NXP sees soar in activation rates for NFC transit in China

PARTNER NEWS: Activation rates for the NFC mobile transit solution introduced by NXP and handset manufacturer Xiaomi in China have grown more than 15% in Shanghai and over 20% in Shenzhen since services on the Mi 5 smartphone launched in June 2016.

NXPThe service has subsequently rolled out to four additional parts of the country: Beijing, Guangdong Province, Wuhan and Suzhou.

The solution allows commuters to download a transit app specific to their city. They can then load the virtual card in the app with funds from their Mi Pay mobile wallet before tapping to pay for journeys across public transport.

“With Xiaomi introducing a mobile phone equipped with NXP’s NFC and embedded Secure Element (eSE) earlier this year, the two companies collaborated to deliver secure, convenient mobile transit experience in China’s cities,” NXP says.

“Since initial launch of the mobile transit services in Shanghai and Shenzhen in June, activation rates achieved double digit growth among commuters.”

“We’ve been working in the background for quite a few years in understanding what it takes to launch transit services in China,” NXP’s Charles Dachs told NFC World. “We’ve been working with partners, including Xiaomi as one of the leading handset manufacturers, to make it possible to deploy transit services to end users.

“We think there’s a lot more potential in this. There are already implementations being tested with quite a large number of handset manufacturers, including almost all of the top Chinese OEMs. We definitely believe that this has potential outside of China too. There are many places where, ultimately, this could be deployed and made available to a very large amount of consumers.”

Xiaomi launched its Mi Pay NFC-based mobile payments service last month with initial support for debit and credit cards from a total of 20 banks as well as public transportation cards from six cities across the country.

Full details can be found in the press release:

NXP and Xiaomi Usher in Era of Secure Tap-to-Pay for Mobile Transit and Contactless Payment in China

Activation rates among commuters grew more than 15 percent in Shanghai and more than 20 percent in Shenzhen since launch in June

NXP Semiconductors and Xiaomi Inc. today announced they are successfully deploying best-in-class technologies to implement secure, convenient mobile transit experiences countrywide across China’s popular metro stations and public bus lines. And with Xiaomi’s recent launch of Mi Pay, featuring NXP’s embedded secure element (eSE) technology, consumers will benefit from the highest level of security for transactions from both bank and transportation accounts. Users can simply add their China UnionPay and public transportation cards to the Mi Wallet app in Xiaomi mobile MIUI system, eliminating the need to bring their wallets, making it even more convenient to use public transportation and go about their daily lives.

With Xiaomi introducing a mobile phone equipped with NXP’s Near Field Communications (NFC) and eSE earlier this year, the two companies collaborated to deliver secure, convenient mobile transit experiences in China’s cities. Since initial launch of the mobile transit services in Shanghai and Shenzhen in June, activation rates achieved double digit growth among commuters. And earlier this month, the two companies successfully extended the adoption of the Mi Pay app in both banking and public transportation cards for the launches of mobile transit services in Beijing, Guangdong Province, Wuhan and Suzhou.

“As mobile payment gradually becomes a natural part of people’s lives in China and the rest of the world, Xiaomi and NXP have cooperated in the promotion of innovative mobile payment in China since 2012,” said Feng Hong, Co-founder and Head of MIUI Division at Xiaomi. “Today, Xiaomi has over 200 million users around the world, a majority of these users are young tech savvy people who are the backbone of China’s thriving mobile internet market. We believe that NXP’s NFC technology and eSE solution coupled with Xiaomi’s hardware and smooth MIUI system can provide consumers with truly secure and convenient mobile payment experience.”

“The 15 percent in Shanghai and 20 percent in Shenzhen activation growths validates commuters’ preference to adopt secure mobile transit experiences. We’re excited to see how this payment experience will roll out in more cities in China,” said Rafael Sotomayor, senior vice president and general manager for the mobile business line at NXP. “To reach our goal in delivering the convenience of mobile transit in China’s cities, NXP doesn’t act as a pure hardware supplier but is driving an ecosystem convergence towards mobile transit.”

NXP’s NFC and eSE solutions combined with expertise and a comprehensive ecosystem for mobile-transit transactions, offer what’s needed to realize the benefits of mobile transit. The advanced technology increases engagement for those who value their mobile lifestyles, supports environmentally-friendly city concepts and benefits those who build and run transport services.

Today, the solution is used to enable Mi Pay and are available in China on Xiaomi’s Mi 5 smartphones. Mi Pay relies on a built-in NXP NFC chip with a separate secure element chip that has been proven to withstand a variety of invasive, semi-invasive and non-invasive attacks to provide the highest level of data protection and encryption to end users, payment issuers and smartphone manufacturers.

For more information about NXP’s NFC and eSE solutions visit the website.

About NXP Semiconductors

NXP Semiconductors enables secure connections and infrastructure for a smarter world, advancing solutions that make lives easier, better and safer. As the world leader in secure connectivity solutions for embedded applications, NXP is driving innovation in the secure connected vehicle, end-to-end security & privacy and smart connected solutions markets. Built on more than 60 years of combined experience and expertise, the company has 44,000 employees in more than 35 countries and posted revenue of $6.1 billion in 2015. Find out more at www.nxp.com.

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