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The Peony MasterCard features a microchip and a magnetic strip on the back. The microchip enables cardholders to store a lot of lifestyle information |
CHINA. The first-ever Europay, MasterCard and Visa-compliant chip-based credit card has been launched in China.
The Peony MasterCard card, introduced by Industrial and Commercial Bank of China (ICBC) and MasterCard International, marks an important milestone in the Chinese credit card industry, as ICBC is the first local bank to join the shift to chip-based cards.
The Peony MasterCard is an international dual-currency card which can be used for both Renminbi and US Dollar transactions.
ICBC Vice-President Zhang Qu said: “The [new card] enables cardholders travelling overseas to use POS systems and ATM machines. This allows the service also to be accepted locally, and provides huge opportunities for the local payments industry as we enhance the payments environment in China – especially in light of the 2008 Beijing Olympics.”
The card features a microchip and also a magnetic strip on the back. The microchip enables cardholders to store a lot of lifestyle information, such as loyalty points. It also has other potential bespoke applications, such as digital ID, e-ticketing, e-coupons and personal data storage.
Like all chip cards, the card holds information in an encrypted form which is said to be tamper-resistant and difficult to access. Using advanced cryptography the card can authenticate itself at POS terminals, therefore addressing the way most credit card fraud is committed.
MasterCard International’s Shuan Ghaidan, Head of Product Sales and Delivery, Asia/Pacific, explained: “Working with ICBC to lead the migration to chip-based cards in China is yet another milestone for us in our chip strategy. We have seen a significant reduction in fraud levels with migration to Europay, MasterCard, Visa chip-based cards in markets like Malaysia.
“Chip-based cards are also a platform for banks to develop highly differentiated products that can be customised to cardholders’ lifestyle needs. This launch is a significant development in the payments industry in China and we look forward to continuing our efforts to better improve the payments landscape.”
As of November 2005, MasterCard has issued over 41 million MasterCard-branded smart cards in Asia Pacific alone.
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