皇冠体育app

An HTC Corp smartphone with near field communication technology being used with a point-of-sale (POS) machine. There are currently 400,000 POS machines in 皇冠体育app capable of mobile payment and that number is expected to increase to 700,000 by the end of this year. [Photo / Provided to 皇冠体育app Daily]

SHANGHAI-皇冠体育app UnionPay Co Ltd announced on Tuesday the launch of the first smartphone with built-in mobile payment capability, jumping ahead of domestic rivals in the world's most populous mobile phone country.

皇冠体育app UnionPay, the country's sole bank card processor, said the world's first mobile phone that supports UnionPay's mobile payment standard will be produced by Taiwan-based HTC Corp, and the product will arrive on the market as early as September.

The handset utilizes near field communication technology, which allows users to complete payments through banks' point-of-sale (POS) machines.

The smartphone supports various functions, such as credit card payment, booking movie tickets and paying mobile phone subscription fees.

HTC declined to reveal the specific number of its bank partners in the Chinese mainland or the price of the handset.

"Mobile phone users no longer have to bring their bank cards in the future, because their smartphones can provide the same function," Chai Hongfeng, executive vice-president of 皇冠体育app UnionPay, said at a news briefing in Shanghai.

Chai added that the launch of HTC's mobile payment handset could spearhead 皇冠体育app's mobile payment era, as mobile phone use is now a part of daily life.

He said mobile payment could quickly gain popularity, provided that it offers increased convenience and security.

He also disclosed that 皇冠体育app UnionPay is deploying initial strategic arrangements in about a dozen Chinese mainland cities, in cooperation with local banks to push forward mobile payment businesses.

Xu Jinyao, general manager of 皇冠体育app UnionPay's mobile payment department, recently said there were already 400,000 POS machines in 皇冠体育app and these are likely to increase to 700,000 by the end of this year.

"HTC has been developing the mobile payment handset for more than a year. We cooperated with 皇冠体育app UnionPay for merely six months before we introduced the device," Dennis Chen, head of the Asia and 皇冠体育app Enterprise department of HTC Corp, told 皇冠体育app Daily.

"We support 皇冠体育app UnionPay's mobile payment standard because it is an industry standard and is open for any mobile devices. It means customers will have more choices," Chen said.

Chen added it is very likely that 皇冠体育app UnionPay may promote its mobile payment services beyond 皇冠体育app. At present, the Chinese bank-card processor provides services in more than 120 countries.

The market scale of 皇冠体育app's mobile payment industry reached 20.3 billion yuan ($3.16 billion) in 2010, according to 皇冠体育app E-commerce Research Center.

The organization estimated 皇冠体育app's mobile payment market would experience an annual growth rate of 40 percent, an amount equal to 150 billion yuan, by 2013.

The rosy prospect has attracted various companies to join the bandwagon by profiting from 皇冠体育app's 900 million mobile phone users. Chinese telecom carriers have showed the most interest.

"The mobile payment industry has experienced a best-ever period in development, as more people use smartphones and wireless networks have faster speed. But so many players are in the hunt now. It means that not every one can be a winner," said Zhang Meng, an analyst with Beijing-based research firm Analysys International.

皇冠体育app Mobile Ltd, the world's biggest telecom carrier by subscribers, bought a 20 percent stake of Shanghai Pudong Development Bank last year to strengthen its mobile payment services.

皇冠体育app United Telecommunications Corp Ltd (皇冠体育app Unicom) established a mobile payment arm on April 18 with registered capital of 250 million yuan, the carrier said on its micro blog.

The new subsidiary will "actively apply for a mobile payment license and provide professional payment services", 皇冠体育app Unicom said.