Detailed explanation: Development and thinking of digital RMB in the field of public transportation

Recently, the pilot application of digital renminbi has gradually expanded. The subways of Chengdu, Suzhou, and Beijing have successively supported the payment method of digital renminbi for ticket purchases. The public transportation field has obviously become a typical application scenario of digital renminbi.

So what is the overall application of digital renminbi in public transportation scenarios, and what room for development in the future? This article will focus on this aspect for a detailed interpretation.

Pilot cities for digital RMB and the status quo of public transportation

At the end of 2019, digital RMB pilots and tests were successively launched in Shenzhen, Suzhou, Xiongan, Chengdu and the Beijing Winter Olympics. By October 2020, 6 pilot tests including Shanghai, Hainan, Changsha, Xi’an, Qingdao, and Dalian have been added. In the region, the “10+1” pattern has been initially formed.

From the perspective of the “10+1” pilot cities, except for Xiong’an, other cities have urban rail transit. Among them, Sanya, Hainan is a tram, and all other cities are subways. From the perspective of public transportation, in addition to the fact that Xiong’an (Xiongan can use the Hebei Transportation Card) does not have an independent card company, other cities have independent operating entities that issue local transportation cards.

At present, most cities across the country have realized the mobile payment experience of scanning codes for rides. Subway operators generally realize scanning codes for rides through independent apps. Tongka companies promote self-operated apps on the one hand, and use small-sized apps on the other. The program and QR code interface are connected to Alipay and WeChat’s ride code system to facilitate the introduction of user traffic.

In addition to scanning codes, users can also use NFC cards such as transportation cards, mobile phone transportation cards, UnionPay cards, etc. And the applicability is also relatively high.

The manifestation of digital renminbi in the field of public transportation

Judging from the current expansion of digital renminbi application scenarios, the above-mentioned cities can access digital renminbi-related payment scenarios through transformation. Digital RMB wallet recharges and empowers transportation cards.

Different forms of access are also different, which can be divided into the following categories:

1. Access to the sub-wallet. Push the digital renminbi wallet of the operating agency to the app operated by the subway or the Tongka company through the form of sub-wallet push, and use the digital renminbi sub-wallet as the deduction channel to pay for the ride with the QR code after opening. cost. Closing the deduction can be achieved by closing the sub-wallet push.

2. H5 is connected directly. The operator of the subway or pass card company directly cooperates with the corresponding operating institution to support the direct display of the digital RMB wallet of the operating institution in its travel app, and click to directly activate the “secret-free payment” function of the digital RMB wallet. And this form of closure needs to be achieved through third-party secret-free payment management in the App.

3. The digital RMB App directly scans the code and rides. The operating agency cooperates with the local pass card or public transportation group to upgrade the acceptance terminal to enable it to accept digital renminbi direct scan code payment capabilities. This mode requires a comprehensive transformation of the system and the terminal, and the early stage is more suitable for pilots and applications in a small area.

4. Digital RMB wallet is used to open and recharge transportation cards. The operating agency cooperates with the local card company to recharge its physical transportation card NFC through the digital renminbi wallet of the operating agency, or open a mobile phone transportation card recharge, etc. In this mode, it can actually be divided into a sub-wallet or H5 direct connection, which is essentially a change in the payment method, but the service object has changed from a QR code to a physical card or a mobile transportation card.

5. The digital RMB prepaid card replaces the transportation card for direct rides. This method is equivalent to directly using digital renminbi “prepaid cards” for public transportation payments. It also involves the overall transformation of the bus and subway acceptance terminals, and because it involves contactless transformation, the cost and transformation are more difficult than QR codes.

Current status of digital RMB access in pilot cities

According to mobile payment network, among the 11 cities currently piloting digital renminbi (including Beijing), 7 cities including Shenzhen, Chengdu, Suzhou, Beijing, Shanghai, Changsha, and Qingdao have expanded digital renminbi-related pilot applications.

Detailed explanation: Development and thinking of digital RMB in the field of public transportation

From the perspective of the supported functions, except for Shanghai, the other 6 cities can use the digital renminbi-related wallet to realize the QR code ride payment in the form of non-secret deduction. The Shanghai Transportation Card App currently only supports mobile transportation card opening and sticker recharge through digital renminbi payment channels. In addition, Beijing, Changsha, Qingdao and other cities also support digital RMB online ticket purchase. In addition to the digital RMB deduction of the QR code, the Beijing Metro’s Yitongxing App also supports the opening of a mobile transportation card through the digital RMB channel and automatic deduction.

From the perspective of the supported cities, currently only Chengdu Tianfutong has realized the docking with the six major banks through the form of sub-wallets. Currently, the digital RMB App can open the sub-wallet push of the six major banks. In terms of other cities, China Construction Bank currently has the fastest layout and supports five cities: Chengdu, Shenzhen, Beijing, Shanghai, and Qingdao. Agricultural Bank supports Chengdu, Shenzhen, and Beijing. ICBC and Bank of Communications support one other than Chengdu. city.

From the perspective of participation, the sub-wallet still occupies the main form at present, and only Shenzhen, Suzhou, and Shanghai are directly connected to the H5 form through the operating agency.

In terms of supported public transportation methods, Shenzhen Tong App, Tianfu Tong App, Beijing One Card App, Changsha Metro App, and Qingdao Metro App all support QR code rides on subways and buses, and they all support digital RMB deductions. channel.

In summary, the current statistics of relevant pilot cases can be grouped into categories 1, 2, and 4 in the above classification of manifestations. So are there currently pilot cases for categories 3 and 5? Where is the challenge?

The ultimate goal of digital RMB entering public transportation

Domestic public transportation has always been a very characteristic payment market. From bicycle tickets, transportation cards, bank cards, NFC to QR codes, etc., it has also experienced various stages of mobile payment. In addition to the characteristics of small amount, high frequency, and rigid demand, another very significant feature is the closed-loop attribute that is different from ordinary consumption scenarios.

Therefore, it is obviously not a simple matter for the digital RMB to break the original closed-loop ecology of public transportation payment.

Whether it’s a sub-wallet or H5 direct connection, or recharging a transportation card through a digital renminbi wallet, in fact, digital renminbi still plays a role in another “payment channel”, essentially inheriting the previous payment and Consumption habits, such as which App QR code should be used to ride a bus, or which one should be used. The same is the transportation card.

In fact, this is not very consistent with the positioning of the digital RMB M0, and it does not highlight the universality and versatility of the digital RMB. It is more of a “subtraction” and attempt for the application of the pilot environment in the early stage.

Therefore, in the view of mobile payment network, the ultimate goal of digital renminbi entering the field of public transportation should be to fully open up the digital renminbi acceptance method, and realize that the use of a unified digital renminbi App can be used to swipe the code and ride, or any digital renminbi. The hardware wallet can be used to travel.

It is understood that as early as October 2020, the Bank of China Suzhou Branch and Changshu Changyun Information Construction Co., Ltd. jointly developed a joint research and development, and took the lead in opening a public bus line using digital renminbi payment in China. Passengers can directly open a wallet through the digital renminbi App, and use the payment QR code to conduct transactions when riding, so as to realize the digital renminbi ride.

This is an attempt by the digital RMB App to directly scan the code and ride a car. It is also a way that will be more likely to be able to unify the traffic and ride in the QR code field in the future to achieve interconnection. However, due to the difficulty of transformation and the different powers and responsibilities of different regions, the reasons are still A long way to go.

According to the mobile payment network, on December 10, 2020, “Tianfutong” completed the research and development of the country’s first smart contract prepaid card, realizing the application of public transportation scenarios, which is equivalent to directly swiping the card through this digital RMB prepaid card By car.

Detailed explanation: Development and thinking of digital RMB in the field of public transportation

Therefore, in the second proposal of using digital renminbi hardware wallets to replace transportation cards for direct rides, operators may prefer to use digital renminbi “prepaid cards” in the transportation field, but it is currently more difficult. According to the mobile payment network, Chengdu’s prepaid card transportation program is currently only a test environment, and a large-scale pilot program and implementation are not being implemented.

Relevant industry insiders stated to the mobile payment network that the expansion of digital renminbi in the transportation field is more about the game of commercial interests, such as the cost of terminal transformation, the issue of promotion and operation entities, and so on. The digital renminbi is a tool with its own system. If you want to completely break the inherent ecology of the transportation field, you need huge funds and resource support. This is also the reason why the above-mentioned ultimate solution is not easy to land.

“The sub-wallet is currently an application attempt in the form of online merchants, which can well include the operator.” He said. “But there are also problems with sub-wallets. At present, there are more than 30 merchants supported by sub-wallets. In the future, more and more online merchants will have a bad experience for users, and management will also become a problem. So for users The optimization of language interface and user experience is also very important.”

“For merchants and participants, in fact, whether it is in the form of QR code or NFC, the more important is the clearing and settlement process of funds. It is obviously impossible for the digital RMB to completely ignore the original operating entity. It may be possible in the future. More need to find a balance between the two systems.” He added.

Concluding remarks

At present, the digital renminbi is still only in the pilot phase, and the application in the transportation field is also only under exploration. The current application landing is more to seize the pilot opportunity, and there are still relatively few users that really satisfy consumers. In the absence of discounts and red envelopes Under the circumstances, it is difficult to change the original use habits of consumers. Therefore, how to change the entire transportation payment ecology through digital renminbi in the future is still a question worth pondering. In the end, we can only wait and see how to develop.


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