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Aishua CEO Chengjun Ji : NFC is developed for mobile payment

Recently the citizens in Guangzhou were shocked by a news. It is saying that "you can recharge your Yangchengtong or Lingnantong with a NFC enabled phone installed with Wechat V6.2!"

Then what is NFC? What kind of convenience does it bring to our life? The journalist arranged an exclusive interview with Chengjun Ji, the founder of Aishua (Beijing) Technology Company.

Experienced with 15 year experience on mobile smart device, mobile payment development and management, Chengjun Ji is well known as a professor on mobile internet and payment. He used to establish the first all-functioned-by-NFC pilot project in China mainland.

And he is the guy who drafted the standard of mobile phone, credit card, POS and application flow, his draft resolution was adopted by Chinese Standard. NFC is developed for mobile payment, said by Ji.

What is NFC? It is the abbreviation of Near Filed Communication.

It is a wireless communication technology, which allows P2P data transfer happened between enabled devices.

Why NFC?

Online payment crashed the tradition of our payment method. On the market of mobile payment, Alipay and Wechat Pay are developing very fast in China ( Mainland ) and widely accepted by consumers and merchants.

However Aishua selects and insists to make NFC payment as their direction and goal.

The NFC is usually placed in a retail business environment, but in fact, NFC can do more. Ji Chengjun said, "not just pay, when you need to verify your identity, actually can be replaced by NFC."

NFC was placed to a business environment on retail merchants, however NFC can do more in fact. "NFC doesn't mean Payment only, it also can be used for identification when necessary", Ji told us.

Chengjun Ji also points out the most important reason why they select NFC payment as their goal, it is the security. As been told by him, NFC is encrypted by hardware, and the chip is same as EMB is high security chip for financial usage.

As for the Alipay, Wechat Pay and other mobile online payment methods, Ji said that "there's a cooperation between us, as they are a licenced third-party middle man transfer money between bank and bank, but we provide an environment solution who supply the service before the transfer happen." 

Will NFC arrive its Peak?

Mobile payment methods developed very faster in these two years, however NFC is not widely known in China (Mainland) even it access to the market earlier. But Chengjun Ji expected that NFC is arriving its peak, maybe reached next year!

Compare with Facebook or Group-buying, NFC is developing slower as it depends on the technical environment. Firstly consumer's cellphone have to be NFC enabled, on the other hand POS in merchants have to supports NFC, and Roman was not built in one day.

But Ji believes that NFC is arriving to its peak because the basic environment had been established after the experience accumulation in these years. He provides us a data sheet that 80% POS support NFC payment in Guangzhou or similar cities in China. And more than 6 millions POS support all over China, including ATMs and Self-help service terminal.

The upsurge of Wearable devices likely to be the beginning of NFC upsurge to the market , Ji told the journalist. The QR payment depends the internet too much, so it is not the best solution for device with small screens or even without screens! Then the development of wearable devices will be a good chance to popularize NFC.

The merging of industrial chain blocks the promotion of NFC?

"NFC seems to be something of mobile payment to outward seeming, but it is something on the merging and cooperation of industrial chains." Chengjun Ji supports that. Mobile payment covers series of products and enterprises. The supply chain relates to MNOs, service supply, device supply, merchants and end-user.

Ji told the journalist that "we used to think that the merging of industrial chain might be the biggest obstacle of NFC promotion, but it seems that it is nearly to be a milestone but not a obstacle, as people realize that we have to cooperate with each other."

Online payment shocks the bank much, and BAT shocks MNOs, we have to believe that NFC market is breaking the ice since the flatness society makes merging of industrial chains moves faster and being a spread.