Mobile phone banking goes mainstream in China

The English version of the People's Daily Online newspaper reports that eight million Chinese mobile users have purchased everything from insurance to tickets using their mobile phones.

The transactions, made through China UnionPay,will be worth nearly 10 billion yuans for 2007.

8m users is roughly around 1.5% of the total number of mobile users in China and is set to catch up as more service providers allow mobile phone payments and more banks and commercial institutions.

The service has also been found to be particularly useful by people working in cities who wants to send money to their relatives far away in the rural areas.

In related news, the Royal Bank of Scotland has announced that it will begin trials of a new system called Tap and Go that will allow users to pay for items costing up to GBP 10.

The solution uses a short range, wireless technology to carry out the transaction.