China Telecom selects Gemalto for contactless payments

10 June 2014 | Kavit Majithia


China Telecom has selected Gemalto as one of its suppliers for its mobile contactless services suite.

Gemalto’s UpTeq multi-tenant near field communications (NFC) SIM is embedded within the company’s LTE management software, enabling China Telecom subscribers to access NFC services through mobile broadband.

With China’s population now numbering 1.4 billion, the service is designed to enable Chinese subscribers access to banking services in a contactless form, with over 400 million contactless chip payment cards issued by the end of 2013.

China Telecom’s NFC roll-out coincides with the rapid deployment of the contactless ecosystem, with most cities now equipped with contactless transport infrastructures. It is thought that millions of China Telecom subscribers will soon be able to use their mobile phones for everyday services.

“With smartphone penetration in China surpassing 66% and over 3 million contactless POS terminals in the field, the mobile payment ecosystem is in place. The major players in China are launching NFC initiatives, enabling China Telecom’s subscribers to experience a rich variety of contactless services,” said Suzanne Tong-Li, president of greater China and Korea at Gemalto.

“The UpTeq SIM’s additional LTE feature will enable China Telecom to deliver an enhanced NFC experience to their customers, leveraging the accelerated download of NFC applications using their LTE network,” she added.

China Telecom subscribers will be able to choose from multiple types of NFC-enabled mobile phones to make payments for transportation, dining, shopping and petrol throughout the country. Airport check-ins, personal authentication services and employee ID services will also be introduced in the future.