NFC Based Mobile Payment System, Xiaomi Mi Pay Announced
Mobile Based Payment systems have been on the rise in the last couple of years, with Apple Pay, Samsung Pay and Android Pay betting largely on this new segment. Though adoption rates have been disappointing in a few countries, these companies have been trying their best to make users start using them by providing enormous discounts. Xiaomi has announced it’s plan to enter this changing payment industry with it’s own platform.
Xiaomi’s CEO, Lei Jun announced the company’s NFC-based mobile payment at an event last night. This new service is called MI Pay.
What are NFC based Payments?
After launching the payment application on your phone, the phone is tapped on the credit card terminal and a connection is made using NFC. At this point, you may be asked to scan your finger or enter a passcode to approve the transaction. The transaction is then validated with a separate chip called the secure element (SE), which relays that authorization back to the NFC modem. From there, the payment finishes processing the same way it would in a traditional credit card swipe transaction.
Almost every new smartphone launching these days supports NFC, and it is safe to assume that Xioami’s future devices will be NFC Enabled to leverage it’s MI Pay platform.
Xiaomi has announced a number of banks that currently support MI Pay, and it includes a bunch of them like China Construction Bank, Bank of Communications, China Merchants Bank, Huaxia Bank, Minsheng Bank, Ping An Bank, and Industrial Bank. The company also reported that the list would be updated with more support from other banks in near future.
Just a few days ago, GOQii launched a newer NFC Enabled band, that when tied up with your Axis Bank account can be used to carry our wireless transactions in India.