CRI听力:Chip Cards to be Widely Used in China

In China, although banks have gradually started to offer chip cards in recent years, few people really know what a chip card is.

Chip cards are an advanced alternative to magnetic strip cards. Also called smart cards or integrated circuit cards, chip cards have a unique identifier and digital seal that cannot be copied and put on to another card.

Li Dongrong, Deputy Governor of the People's Bank of China says chip cards are much safer and can perform multiple functions.

"The chip cards will enhance transaction security in China and provide a safe transaction tool for cardholders."

Since last year, the People's Bank of China and China UnionPay have started chip card trial operations in 47 cities around the country, including Shanghai, Tianjin and Guangzhou.

Up to now, the function that chip cards perform has been extended from banking to other areas such as transportation and medical care. Xu Luode, President of China UnionPay, explains.

"One card with multiple functions will benefit modern city management and urban informatization. What's more important, chip cards will offer more conveniences for people."

In Chengdu, people can take the subway with smart cards, while in Shanghai, it's possible to use them to pay for produce in vegetable markets.

Industry insiders estimate there were a mere 50 million chip cards in China at the end of last year. But according to figures from the People's Bank of China, the nation's central bank, the total number of bank cards in China reached about 2.8 billion in 2011.

Some neighboring countries, such as South Korea and Malaysia, have already migrated to chip cards, while Singapore, Japan and Australia are in the process of moving to a chip card phase.

For CRI, I am Zhang Wan.