The People’s Bank of China (PBOC) has added a new function to its digital yuan payment app enabling mobile phone users to make payments without internet connection or power.
According to local reports users now have the option to activate the Tap to Pay function in the e-yuan app before choosing how many times it can be used and how much can be paid after their phone shuts down.
The system is currently available with Android-based mobile phones but is expected to made available on other handsets in the future.
The payment-without-internet-or-power function can be found in the payment settings of the e-yuan app.
It was reported by state media outlet Yicai Global, this week, that a verification code must be entered on the device if a payment exceeds the code-free quota, alleviating security concerns about whether people could spend money using a lost or stolen mobile phone.
In addition, if users have lost their mobile phones they can log in to the e-yuan app on another mobile phone to suspend the payment-without-power function.
Offline payments technology can be especially effective at making digital transactions more accessible to those in rural areas or where internet and mobile connection is not good enough. In some cases, it can allow those who don’t have access to an ATM pay without using physical cash.
China first started exploring the possibility of creating a digital currency in 2014 but progress has been slow. The country’s e-CNY currency has been in the pilot stage since 2020, when it was presented at the Beijing Olympics.
