China's Digital Yuan App has launched a new feature to address the challenge of offline payments – the SIM card hardware wallet. This is not the first time that the app has introduced features to address the issue of offline payments. Earlier this year, it released a feature that enabled some Android smartphones to make offline payments by partnering with select phone manufacturers.

While continuing to collaborate with phone manufacturers, the digital yuan is now leveraging the involvement of telecommunications operators. China Telecom, China Unicom, and China Mobile have joined forces with Bank of China and Industrial and Commercial Bank of China to launch the super SIM card hardware wallet functionality. By linking the SIM card with the Digital Yuan App, users can make digital yuan payments by simply touching their phone to the point-of-sale device in an offline environment.

The landing of the Digital Yuan SIM card hardware wallet enriches the application of the super SIM card. The super SIM card covers multiple scenarios such as shopping payments, transportation, access control, and more, which helps the super SIM card integrate more conveniently into users' daily lives. A journalist visited the China Unicom Xidan store to experience the SIM card replacement and digital yuan offline payment functions. Users can obtain a new super SIM card for free at the store, and after inserting the new SIM card into the phone and setting up the association with the Digital Yuan App, they can experience digital yuan payments.

When making payments, users do not need to scan a QR code or display a QR code. They can complete the payment by touching their phone to the point-of-sale device, even when the phone is in lock screen or shutdown mode. At present, in digital yuan pilot areas, point-of-sale devices that accept digital yuan hardware wallets can also support SIM card hardware wallet payments. With the gradual deepening of the digital yuan pilot, the application scenarios of the digital yuan are steadily expanding to cover transportation, catering, accommodation, shopping, tourism, medical care, telecommunications services, ticketing, entertainment, and more.

Not having to turn on the phone to make payments raises concerns that the digital yuan might be stolen if the phone falls into the wrong hands. To ensure the safety of funds, users need to be aware of the relevant settings in the Digital Yuan App. First, small amount and password-free payment limits should be set flexibly according to the user's needs. If the transaction amount exceeds the password-free limit, the user needs to enter the payment password on the acceptance device. If the number of offline payments exceeds the limit, the transaction cannot be completed. If users are still concerned about financial risks, they can choose not to enable small amount and password-free payments, which would require them to verify their password on the point-of-sale device before making a payment.

If the phone is lost, users should promptly use another phone to log in to the Digital Yuan App, report the loss of the SIM card hardware wallet, or disable the offline payment function to prevent financial losses. Industry experts remind users that using the digital yuan is like using cash. While enjoying the convenience of digital payments, they need to be aware of security risks and take appropriate precautions.