China's UnionPay working with Gemalto on building a secure mobile NFC payment ecosystem

Gemalto (Euronext NL0000400653 GTO), the world leader in digital security, is collaborating with China's UnionPay to build a secure mobile NFC ecosystem. UnionPay is China's leading payment scheme and has the world's largest network of payment cards, with more than 3.5 billion cards issued to date, as well as being a key advocate in China's mobile payment ecosystem. According to ABI Research, China's mobile commerce market is expected to become the world's largest by 2014, with an estimated $8 billion worth of transactions conducted via NFC.

The collaboration covers key deployment issues, including TSM interoperability, security and operational guidelines, as well as technology standards and specifications. The consultation is paving the way for UnionPay to develop its vision of constructing a future-proof NFC ecosystem for its issuer banks, as well as to enable its cardholders to conveniently enjoy secure yet convenient mobile contactless services.

"We believe that mobile payment has enormous potential in China," Chai Hong Feng, Executive Vice-President of UnionPay, said. "UnionPay is a staunch supporter of payment innovation, and mobile payment is an integral part of our endeavours Gemalto has a wealth of experience in NFC and mobile payment deployments worldwide. Therefore, our co-operation leverages the strengths of Gemalto and UnionPay to provide customers with greater payment convenience. As a leading bankcard association, UnionPay will continue to work closely with commercial banks, mobile operators and service providers to drive innovation and build a safe and convenient NFC mobile payment ecosystem."

"In a recent survey [1] conducted by independent research firm TNS, 93% of respondents in China consider security to be an important concern in adopting mobile payments. Gemalto's expertise in providing banking-grade security for NFC can provide consumers the peace of mind when using UnionPay's mobile wallet," said Suzanne Tong-Li, Senior Vice-President of Secure Transactions at Gemalto Asia. "With over 50 NFC projects implemented, Gemalto is unique in its ability to support UnionPay's plan to bring convenient yet secure NFC services to all its cardholders in China and beyond."

1. Online survey with 1 300 respondents was completed end-2012, covering Beijing, Shanghai, Hebei, Liaoning, Jiangsu, Zhejiang, Shandong, Guangdong, Hubei, Sichuan and Shaanxi.