Zhang Qi, director of the China Information Industry Trade Association (CIITA), announced at the China Mobile Payment Industry Summit in Beijing today that 13.56MHz was tentatively selected as China's national contactless payment standard in a meeting in November 2010 between government regulators, Chinese banking network China UnionPay and China's three major mobile operators. The meeting was organized by the People's Bank of China (PBoC), Ministry of Industry and Information Technology (MIIT), and the Standardization Administration of the Peoples Republic of China (SAC). 2.4GHz will likely be limited to use in closed application environments such as corporate buildings, and will not be used in the banking and financial sectors.
During the meeting, it was also determined that China's three mobile operators - China Mobile (NYSE: CHL; 0941.HK), China Telecom (NYSE: CHA; 0728.HK), and China Unicom (NYSE: CHU; 0762.HK; 600050.SH) - will be required to apply for third-party payment licenses from the People's Bank of China in order to develop financial services, and establish independent operating entities to operate the new services. The PBoC will regulate the industry and penalize or shut down payment businesses that fail to comply with regulations. Additionally, all new mobile payment trials are subject to PBoC and MIIT approval. China's commercial banks, UnionPay, the three operators, and select R&D organizations will form a working group under the leadership of the PBoC and other relevant agencies to draft specific national standards.