China Business News, 2/11/14
According to an inside source, the People's Bank of China (PBoC) has authorized the trial use of its mobile trusted platform service (MTPS), approved at the end of 2013, offering mobile payment service integration to telecom operators from seven trusted service managers (TSM) including China Construction Bank, China CITIC Bank, China Everbright Bank, China UnionPay, and China Mobile (NYSE: CHL; 0941.HK).
Li Dongrong, Deputy Director of the PBoC, has noted that the new platform will connect commercial bank payment systems with mobile carriers to minimize the need for redundant infrastructure.
Currently, China's three major telecom firms, China Mobile, China Telecom (NYSE: CHA; 0728.HK), and China Unicom (NYSE: CHU; 0762.HK; 600050.SH), operate their own mobile TSM platforms to provide mobile payment support across a variety of apps. Bank of China and several other commercial banking institutions have also established their own TSMs to provide partner telecom operators with mobile payment integration capabilities, creating a number of redundancies.
China's 2013 third-party mobile payment transaction volume reached RMB 1.2197 trln, representing a YoY increase of 707%, according to Chinese technology market research firm iResearch. Fund transfer and credit card payment apps became a major source of mobile transactions during the period, diversifying a market previously dominated by mobile shopping.
Editor's Note: For more background on this topic, please see "China's 2013 Mobile Payment Transactions Jump 707% YoY" MD 1/22/14 issue, "China UnionPay, China Mobile Complete Platform Integration" MD 2/22/13 issue and "China Telecom, Bank of China Partner on Mobile Payment" MD 6/20/13 issue.
Keywords: Li Dongrong China CITIC Bank China Telecom China Mobile China Unicom Bank of China China Construction Bank wireless mobile payment China UnionPay People's Bank of China Everbright Bank CHL 0728.HK 0762.HK 0941.HK 600050.SH CHA CHU 0939.HK