China Mobile, China UnionPay drive m-commerce in Chengdu

The two companies will help the Chinese city become a model city for mobile commerce by deploying its NFC terminals and touting its mobile wallet business.

The Chengdu municipal government in China has signed a strategic cooperation agreement with China Mobile and China UnionPay to allow both companies to develop it into a model city for mobile commerce.

China Daily reported Monday China Mobile will support the city's goal by promoting its mobile wallet business and deploying near-field communications (NFC) terminals to support mobile payment. The telco will also work with China UnionPay to improve mobile payment technologies in Chengdu, it noted.

Chengdu, which is the capital of China's Sichuan province, was selected to be a model city for e-commerce in 2011 by the government and has since attracted various e-commerce industry players. These include telcos, financial organizations and content providers, the report added.

The deal with Chengdu is one of the first fruits borne from the partnership deal inked between China Mobile and China UnionPay this June . They had agreed then to collaborate on mobile payments services such as integrating banking details into SIM cards and NFC-based digital wallets.

They are not the only ones targeting the mobile commerce market though. Another Chinese telco, China Unicom, had collaborated with China Merchants Bank to launch their NFC-enabled mobile wallet service in Shanghai last month.