Digital RMB usher in new payment method with rollout of SIM card

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Chinese banks and mobile carriers are teaming up to roll out a SIM card purse product embedded in the payment platform of digital yuan, or e-CNY, further expanding the application scenarios of the digital currency.

Jointly developed by the Bank of China (BOC), China Telecom and China Unicom, the SIM card purse will provide a more convenient payment method for users as they only need to bring their cellphones closer to the point of sale machine to complete the payment process, the BOC said on its official WeChat account on Monday.

The mascot of digital yuan Photo: VCG

The payment can be made even if the user's cellphone is powered off or disconnected with the internet.

Yet users need to first change their current SIM cards with new super ones if they want to experience the new purse, and currently only invited users can have access to the function. It will later be promoted to other trial regions, the BOC said.

The launch of the SIM card purse for digital yuan reflected the organic integration between the financial infrastructure and IT infrastructure, it added.

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China has entered the "super SIM era" since 2016. Compared with ordinary SIM cards, the super ones have larger capacity for data, and more complex encryption algorithm to better protect user's privacy. Meanwhile, they can perform more functions, telecom industry analysts said.

In March, the payment platform of the digital yuan app started to support both Alipay and WeChat Pay. Users can make payments with their digital yuan wallets in WeChat's mini-programs.

Since the start of the year, the digital yuan continues to explore new application scenarios in pilot areas, ranging from the issuance of digital yuan red envelopes and salary distribution to the purchase of funds.

Moreover, regional governments are seen accelerating the use of the digital yuan in public services payment, financial lending, cross-border payment, medical care services and insurance claims.

Editor: CH

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