Bank of China lets taxi drivers accept central bank digital currency payments on NFC mobile phones

The Bank of China is currently conducting a pilot program in Shenzhen to enable merchants to accept contactless digital currency payments using standard NFC mobile phones.

Taxi drivers participating in the pilot use the bank’s e-yuan central bank digital currency (CBDC) app to enter the fare amount for their passengers.

Passengers can then simply tap a contactless card, known as an e-yuan hardware wallet, against the driver’s NFC-enabled phone to make the payment. No additional hardware or traditional point-of-sale (POS) terminals are required.

Obtaining and activating an e-yuan hardware wallet is straightforward and can be done anonymously. These wallets have gained popularity among foreigners in China, especially during the Winter Olympic Games in Beijing in 2022, as they offer an efficient payment option for short-term stays in the country.

The solution aims to expand the use of e-yuan wallets, making it convenient for both foreigners and elderly individuals in China to make payments.