The Qingdao branch of the Bank of China (BOC) has introduced an innovative payment option for Qingdao’s metro transit system: digital yuan hardware wallets. This initiative aims to enhance accessibility and convenience for travelers by enabling a “deferred payment” system. Here are the key details:
The Deferred Payment System
- How It Works: Travelers can use the public transit service first and pay later using the hardware wallet feature on their smartphones.
- Collaboration: Developed in collaboration with China Telecom, China Unicom, and Digital Finance Public Service, this system allows users to complete payments without requiring internet access or even power.
- Guidelines and Security: The system adheres to national transportation and financial security guidelines, making it a pioneering use of central bank digital currency (CBDC) in China’s metro sector.
- Near Field Communication (NFC): The hardware wallets utilize NFC technology for seamless transactions.
Enhancing Digital Yuan Wallets with NFC
- Oppo’s Wallet App: Chinese smartphone manufacturer Oppo has upgraded its wallet app, linking e-CNY accounts and providing users with additional payment options beyond official digital yuan apps.
- Super SIM Cards: China Mobile, China Telecom, and China Unicom have introduced Super SIM cards that store digital yuan account information. Users can upgrade their SIM cards to Super SIM without changing their numbers. Android phones currently support the Super SIM function.
- Contactless Payments: Super SIM users can make contactless payments without an internet connection or power. Other NFC features, such as car keys, are also viable.
Guangzhou’s Efforts for International Tourists
The Government of Guangzhou Municipality aims to improve digital currency accessibility for international tourists. Their recommendations include:
- Expanding Application Scenarios: Banks should intensify efforts to expand digital yuan application scenarios.
- Enhancing Convenience: Deploying digital yuan hardware wallet foreign currency exchange machines in key areas will enhance the convenience of digital yuan usage for inbound travelers.