Eight Chinese banks accept payments made using NFC

Smartphones need an app called “Wallet” to use NFC.

Eight major Chinese banks are now using a smartphone-based platform called “Near field communication” (NFC) for mobile payments and financial services. Using an app called “Wallet,” users can connect their smartphones with their bank card accounts to make payments by swiping their phones against point of sales terminals. Users can also locate stores, hotels and other service providers and download vouchers.

An NFC phone can send signals for payments, which POS terminals can receive and complete transactions. There are some 1.3 million NFC-enabled POS terminals in supermarkets, stores, subway stations and restaurants throughout China.

The banks that have joined the NFC payment platform are Bank of China, Bank of Beijing, Bank of Shanghai, Shanghai Pudong Development Bank, China CITIC Bank, China Everbright Bank, GF Securities and China Minsheng Banking Corporation.

Credit card company China UnionPay has signed-up the eight banks for the launch of the new contactless mobile payments system in Shanghai. The new Wallet will let customers link their cards to NFC-enabled handsets from China Mobile.

NFC enables smartphones and similar devices to establish radio communication with each other by touching them together or bringing them into close proximity.