NFC is a short-range wireless connection technology standard that enables simple and secure communication between electronic terminals: simply close two NFC-compatible terminals to each other to a distance of a few centimeters, or have two terminals "contact" each other. Applications for NFC include contactless transactions (such as payment and transportation ticketing), simple and fast data exchange (including calendar synchronization or electronic business card exchange, and access to online digital content).
With the development of information technology, many cities have launched a bus card when they promote their city informationization. This method is convenient for citizens to travel without having to buy tickets with cash. This is the most basic application, and more applications are reflected in all micropayments. One card is the application of NFC technology. The application of NFC technology to mobile phones is another extension of the application of NFC technology.
The application of NFC mobile payment in the public transportation electronic toll is simply to use the mobile phone to pay for the bus and subway tickets.
Around 2005 and 2006, dozens of countries around the world such as South Korea, Japan, the Netherlands, France, and Finland have experimented with the application of NFC technology in public transportation electronic tolls and achieved certain results. In China around 2006, Nokia began experimenting in cities such as Xiamen, Guangzhou, Shanghai and Beijing. In 2007, Nokia launched mobile phones in Guangzhou, Beijing and Xiamen that have the functions of “Yangchengtong†and “One Cardâ€. This is the first case in China to launch this service.
According to a survey conducted by Nokia in Beijing, Guangzhou and Xiamen, 56% of users frequently use various municipal bus cards, and integrating these prepaid card functions into mobile phones, more than 80% of survey users expressed interest in this feature. A survey conducted by ACNielsen Research in China shows that more than 80% of consumers want to integrate payment tools such as bus cards and bank cards into mobile phones. It is estimated that the number of mobile phone users in China will reach 738 million in 2010, and NFC technology has great potential in the Chinese market.
At present, there are two main options for combining NFC technology with mobile phones. First, the NFC chip is implanted in the mobile phone, and the user needs to recharge the chip. This solution only needs to be achieved by the mobile phone manufacturer and the chip (one card charging) management company, which is a simple and convenient way. The second solution is to use sim directly for fee payment. This solution is the most convenient for users, but it will involve multiple industry chain links such as mobile operators, banks, and public transportation electronic toll collectors. The roles in the chain reach a unified cooperation. The pilot project in Xiamen, China, is that the NFC chip is independent of the SIM card.
The main problem with NFC mobile payment development in public transportation electronic tolls is the terminal problem. The above mentioned two solutions of combining NFC and mobile phones, no matter which one needs to re-install the mobile phone. At present, the technical application on the market, users can only choose to re-purchase the mobile phone, which greatly increases the cost of the service and imposes a serious burden on the user. A 30 yuan one-card recharge card and a new one to buy a mobile phone, which cost is more cost-effective. In addition, the credit problems of mobile payment, the profit model problem, and the cost of public transportation infrastructure equipment are all plaguing the next development of NFC mobile payment.
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