Rumor: China Mobile Debates Path for Mobile Payment
Caixin, 3/19/10
An anonymous source within China Mobile (NYSE: CHL; 0941.HK) has reported that China Mobile senior management have taken different positions on whether to emphasize development of online or offline mobile payment, due to differing costs, pros and cons. Currently, each provincial level subsidiary has halted expansion of mobile offline payment, while mobile online payment businesses have also been put on hold.
One industry source has reported that VP Li Yue believes that the costs of mobile offline payment are too high and advocates developing online payment functionality similar to Alibaba's online payment platform Alipay. In Beijing, for example, an RFID-enabled POS reader costs approximately RMB 2,300 and at least 20,000 units would be required, while 1 mln subscribers would need to replace their SIM cards with RFID-SIM cards that cost an average of RMB 105 each. Another concern is that if mobile voice fees become a form of virtual currency across businesses, China Mobile may risk running against government regulations.
When journalists recently asked to replace their SIM cards with RFID-SIM cards at China Mobile service halls in Beijing, the salespeople discouraged them, in stark contrast to a promotional campaign for RFID-SIM last month.
Keywords: contactless payment mobile Internet strategy Li Yue China Mobile wireless mobile payment CHL RFID 0941.HK regulation SIM card
Sending
