expected to Become International Standard

2010-10-15

At the end of July 2010, the Shenzhen Traffic Construction Department announced that subway users will be able to pay for rides by using their cell phones in an extension of the highly successful mobile payment system for bus rides. Earlier this year, visitors to the Shanghai Expo have learnt that they were able to enter the Expo by scanning their mobile phones as long as they replace their SIM card with a RFID-SIM card, instead of buying a ticket at the ticket counter. Visitors could also scan their modified mobile phones to pay for meals, beverages and subway fares inside the Expo. This is what we called Mobile Payment Solution, which enables consumers to make payment for any products and services through mobile phones.

According to, Mr.Qiu Yiyang, an expert at the National E-commerce and Development Center, there are three leading technologies for mobile phone payment   nationwide: 2.4 GHz based RFID-SIM, 13.56MHz based NFC program and 13.56 MHz based poscap.

The RFID-SIM technology, developed by Chinese companies, can be applied to commercial transactions such as payment, recharge, transfer, shopping, etc. simply by swapping the regular SIM card for a RFID SIM card. Commercialization is relatively easy.  With a short industry chain, the application can be put into operation quickly and customers can easily accept this new payment method without changing their mobile phones.

Thanks to low cost and easily promoted features of the RFID-SIM program, the technology has developed very fast in overseas markets. Market demand for mobile payment overseas is substantial given that mobile payment is still in its infancy. 

It is expected that the Chinese RFID-SIM technology may be expanded into overseas markets and eventually become an international standard.

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