Over 100 Million People Held Electronic Social Security Cards with Mobile Payment Enabled by 2019, Company Files IPO Prospectus

Recently, to accelerate the implementation of reform tasks proposed at the 19th National Congress of the Communist Party of China, such as “establishing a unified national social insurance public service platform” and “providing comprehensive public employment services,” and to promote the realization of reform requirements including “Internet + Government Services” and “streamlining administration, delegating power, improving regulation, and upgrading services,” the General Office of the Ministry of Human Resources and Social Security issued the Notice on Comprehensively Promoting the Application of Electronic Social Security Cards (Ren She Ting Fa [2019] No. 45) (hereinafter referred to as the “Notice”), in accordance with the relevant arrangements of the “Internet + Human Resources and Social Security” 2020 Action Plan. A responsible official from the Information Center of the Ministry of Human Resources and Social Security answered reporters’ questions regarding the comprehensive promotion of electronic social security card (hereinafter referred to as “electronic social security cards”) applications.

A: Thanks to the sustained efforts of human resources and social security departments at all levels, the number of Social Security Card (hereinafter referred to as the “SSC”) holders has reached 1.25 billion, covering 89.6% of the population. The SSC is widely used in employment services, social insurance premium payments and benefit disbursements, medical treatment and medication purchases, as well as other public livelihood services, serving as an identity credential and key vehicle for the public to conveniently and efficiently access these services.

With the rapid advancement of information technology, the public has higher expectations for the methods and quality of government public services. There is an increasingly urgent demand among social security cardholders to access human resources and social security services quickly and conveniently via the internet. Therefore, we have transformed the social security card into a “digital network card,” evolving the physical card into an electronic social security card that can be used in conjunction with mobile phones. This enables the public to conveniently access human resources and social security services, as well as other livelihood-related services, online through the electronic social security card.

Answer: The Notice elaborates on the significant importance, objectives, and basic principles of electronic social security card work from the perspective of facilitating public access and at a national level. It proposes six specific tasks and requirements for the comprehensive implementation of electronic social security card applications, with a plan to gradually achieve widespread adoption over two to three years, thereby establishing an integrated application model that combines online and offline social security card services.

A: The electronic social security card is the online form of the physical social security card. Like its physical counterpart, it serves as an electronic credential and settlement tool for cardholders to access human resources and social security services, as well as other public livelihood services, online.

The electronic social security card adheres to national unified standards. It is uniformly issued, managed, and verified by the National Online Identity Authentication and Payment Settlement Service Platform for Social Security Cards (hereinafter referred to as the “National Social Security Card Service Platform”). The electronic card corresponds one-to-one with the physical social security card, featuring a unique mapping, identical status, and equivalent functionality.

The electronic social security card, relying on the National Social Security Card Service Platform, establishes an online trusted identity system, a payment service system, and a data integration service system for the social security card.

A: To achieve the online-offline integration of the social security card, it is necessary to accommodate the diverse usage needs and habits of different population groups and business scenarios. We are realizing this integration by establishing an application system, a service system, and a management system for the social security card that span both online and offline channels. These three systems are being continuously enriched and improved, and they will be organically aligned with one another.

In the future, cardholders may freely choose to use either the physical Social Security Card or the electronic Social Security Card across different usage scenarios, based on their individual card usage habits. When the physical Social Security Card is not available, the electronic Social Security Card stored on a mobile device can be used as an equivalent alternative. However, if the physical Social Security Card is reported lost, the electronic Social Security Card will also be deactivated and rendered unusable.

Answer: As an online identity authentication credential, the electronic social security card can replace the physical social security card to perform identity verification over the internet. Leveraging biometric recognition technology, the electronic social security card enables online eligibility certification for benefits, eliminating the need for insured individuals to make in-person visits for verification. Furthermore, the electronic social security card facilitates rapid registration and login on government service portals. For instance, on the login pages of national or provincial government service platforms and public service websites of human resources and social security departments, users can scan a QR code with their electronic social security card to achieve quick registration and login.

After obtaining an electronic social security card, individuals can query online their social insurance enrollment information, employment and talent service information, personal employment information, vocational training information, professional qualification information, vocational skill level information, and information on support for entrepreneurship-guaranteed loans, among other details.

The electronic social security card also enables online application for various services, including employment and entrepreneurship services, social security services, labor and employment services, talent services, and mediation and arbitration services.

The electronic social security card also features mobile payment capabilities, enabling online payments for insurance premiums, examination fees, training costs, and medical expense settlements. Many cities have activated medical consultation and pharmaceutical purchase services through the electronic social security card. By presenting the electronic version on a mobile device during medical visits, patients can settle bills online directly without queuing after consultations, or complete scan-to-pay transactions when purchasing medications.

The above services will be gradually rolled out in accordance with local implementation progress. Social security-related functions will also be launched on the National Unified Social Insurance Public Service Platform.

A: The capabilities of the electronic social security card, including identity authentication, biometric recognition, and mobile payment, are made available to relevant government departments and institutions to support related public welfare services:

First, open up to the government services sector by supporting the use of electronic social security cards in government service halls at all levels, official government websites, and government mobile applications to enable identity authentication and rapid login. Support integrated medical care card applications, such as mobile payment for medical insurance (covering outpatient visits, medication purchases, and hospitalization).

Second, expand into smart city services by leveraging the electronic social security card’s identity verification function, integrating it with scenarios such as transportation, public utilities, and small-value payments, and promoting its application in areas like park entry, museum access, and travel.

Third, we will open up to financial services by providing payment services via the electronic social security card, thereby facilitating the collection of livelihood-related fees and the disbursement of benefits. We will also explore cooperation in areas such as online applications for social security card bank accounts, verification of bank account identities, and credit services.

A: The electronic social security card can reach users through various channels, such as mobile apps and websites. Individuals may apply for the electronic social security card via multiple platforms, including the mobile app of the human resources and social security department, government service apps, mobile apps of cooperating card-issuing banks, and standardized apps providing social and livelihood services. Currently, 138 apps or websites across China have launched electronic social security card services. A list of these enabled apps or websites is available on the website of the human resources and social security department. Cardholders may voluntarily choose an app to complete the application.

A: The electronic social security card is built upon the security framework of the physical social security card, establishing a secure mechanism for its online use. It is uniformly issued and managed by the National Social Security Card Service Platform, ensuring traceable information security.

In the application of electronic social security cards, the Notice requires localities to standardize business processes for online card usage, strengthen security management throughout the entire data lifecycle, and achieve trusted and secure access for online services, access security management, application risk prevention and control, and security traceability, thereby ensuring the security of personal data, online business operations, and financial transactions.

Implement authorization management for third-party channel applications, requiring functional and security testing prior to integration. Data involving personal basic information and personal business information must undergo individual, departmental, and channel authorization to ensure data and application security. The National Social Security Card Service Platform will establish a dynamic risk prevention and control mechanism for online business access, organize rectification for businesses and channels with potential risks, and suspend or terminate relevant services when necessary.

A: The electronic social security card adopts a model that combines unified standards with decentralized implementation, built through nationwide collaboration. National technical, management, and open service standards for the electronic social security card are formulated uniformly across China. At the ministerial level, a national social security card service platform is established, interconnected with human resources and social security business systems at all levels via the Golden Insurance Project’s dedicated business network, and integrated through headquarters-to-headquarters interfaces with relevant financial institutions and social service organizations. Local human resources and social security departments at all levels develop local application platforms, leveraging the electronic social security card as the foundation to deliver online applications for various human resources and social security services.

In advancing the application of the electronic social security card, clear division of responsibilities and coordinated collaboration have been established among the national, provincial, and municipal levels. A top-down synergistic approach has been adopted to fully leverage the core advantages of nationwide integration and unified networking of the social security card system, thereby jointly achieving the stated objectives.

A: We require all regions to achieve widespread adoption of the electronic social security card within two to three years, establishing an integrated online and offline application model for the social security card.

In 2019, various regions established identity authentication and human resources and social security inquiries as the foundational application scenarios for the electronic social security card, gradually expanding to high-frequency, high-engagement scenarios such as employment services, insurance premium payments, and settlement for medical treatment and medication purchases, while exploring the integration of other public livelihood services. This year, the issuance and application of electronic social security cards in accordance with national unified standards must be implemented across all prefecture-level cities, with no less than 10% of cardholders (i.e., at least 100 million people) activating their electronic social security cards, and mobile payment services must be enabled in all prefecture-level cities.

In 2020, no less than 25% of cardholders activated their electronic social security cards, which were widely applied in various service scenarios such as online identity verification, employment and talent services, social security information inquiries, payment for human resources and social security services, and settlement for medical visits and medication purchases. This marked the transition from local models to a unified payment and settlement model on the National Social Security Card Service Platform.

In 2021, a service and management model for an online-offline “All-in-One Card” was established, featuring extensive coordination and concurrent use of physical and electronic social security cards, thereby providing comprehensive support for the in-depth application of electronic social security cards in other government services, financial services, and smart city services.

While comprehensively promoting the application of electronic cards, it is also required that all regions improve their working mechanisms and strengthen foundational support and services.

Source: Website of the Ministry of Human Resources and Social Security