Trunkbow International Holdings Limited, a provider of mobile payment services in China, on Thursday announced that it has signed a mobile payments deal with China Unicom. Under the agreement China Unicom will deploy Trunkbow’s new terminal-based MPS platform in Heilongjiang Province. Installation is expected to begin in the second quarter, with services scheduled to launch in the second half of 2012.
Under the agreement, Trunkbow will receive recurring revenue payments based on a percentage of monthly function fees and transactions processed using the MPS platform. Trunkbow and China Unicom plan to jointly market this MPS technology to retailers for phone-based payments at the point-of-sale, and to corporations, academic institutions and other organizations as a SAAS and enterprise automation tool for user authentication and internal payment capabilities.
This platform will allow China Unicom's 5.7 million subscribers in Heilongjiang province to make purchases at retail locations using their mobile phones at the point-of-sale, and will function as a secure electronic identification card for students and employees at schools and other locations that adopt the technology.
"This represents a sizeable opportunity, as we will simultaneously roll out user authentication and payment processing services, making the solution more attractive to end-users and increasing the value proposition for retailers, enterprise and institutional users," said. Qiang Li, CEO of Trunkbow. "Similar to our efforts in Sichuan Province, we are working closely with our partners at China Unicom to build awareness of the significant benefits of MPS technology among merchants and corporate IT executives, with a goal of evangelizing the technology and supporting broad adoption of MPS for multiple applications. Handset technology and wireless network infrastructure are improving rapidly, and we are confident that this ongoing mobile revolution will help drive mass-market usage of MPS as we enhance the solution through the addition of new features and functionalities."