As 3G service gets increasingly popularized in China, mobile payment business has evolved into its growth period. In 2009, the users of mobile payment reached 108 million in China, up 25.6% yr-on-yr, and it is expected that the figure will be 147 million in 2010. Mobile payment is likely to become the first business mode integrating the Internet of Things (IOT) with mobile communication network.

With the coming of 3G era, three major mobile operators -- China Mobile, China Telecom, China Unicom, together with financial institutions, are actively promoting mobile payment services. In March 2010, China Mobile announced to acquire 20% stake of Shanghai Pudong Development Bank for the purpose of building a financial payment platform for developing mobile payment services in the future. In May 2009, China Unicom launched its first payment service based on 3G network in Shanghai, the service was mobile payment service on the basis of Near Field Communication (NFC) technology. China UnionPay announced that large-scale pilot mobile payment services would be provided in six provinces.

The huge potential market created by mobile payment has attracted a large number of participants in addition to financial institutions and operators, such as Nationz Technologies and Changjiang Electronics Technology being engaged in chip fabrication and packaging; Nantian Electronics Information and Zhengtong Electronics being engaged in POS terminal; Hi Sun Tech, Talkweb Information System, Westone and Union Mobile Pay being engaged in payment platform; as well as Nantian Electronics Information and Zhengtong Electronics that are special card reader manufacturers.

In China, RF-SIM card chips are basically from Nationz Technologies. The company's mobile payment security chip Zi1213 is the main chip of RFID-SIM card. Mobile payment chips and solutions are expected to bring considerable profits for the company. In fact, the business generated the sales revenue of RMB51.65 million for the company in 2009.

Nantian Electronics Information adept in POS terminals is one of the three selected manufacturers of POS machine by China Mobile. In 2009, 4,000 sets of mobile POS machine made by Nantian were ordered by China Mobile.

As an operator of “Network Mobile Payment of China Mobile” project, Hi Sun Tech has four traditional business sectors: electronic payment products, electric energy meters & solutions, telecommunication solutions and financial solutions. Among them, electronic payment products and electric energy meters contribute nearly 70% to the annual revenue.