Application examples of telecom operators in the field of RFID mobile payment

The mobile payment service using RFID (radio frequency idenTIficaTIon) has become a hot spot in mobile life. According to industry association Eurosmart and market research firm Strategy AnalyTIcs, consumers will pay $22 billion in mobile phones in 2011. At present, domestic and foreign telecom operators are vigorously developing RFID mobile payment applications.

RFID is a non-contact automatic identification technology. It automatically recognizes the target object and acquires relevant data through the RF signal of a specific frequency. The identification process can identify multiple high-speed moving objects at the same time without manual intervention, and the operation is convenient. Fast.

Depending on the frequency of use, RFID can be divided into low frequency (LF, below 135 kHz), high frequency (HF, 13.56 MHz), ultra high frequency (UHF, 860 to 960 MHz), microwave (MW, 2.4 GHz and 5.8 GHz). According to the way of energy supply, it can be divided into passive RFID, active RFID and semi-active RFID.

The basic components of RFID include tags, readers, and antennas. The working principle is relatively simple: after the tag enters the magnetic field range, it receives and interprets the RF signal emitted by the reader, and transmits the product information (passive tag, passive tag or passive tag) stored in the chip by the energy obtained by the induced current, or Actively send a signal of a certain frequency (acTIve tag, active tag or active tag); the reader reads the information and decodes it, and sends it to the central information system for data processing.

Due to its fast and easy operation and simple operation, RFID has developed a variety of extended applications from the most basic identification functions, such as product labeling, access control attendance, mobile payment, tracking and positioning.

RFID technology has been widely concerned by telecom operators. With the development of mobile communication technologies, telecom operators have regarded the research of RFID payment technology as one of the important directions of mobile phone value-added services. There are several reasons why telecom operators pay so much attention to RFID payment technology.

First, the development of RFID payment applications by telecom operators is a win-win option. After several years of development, mobile phone users have gradually become saturated, especially the voice service has been quite perfect, and the space for development has not been large. The eyes of telecom operators have turned to various value-added services on mobile phones. RFID applications are becoming more and more abundant, especially in the rapid development of public transportation and subway applications in 2010, which makes RFID technology gradually known and accepted by users, and user habits and industry chains have been cultivated. Therefore, more and more telecom operators regard RFID mobile payment applications as a strategic product for future mobile life.

Secondly, both RFID and mobile phones emphasize private and proprietary features. Typical applications for RFID are ID cards, bank cards, access cards, etc., which are used for personal identification-based applications. With the popularity of mobile phones, mobile phones are acting as At the same time, personal communication tools have become the identity of personal identity to a certain extent.

Again, there is a natural module in the phone that can be used to store identification and payment information - SIM/UIM cards. The SIM/UIM card is also a subscriber identity module for telecom operators. With the improvement of the process, the card capacity is getting larger and larger, and there is a large amount of remaining space for storing identification information related to a specific application, such as personal identification information of a bank card account, a bus card, and the like. The information in the SIM/UIM card can also be conveniently and securely managed through the air interface through the corresponding management platform, such as the OTA platform. At the same time, a single SIM/UIM card can store multiple RFID applications, and the various applications do not interfere with each other.

Finally, telecom operators have a rich and complete communication network that can show unexpected convenience in many RFID applications. For example, the traditional recharge method, the user must go to a specific network or POS machine to complete, and by using RFID and SIM/UIM card, you can use the mobile network to perform air recharge operations anytime and anywhere.
Telecom operators can use RFID mobile payment products to enrich their value-added services and increase user stickiness. RFID can rely on the strong network and driving force of telecom operators to promote the development of the industry chain. The two coincide with each other. In recent years, cooperation and exploration between the two sides have emerged, which jointly promoted the rapid development of RFID payment applications.

Common interests, market demand, and broad prospects are the driving force for telecom operators to promote RFID development. From QR code application to NFC mobile phones to today's RF SIM, on the development path of RFID mobile payment applications, telecom operations The business has made bold explorations and attempts.

In foreign countries, the most successful RFID mobile payment application telecom operator is Japan's NTT DoCoMo. Since the launch of the mobile payment service (CsaifuKeitai) in August 2004 and the launch of the mobile wallet business in December 2005, NTT DoCoMo has expanded this business to many overseas markets, including many European countries, Singapore, Hong Kong, China. Macau and so on. Its RFID mobile phone card business uses FeliCa IC as a mobile payment technology, and FeliCa IC technology is an RFID technology improved by Sony and Philips on the basis of NFC. NTT DoCoMo has established a complete industrial chain by integrating banks, merchants and mobile phone manufacturers. By integrating bank card information into FeliCa IC, users can use mobile phone terminals to perform mobile phone card consumption on POS machines in partner merchants. As of September 2008, there have been more than 49 million mobile payment users in Japan.