He Xinchu, deputy general manager of China Mobile China Mobile Payments Co., Ltd. recently revealed that in order to popularize NFC (near-range wireless communication technology) terminals, China Mobile's headquarters will give a subsidy of 30 yuan for every NFC mobile phone sold. At the same time, in the mobile 4G era, China Mobile will increase its investment in NFC applications. China Mobile's headquarters has issued a document to determine that 4G cards must be bound to NFC-SIM cards by default. In fact, in the field of mobile payment, this kind of large-scale money-losing “enclosure†is not the first initiative of China Mobile. Previously, China UnionPay subsidized the cost of POS machine transformation. The two giants are vying for money to pay for NFC mobile payments. An important background is the central bank's strong support for NFC. China Mobile subsidizes NFC mobile phone manufacturers China Mobile Headquarters has issued a document to confirm that 4G cards are bound to NFC-SIM cards by default. In terms of NFC mobile phones, each terminal partner will send LTE (4G) high, medium and low-end products for testing before June 30, 2014. At least one product needs to have NFC function, and the product should have NFC function when it is first launched. If each terminal partner launches NFC product under other standards, it needs to launch the same NFC product under 3G standard. He Xinchu expects that with the continuous maturity of NFC terminal, SIM card and acceptance environment, NFC business will exceed 300 million yuan in the next 3 to 4 years. China Mobile plans to sell 30 million NFC mobile phone products in 2014. According to the subsidy standard of 30 yuan per unit, China Mobile needs to subsidize 900 million yuan to mobile phone equipment manufacturers. A person in charge of a payment agency told the reporter of "Daily Economic News" that China Mobile subsidized mobile phone manufacturers, with a subsidy of 30 yuan per unit, which can cover the input cost of manufacturers on NFC chips and promote the support of manufacturers to produce more models. NFC products are conducive to the promotion of NFC terminal use. By subsidizing the layout of NFC mobile phones, not only China Mobile, but China UnionPay took the lead in the transformation of POS non-connected functions in the direct-acquisition field. As of the end of the first quarter of 2014, nearly 3 million terminals were rebuilt, each The subsidy is between 300 and 500 yuan. Director Li Xiaofeng of the central bank's financial IC card leading group once said that the central bank will establish China's mobile payment technology testing and certification system. The development direction of China's mobile payment should be dominated by commercial banks, communication operators, and China UnionPay's NFC mobile payment electronic route. Subsidies or to increase user retention When it comes to the promotion of NFC, I have to mention the mobile payment platform jointly developed by China UnionPay and China Mobile on June 9 last year. The platform is based on the TSM (Trusted Service Management) system and promotes NFC-SIM mobile payment. However, the cooperation between China Mobile and China UnionPay is limited to joint promotion, and there is no specific profit distribution plan. Other operators and United Bank have launched their own NFC plans. For different operators and banks to launch NFC payment applications, China UnionPay also has an open attitude, all UnionPay "flash payment" POS terminals can support NFC payment. Jiang Haijun, deputy general manager of China UnionPay Mobile Payments Department, told the Daily Economic News reporter: "Union is a card organization, and it is more cooperative with operators and operators' payment companies. UnionPay supports NFC-SIM and NFC. NFC mobile phones have become more and more popular with the promotion and application of various NFC payment tools, such as terminal mobile phones and NFC-SD. The mutual cooperation and marketing of the industry chain is the key to NFC payment promotion." For China Mobile, what is the purpose of subsidizing mobile phone manufacturers? An industry insider told reporters that operators are pushing NFC mainly to increase user retention and reduce off-grid rates. “China Mobile subsidies are on the one hand to improve user stickiness. On the other hand, in the long run, they can also collect value-added service fees from banks and other partners for other communication zones of NFC-SIM cards.†The person in charge of the aforementioned payment institution said . It is understood that NFC-SIM cards have multiple smart card sectors, including communications, finance, etc. These sectors can be opened for use by banks, UnionPay, etc., and charge operating fees. Take the mobile payment platform of China Mobile and China UnionPay as an example. The UnionPay card is downloaded to China Mobile's SIM card zone, and China Mobile can charge operating fees, but the cooperation between the two parties is free. For all parties involved in pushing NFC mobile payments, it may be a good idea to reach a cooperation, but there is no clear profit model for the parties involved. Picnic Blanket,Picnic Rug,Picnic Mat,Outdoor Blanket Ningbo Fineweather International Trade Co., Ltd. , https://www.fwsbag.com