Trend on Mobile Payment

Touch to PAY

Mobile payment using RFID

PMBA6009 Class A

Strategic Information Systems

Group 2 project report

Oi Yen Lee: #1997226497

Harish Kotwani: #

Naval Kumar Gupta:# 2010975605

Ivan Yip: # 2010969022

Janet Lai: #2010963133

Misaki Fukushima: #2010975473

Content

1. Emergence of Mobile Payment: NFC

2. Mobile Payment and NFC in Japan

3. Mobile Payment and NFC in China

4. Description, advantages, disadvantages & comparison of RFID & NFC

5. Security and Privacy Problems

6. Future adoption of RFID and NFC

7. Challenges of Mobile Payments: Adoption in Emerging Nations

8. Appendices

Executive Summary:

1. Emergence of Mobile Payment: NFC

2. Mobile Payment and NFC in Japan

3. Mobile Payment and NFC in China

The mobile payment and the NFC market in China

China has 720 million mobile users, among which around 150 million users are currently using mobile payment, and the market size was estimated at around $417 million in year 2010. But almost all of the transactions are related to online payment from a handset, rather than using the NFC technology.

NFC technology in China is not as popular as that in Japan. RFID is a technology that uses radio waves to transfer data from an electronic tag, through a reader for the purpose of identifying and tracking the object, the RFID system comprise of three components – RFID Tag, Antenna and the Reader. Under the NFC technology, the chips work as the RFID tags; and it requires the chip and antenna to be embedded into handset. Therefore, user has to change the entire phone and bear this cost. Clearly, this NFC has not been well received in China market.

China Mobile’s RF-SIM Technology

But no doubt that China mobile payment market has great potential because of China's large number of mobile users. In 2009, China Mobile, the country’s largest wireless carrier, developed the home-grown RF-SIM technology which combines SIM card with the RFID chip and...