China’s e-CNY app launches offline payments

finextra.com:

The digital Yuan wallet was launched early 2022, and as of June last year was downloaded by 261 million individuals.

According to Yicai Global, the ‘Tap to pay’ function allowed for payments to be completed even when phones are turned off. It allows the app to activate smartphone hardware, such as near-field communication (NFC), which in effect turns the phone into a hard wallet. Users can choose to activate the function on the app, and can chose up a payment limit, up to 500 RMB, and a transaction limit, up to 10 payments.

The function is only available for androids in limited geographies and payment scenarios at this time.

While eyebrows may be raised over the security of this function in cases of a lost or stolen phone, it is reported that a verification code must be entered into the device if set payment and transaction limits are exceeded. Additionally, users can suspend the function by logging into the e-yuan app from another device.