China UnionPay Establishes Mobile Payment Industry Alliance

China UnionPay has collaborated with commercial banks, mobile communication operators and mobile phone manufactures, among others, to establish the Mobile Payment Industry Alliance (MPIA). By fusing the strengths of various participants, China UnionPay aims to establish a standard specification and business model for the mobile payment with self-owned property rights so as to create a harmonious and sound industrial environment for the development of the mobile electronic business in China.

The first members to join the MPIA includes 18 national and local commercial banks, such as the Industrial and Commercial Bank of China, Agriculture Bank of China, Construction Bank of China and Bank of Communications, two mobile communication operator China Unicom and China Mobile, mobile phone manufactures like Nokia and Lenovo and related institutions including several intelligent card and secure chip card producers, acceptance terminal operators, system integrators and academies.

The founding of the MPIA will break down the barriers in different industries including the payment, communication, chip, intelligent card and electronic industries, etc, and form a platform for communication and close co-ordination. Alliance participants will jointly promote the intelligent card mobile payment business adopting the financial account and the international standard on contactless communication defined by the International Organisation for Standardisation (ISO). They will also co-formulate the mobile payment platform and technical solution that suit China and serve a wide range of application needs in the society.

The industry alliance is also a basic service platform built up by the bank and mobile communication operator. Users from various industries such as the bus, metro, water, electricity and gas, cinema, petrol, hospital, commercial retail and many more can all conduct convenient services based on this platform. The alliance integrates the consumer’s need, operator’s network capability, bank’s credibility, as well as seller’s marketing ability to forge a mobile electronic business circle that blends both remote and short-range payment. A China UnionPay spokesperson said that the MPIA was an open platform and would be open for other third parties to pursue common development and strengthen the mobile electronic business circle.


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