Monday, January 26

White Frontier: Rare Earths, Bases, and “Who Owns Greenland?”

 



"We don't want to be Danes, and we don't want to be Americans. We want to be Greenlanders." — Mutter B. Egerd, Prime Minister of Greenland.

On January 4, 2026, Donald Trump uttered the words that shook the North Atlantic: "We need Greenland. It's absolutely necessary."

Danish Prime Minister Mette Frederiksen's response was equally unequivocal: "Greenland is not for sale. If the United States forcibly takes it over, it will mean the end of NATO."

An island, two great powers, and a century-long struggle over sovereignty: Who truly owns Greenland? But this story is far older and more profound than geopolitics.

I. The World's Biggest "Lie"

Between 60 and 83 degrees north latitude lies a landmass larger than France, Germany, and Spain combined. Its name is "Greenland."

This is one of the oldest lies on Earth.

In 982 AD, a Viking exiled to Iceland for murder spotted a small patch of green tundra deep in the fjords. He gave this land, 80% of which was covered in ice, an enticing name, hoping to attract more colonists. His name was Erik Tovaldsson, but history remembers him as Erik the Red.

This naming ranks among history’s most persuasive deceptions.

The Greenland ice sheet holds 2.85 million cubic kilometers of ice, storing 7% of Earth's freshwater. What if it melts entirely? Sea levels would rise 7.2 meters. Cities like New York, Shanghai, Mumbai, and London would be swallowed by the sea. This is no ordinary land. It is the second heart of the Earth, second only to Antarctica.

And this heart is melting.

II. The First Batch of Owners

AClose to 2500 BC, not long after the last Ice Age, hunters from what is now northern Canada crossed the frozen strait. Greenland, remote and wild, became their home. They chased musk oxen and caribou, building camps with animal bones and stones. Today, archaeologists call them the "Sakac Culture."They lived here for nearly two thousand years. Then, they disappeared.

There were no traces of war, no evidence of plague. Only the climate—long, cold cycles that drove prey to migrate and sea ice that sealed everything off.

Ice cores are archives of time. Scientists have drilled ice cores from the Greenland ice sheet, recording climate changes over the past 100,000 years. Each layer of snow represents a year's history. Every air bubble preserves the air of that era.

The Sakak people knew nothing of this. All they knew was that winters were getting longer and longer, and prey was becoming increasingly scarce. Eventually, they either left or died.

But Greenland did not remain vacant for long.

Around 1200 AD, another group of people set off from Alaska and migrated eastward along the Arctic Ocean coast. They brought with them more advanced technologies: collective hunting methods to kill bowhead whales, kayaks made of seal skin, and an animal that had coexisted with humans for nearly 10,000 years—the Greenland Husky.

Genetic studies have shown that these sled dogs have a direct genetic link to an ancient breed from Siberia 9,500 years ago. Unlike ordinary dogs, they don't bark; they howl like wolves. This isn't a sign of domestication, but a memory of the wilderness.

This group of people who migrated from Alaska created the "Thule culture," and they are the direct ancestors of today's Greenlandic Inuit. The Inuit call themselves "Kalaallit"—"Greenlanders." They call this land "Kalaallit Nunaat"—"Land of the Greenlanders."

The Inuit have lived in Greenland for eight hundred years—a testament to endurance. No European can match that.

III. Five Hundred Years of the Vikings

In 985 AD, Eric the Red set sail from Iceland with 25 ships and more than 500 colonists. Only 14 ships reached their destination, but that was enough.

The Vikings established two settlements in Greenland, which at their peak numbered between 3,000 and 5,000 people. They built churches, raised cattle and sheep, and exported walrus ivory and narwhal tusks to Europe—in medieval Europe, narwhal tusks were sold as the legendary "unicorn horn" for prices comparable to gold.

Eric's son, Leif Ericsen, continued sailing westward from Greenland, becoming the first European to set foot on the North American continent—nearly five hundred years before Columbus.

Then, they disappeared.

On September 16, 1408, a wedding was held at Hvalsey Church. This is the last written record left by the Greenlandic Vikings. After that, no more news came from Greenland back to Europe.

When the British explorer John Davies reached Greenland in 1585, only the Inuit remained. The ruins of Viking settlements lay silent, buried by weeds. What happened to 3,000 people and 5 centuries of history? Silence. What happened?

First, there was the climate. The Little Ice Age, which began in the 14th century, shortened Greenland's summers and lengthened its winters. Pasture could not grow, and livestock began to die. Worse still, sea ice blocked sea routes to Europe, and trading ships could no longer reach the island.

Next came economic collapse. The walrus ivory trade, critical to Viking prosperity, did not fail due to walrus extinction. Instead, it succumbed to a flood of African ivory onto European markets. Greenlandic Vikings fell to a continent they'd never seen, much less imagined. There was also competition. The Thule people were migrating south from the north, possessing technologies the Vikings lacked: kayaks capable of hunting seals on sea ice, and the ability to build igloos in the harshest winters. The Vikings maintained a European way of life—cattle herding, farming, and building churches. They hadn't learned the Inuit survival techniques.

Ultimately, they paid the price for this pride.

Greenland teaches a harsh lesson. This land belongs to no one. It only gives shelter—fleetingly—to those who learn to live with it.IV. The Shadow of Colonialism

In 1721, Danish-Norwegian missionary Hans Egerd arrived in Greenland in search of the "Lost Vikings." What he found were only Inuit people and Viking ruins scattered across the tundra.

Egerd did not give up. Now that the Vikings had disappeared, he turned his missionary focus to the Inuit. This marked the beginning of Denmark's three-hundred-year colonial rule over Greenland.

Colonialism is never just politics. It is the erosion of language, the rupture of culture, and the tearing apart of identity. Sometimes, it is even the possession of the body.

"The Little Dane Experiment"

In May 1951, 22 Greenland Inuit children were sent to Denmark. They were between 5 and 9 years old, and only 6 of them were true orphans—the parents of the rest were told it was an "educational opportunity."

The children were forbidden from speaking Greenlandic in Denmark and were required to communicate only in Danish. More than a year later, they were sent back to Greenland—not to their families, but to a Danish-speaking orphanage in Nuuk. Many never saw their parents again.

Survivor Helen Thyssen recalled, "When I returned to Greenland, I ran to my mother, excitedly talking. But she couldn't understand me. I was speaking Danish. I had forgotten my mother tongue. I didn't find out until I was 46 that I was part of an experiment."

Of the 22 children, half developed mental illness or drug addiction in adulthood, and half died prematurely in middle age. By the time the Danish government issued a written apology in 2020 and an in-person apology in 2022, only six were still alive.

Frozen uterus

Between 1966 and 1975, Danish authorities implemented a large-scale birth control program in Greenland. More than 4,500 Greenlandic women—estimated to be half of all women of childbearing age at the time—were implanted with intrauterine devices (IUDs). Many were not informed that it was an option. Some of the girls who underwent the procedure were only 12 years old.

Greenland’s birth rate has halved in the last decade.

Survivor Naya Liebers said, "Our bodies have been frozen for decades. The uterus is our most sacred organ, and reproduction is our fundamental right. No government has the right to decide whether we can become mothers."

This history explains many things. It explains why Greenland has one of the highest suicide rates in the world—80 to 100 per 100,000 people, and seven times higher than in Denmark among young men.

It also explains why Greenlanders' anger was so profound when the US president claimed he wanted to "buy" Greenland. They had been used as experimental subjects, and their bodies had been treated as the property of colonists.

They will not be "bought" again.

V. The Secret Beneath the Ice

In 1941, Nazi Germany occupied Denmark. Henrik Kaufmann, the Danish ambassador to the United States, made a bold decision: he signed a defense agreement with the United States "in the name of the King of Denmark," allowing the US military to establish a military base in Greenland.

The puppet government in Copenhagen charged him with treason. After the war, the Danish parliament ratified the agreement, and Kaufman went from being a "traitor" to a hero. Meanwhile, the United States gained a firm foothold in Greenland.

The Thule base and the expelled Inuit

In 1951, the United States established Thule Air Base at the northernmost tip of Greenland—located directly beneath the shortest flight path between Washington and Moscow.

But the construction of the base came at a price. In May 1953, 27 Inuit families—about 116 to 130 people—living in the Pitufik region were told they had to relocate. They had only four days to pack their belongings and were moved to a desolate location more than 100 kilometers away.

The relocation date was carefully calculated: to be completed before June 5, 1953. This was because the new Danish constitution, which came into effect on June 5, contained provisions on compensation for land expropriation. Relocating before that date meant no compensation would be required.

Survivor Balika Jensen recalled, "We looked back and saw our houses overturned in the wind. Everyone was crying, especially the elderly."

Ice Worm Project

In 1959, the U.S. Army began a secret project deep within the ice sheet. Externally, it was called "Campus Century"—a scientific research station. Internally, it was known as "Project Ice Worm."

Camp Century's 21 tunnels stretch nearly 3 kilometers deep into the ice sheet. It has its own hospital, church, cinema, and even a nuclear reactor—the world's first mobile nuclear power plant.

But this was just a cover. The real plan was to build a massive missile launch network under the ice sheet—2,500 kilometers of tunnels, 600 nuclear missiles, covering an area equivalent to three Denmarks.

This plan was never disclosed to the Danish government.

Project Iceworm ultimately failed—not because it was discovered, but because of physics. The Greenland ice sheet was not static; it was slowly shifting. The tunnel walls began to deform, and the ceiling began to sink.

In 1967, Camp Century was abandoned. The Americans took the nuclear reactor, but left everything else behind: 200,000 liters of diesel fuel, 24 million liters of untreated wastewater, and an unknown amount of radioactive coolant. They believed that ice and snow would bury these things forever.

They were wrong.

In 2016, scientists warned that due to global warming, waste from Century Camp could be exposed on the surface by the end of this century. The ice cap is revealing humanity's secrets.

In April 2023, Thule Air Force Base was renamed "Pitufik Space Base." Pitufik means "place to tether dogs" in Greenlandic. The United States returned the name and recognized the cultural heritage. However, control under the radar dome remains entirely with the United States.

The separation of nominal sovereignty and actual control—this is a microcosm of the current situation in Greenland.

VI. Red Stone and Black Stone

Nasak in southern Greenland is Greenland's only large-scale sheep-grazing area. In summer, the fjords look almost like the Norwegian or Scottish Highlands—green grass, flowing water, and quiet flocks of sheep.

But behind this idyllic landscape lies a war for the fate of Greenland.

Behind the ranch lies the Kuannersuit Plateau, home to one of the world's largest rare earth deposits—as well as uranium. Rare earth elements are key raw materials for smartphones, electric vehicles, wind turbines, and missile guidance systems. Currently, China controls 90% of the world's rare earth processing capacity.

In 2007, an Australian company obtained a mining license for the Kuannersuit deposit. One of its shareholders was China’s Shenghe Resources, the world’s largest rare earth processing company.

The residents of Nasak began to worry: "They told us there would be jobs, there would be prosperity. But what they didn't tell us was that there's uranium in that mountain. Uranium will pollute our water sources. Our sheep drink that water. Our children drink that water."

In April 2021, Greenland held parliamentary elections. This election, later dubbed the "mining election," revolved around a single issue: whether uranium mining should be permitted.

The Inuit community, opposed to uranium mining, won the election. The new government quickly passed Law No. 20, banning the mining of deposits with uranium content exceeding 100 ppm. This law effectively sealed the fate of the Kuannersuit project.

But the story didn't end there. The Australian mining company then initiated international arbitration, seeking $11.5 billion in damages from the governments of Greenland and Denmark—almost four times Greenland's GDP. In October 2025, the arbitration tribunal ruled in favor of the Greenlandic government.

This reveals a harsh reality: while the 2009 Greenland Autonomy Act granted Greenlanders ownership of mineral resources, transnational capital can make this ownership extremely expensive through international arbitration. You can say "no," but can you afford to pay the compensation?

Sovereignty, in this era, comes with a price tag.

Tanbreez: Another buyer

In the same geological formation, there is another deposit: Tanbreez. Its main ore is anisodactylite—a beautiful red crystal rich in rare earth elements but with extremely low uranium content. It complies with Greenland's environmental regulations.

In 2024, Tanbreez was acquired by New York-based Critical Metals. The Export-Import Bank of the United States subsequently announced its intention to provide $120 million in financing for the project.

U.S. officials stated, "The Tanbreez project is crucial to establishing a Western rare earth supply chain. We cannot allow critical minerals to continue to be monopolized by rival countries."

The United States is gradually "buying up" the most strategically valuable parts of Greenland through capital means—without formal territorial annexation.

The Greenlanders rejected one buyer, only to find another knocking at their door.

A Nassak resident said, "They say Tanbreez is 'clean.' Maybe. But I don't know if they'll care about us after the Americans have dug up what they want. Whether they're Chinese or Americans, they're only looking at the mountain, not us."

VII. Protector or plunderer?

On January 7, 2025, Donald Trump Jr.'s private jet landed at Nuuk Airport. This was not an official visit, but its symbolism was more striking than any diplomatic note.

A few weeks ago, in his victory speech, Donald Trump said, "We need to have Greenland. It's absolutely necessary for national security. I don't rule out using economic means, or even military means."

In December 2025, the Danish Defence Intelligence Agency released its annual report. The report included an unprecedented paragraph: the United States was listed as a "potential security threat"—alongside Russia and China.

This is something that has never happened before in NATO's history: a member state's intelligence agency openly listing the alliance's leaders as threats.

When protectors turn into predators, the very definition of an alliance begins to crumble.

On March 15, 2025, Nuuk witnessed the largest protest in Greenland's history. Protesters held signs that read: "We are not for sale," "No means no," and "Stop threatening us."

Greenlandic Prime Minister Mutt B. Egerd addressed Parliament: "Greenland belongs to the Greenlandic people. We don't want to be Danes or Americans. We want to be Greenlanders—Kalaallit. Our country is not a commodity to be bought and sold. We are not anyone's backyard."

Trump responded at the White House: "You know what Denmark has in Greenland? Two dog sleds. Two. They can't protect that place at all."

"Two dog sleds"—this is a sarcastic reference to the Sirius Sled Patrol. This special forces unit of the Royal Danish Navy is one of the world's most elite polar operations units. They patrol in extreme environments where even machines cannot operate, guarding the most desolate borders on Earth using the oldest method—sled dogs.

This is not just a comparison of military power, but of two attitudes toward the Arctic: one of conquest and surveillance, the other of adaptation and coexistence.

Choices for 2025

On March 11, 2025, Greenland will hold parliamentary elections. This election is being held amid great pressure on the United States, and every vote is an answer to the question of "who owns Greenland".

The result was unexpected. The party advocating radical independence lost, and the Democratic Party won—a party that advocates gradual independence, emphasizes economic stability, and maintains close ties with Denmark.

New Prime Minister Jens-Frederic Nelson, 33, is the youngest head of government in Greenland's history. After his victory, he said, "If we had to choose between the United States and Denmark, we would choose Denmark. We choose NATO. This is not because we have given up our dream of independence, but because we are unwilling to make a choice under the threat of gunfire."

A resident of Nuuk said in a street interview, "If we had to choose between the US and Denmark, we would choose Denmark. Because in Denmark's eyes, we are human beings. In the US's eyes, we are real estate."

This is a highly ironic conclusion: American pressure has only solidified Denmark's "ownership" of Greenland. The Greenlanders realized that it was better to maintain the status quo within a kingdom that respected their autonomy than to be an independent but vulnerable small country coveted by larger powers.

They temporarily laid down the banner of independence. For survival.

8. Coexisting with Ice

Politicians debate sovereignty, businessmen calculate mineral deposits. But in the heart of Greenland, another time flows.

Glaciers don't care about election results, and icebergs don't care where the boundaries are drawn. They simply move, disintegrate, and melt slowly at their own pace—a pace measured in millennia.

Ilulissat, meaning "iceberg" in Greenlandic, is Greenland's third-largest city and the gateway to the UNESCO World Heritage Site, the Ilulissat Icefjord.

At the end of the Icefjord lies the Sémeco-Cuyarego Glacier—the Northern Hemisphere's largest ice glacier by volume. It moves 40 meters per day, discharging 35 billion tons of ice into the bay annually. Some of these icebergs are tens of meters high, drifting in the bay for months, slowly melting, and eventually disappearing into the Atlantic Ocean.

One traveler wrote, "Those enormous icebergs floated on the sea like skyscrapers, like giants of nature, palaces of the gods. For the first time, I felt the insignificance of humanity in the face of nature."

At the Eqi Glacier Hut, there is no cell phone signal, no Wi-Fi, and electricity is barely maintained by solar power. At night, you can hear the breathing of the glacier—the low groans of movement within the ice sheet.

Then, with a deafening roar, a block of ice weighing hundreds of tons broke off from the glacier and tumbled into the sea. The sound wasn't one of shattering, but of release—like the earth sighing.

In Eqi, you can hear the sound of time. Each collapse is the snow from thousands of years ago completing its long journey. From the center to the edge of the ice sheet, from solid to liquid, from Greenland to the Atlantic Ocean, it eventually evaporates, condenses, and falls again.

Glaciers are the slowest cycle on Earth.

IX. The Melting Frontier

Greenland is melting. This is not a prophecy, but a fact.

Satellite data shows that the Greenland ice sheet is losing approximately 26.4-27 billion tons of ice annually—equivalent to dumping 8,900 tons of water into the ocean every second. Over the past thirty years, Greenland's contribution to global sea-level rise has increased sixfold. Scientists warn that even if humanity were to stop all carbon emissions today, the partial melting of the Greenland ice sheet is already irreversible.

The reduction of sea ice is a disaster for Inuit hunters. Seals breed on the sea ice; without sea ice, there are no seals, and traditional seal hunting methods cannot be sustained.

Sled dogs are also declining. There were once tens of thousands of Greenland sled dogs, but now fewer than 15,000 remain. When the sea ice disappears, the sled dogs will lose their purpose.

A survival technology that has lasted for nearly 10,000 years is coming to an end.

The Sémegco-Cuyarego Glacier has nearly doubled in speed over the past two decades. Scientists believe this means the glacier's base is being eroded by warmer seawater, which is loosening its grip on the bedrock. As the glacier accelerates, sea-level rise accelerates as well. This is not a linear change, but a potentially runaway feedback loop.

If the Greenland ice sheet were to completely melt—a process that could take hundreds of years or even longer—global sea levels would rise by more than seven meters. Much of Manhattan would be submerged, Shanghai would almost entirely disappear, and London, Mumbai, Jakarta, and Miami—the world's largest cities—would face annihilation.

The ice in Greenland is not just a problem for Greenland. It is a problem for all of humanity.

Epilogue: Whose Greenland?

"Who owns Greenland?" This question has been asked repeatedly over the past thousand years.

The Vikings thought they owned it. They built churches and farms and exported ivory and furs. Then they vanished, defeated by climate and time.

The Danes thought they owned it. They missioned, colonized, and "reformed" the Inuit. What they left behind was trauma and regret.

The Americans thought they could buy it. They buried nuclear waste under the ice sheet and built military bases on the Inuit's homeland. They used capital to acquire mines and used threats to test sovereignty.

But the Greenlanders said: No.

Perhaps the real answer is: no one can "own" Greenland.

This land is too ancient, too vast, too unpredictable to belong to any human ambition. It merely temporarily accommodates those who have learned to coexist with it.

The Inuit understood this principle. They didn't try to conquer the land; rather, they adapted to it. They didn't try to change the ice sheet; instead, they learned to survive on it.

In Inuit, Greenland is called "Kalaallit Nunaat"—"the land of the Greenlanders." This is not a declaration of ownership, but an expression of belonging.

Land does not belong to people. People belong to the land.

New Prime Minister Nielsen said, "We chose to remain in the Kingdom of Denmark. But this is not the end, it is the beginning. One day, we will be independent. But that will be our own choice, on our own timetable. Not because anyone forced us, but because we are ready."

A traveler wrote in front of the Eqi Glacier: "On my last night in Eqi, I sat alone outside my cabin, listening to the sound of the glacier. It was a strange feeling—both insignificant and whole. I realized I wasn't there to 'see' Greenland. I was there to 'hear' it. It was telling me something, about time, about fragility, about our species' relationship with this planet. I'm not sure I fully understood it, but I know I will always remember that sound."


Greenland. The second heart of the Earth.

It's melting. It's being fought over. It's sending us a warning.

Perhaps the question of "who owns Greenland" is flawed from the start.

The real problem is:

As glaciers melt, as great powers approach, as everything changes—

Can the Greenlanders hold onto their land?

Can humanity protect this planet?


Key figures

The Greenland ice sheet loses approximately 26.4-27 billion tons of ice annually.

If it were to melt completely, global sea levels would rise by 7.2 meters.

In 2025, the Danish intelligence agency listed the United States as a "potential security threat" for the first time.

A 2025 poll showed that 85% of Greenlandic voters opposed being annexed by the United States.

The number of Greenland sled dogs has declined by about half in the past thirty years.

As of 2026, Greenland remains an autonomous territory of the Kingdom of Denmark.

The road to independence still lies ahead.

Saturday, January 17

What happens behind that "ding" sound? — An in-depth analysis of contactless payment technology


Introduction: That magical half-second

You've definitely had this experience: when checking out at a convenience store, you take out your phone or bank card, tap it lightly on the counter, and with a "ding," the payment is complete. The whole process takes less than half a second.

But have you ever wondered what exactly happens in that fleeting half-second? What kind of "conversation" takes place between your phone and that POS terminal? How is your bank card information transmitted, verified, and authorized? Why can this seemingly casual "touch" securely complete a transaction worth thousands or even tens of thousands of yuan?

This video will take you deep into the world of contactless payments. We'll start with the most basic principles of electromagnetic physics, explore encryption technologies and security architectures, examine market trends, and culminate in cutting-edge AI-powered payment agents and biometric cards. Whether you're a tech-savvy user or an industry professional looking to stay informed, you'll find the answers you're looking for here.

Physical layer: Why is it necessary to "touch" it?

The core technology for contactless payment is NFC (Near Field Communication). The name itself reveals a key piece of information: "near field".

NFC operates in the 13.56 MHz radio frequency band, a globally recognized industrial, scientific, and medical band. However, unlike Wi-Fi or Bluetooth, which we are familiar with, NFC does not rely on long-distance electromagnetic wave propagation. It operates in a "near-field region" dominated by magnetic induction —in this region, energy is primarily stored in the magnetic field rather than radiated outwards.

What does this mean? Simply put, if someone wanted to eavesdrop on your payment information from a distance, they would need an extremely sensitive device to detect even the slightest leaks in the magnetic field. This is far more difficult than eavesdropping on Wi-Fi signals, which are specifically designed for long-distance transmission.

From a physics perspective, a frequency of 13.56 MHz corresponds to a wavelength of approximately 22 meters, and, in theory, the near-field boundary could extend to about 3.5 meters. However, in practical payment applications, the effective working range is strictly limited to within 4 centimeters. This is not a helpless compromise due to technical limitations, but rather a deliberate security design.

Why? Because the 4-centimeter limit creates a "physical intent threshold ." You must consciously bring your phone close to the terminal to trigger a payment. This dramatically reduces the risk of accidental touches or passive payments. In other words, distance itself acts as a security barrier.

So, how is data transmitted within those mere 4 centimeters? There's a clever mechanism called "load modulation ." Traditional contactless bank cards don't have built-in batteries—they're completely passive. When you bring the card close to the reader, the reader's magnetic field induces a voltage on the card's antenna. This voltage, after rectification and regulation, powers the chip on the card.

When a card wants to send data to the reader, it changes the load impedance on the antenna coil. This change is detected by the reader's antenna via mutual inductance between the two coils and is interpreted as a data signal. The whole process is like two people communicating through a shared spring—if one pulls hard, the other feels the vibration.

The situation is slightly different for smartphones. Because phones have their own batteries, they can use a technique called "active load modulation ." The phone actively drives a reverse signal, ensuring reliable communication even with a smaller antenna than specialized equipment. This is especially important for SoftPOS (Software Point of Sale) technology—when an ordinary consumer's phone becomes a point-of-sale terminal, active load modulation guarantees sufficient communication range.

Transaction process: a seven-step protocol within 0.5 seconds.

The physical layer solves the problem of "how to transmit bits," but what do these bits represent? How to ensure transaction security? This is the responsibility of the EMV (Europay, Mastercard, Visa) specification.

The EMV specification transforms simple data exchange into secure financial transactions. It defines a rigorous seven-step protocol, each step incorporating cryptographic verification and risk assessment. Industry standards require the entire process to be completed within 500 milliseconds—that's the "ding" sound you hear.

Step 1: Application Selection. When your phone enters the terminal's magnetic field range, the terminal first needs to solve one problem: you may have several cards in your wallet, which one should you use? The terminal will issue a SELECT command, requesting the phone to return a list of supported payment applications. The phone might say, "I have a Visa credit card, a Mastercard debit card, and a UnionPay card." The terminal then compares this list with its supported options and selects the one with the highest priority.

Step 2: Obtaining Processing Options. After selecting an application, a specific "kernel" takes over. Each card organization (Visa, Mastercard, UnionPay, etc.) has its own kernel that defines unique transaction logic. The terminal sends a GPO (Get Processing Options) command to the phone, and the phone returns a "map" indicating which data should be read.

Step 3: Record Reading. Following this map, the terminal reads static data stored in the phone's security chip, including the primary account (PAN), card expiration date, issuing bank public key certificate, etc. This information is prepared for subsequent authentication.

Step 4: Offline Data Authentication. This is a crucial step in preventing card cloning. The terminal verifies a dynamic digital signature generated in real time by the card's chip. Even if an attacker copies all the card's static data (card number, expiration date, etc.), they cannot forge this signature because it requires a unique private key on the chip. State-of-the-art solutions (CDA, Combined Dynamic Authentication) also bind this signature to the subsequent transaction password, ensuring that the authenticated data is the actual transaction data.

Step 5: Cardholder Verification. The system needs to confirm whether the person holding this phone is the cardholder. For small transactions (e.g., under £100), this step may be skipped entirely. For large transactions, a PIN code or biometric verification is required. In Apple Pay and Google Wallet, this verification occurs the moment you unlock your phone—your Face ID or fingerprint serves as proof of your identity. This method is called CDCVM (Consumer Device Cardholder Verification Method).

Step 6: Terminal Risk Management. The terminal assesses transaction risk in accordance with internal rules. Does the amount exceed the limit? Is this card on a blocklist? Is the network connection regular? Based on these judgments, the terminal decides whether to authorize online (contact the bank) or approve offline.

Step 7: Password Generation. Finally, and most crucially, the card uses a unique symmetric key derived from the issuing bank's master key, combined with parameters such as the transaction amount, date, and a random number, to generate an Application Request Password (ARQC). This password acts like a unique digital fingerprint—the issuing bank can verify it using the same mathematical methods to confirm that it is a genuine card, the transaction details have not been tampered with, and the transaction occurred at the claimed time and place.

Seven steps, 500 milliseconds, dozens of encryption operations—this is the story behind the "ding" sound.

Bank cards and mobile wallets: the same technology, different philosophies
Before delving into mobile wallets, we shouldn't forget the "natives" of contactless payments—contactless bank cards. In fact, the bank card with the contactless payment logo (four curved lines) in your wallet uses the same NFC technology and EMV protocol as Apple Pay and Google Wallet on your phone. However, they have subtle but essential differences in their design philosophies.

Bank cards: Simplicity equals reliability

The most significant advantage of contactless bank cards is that they don't rely on batteries or operating systems. They have no battery, don't need charging, and don't depend on an operating system—as long as the card is physically intact. The terminal is working correctly, and transactions can be made. The moment you bring the card close to the reader, the reader's magnetic field powers the card's chip, and the transaction begins immediately. This passive design means that while you might not be able to enter the subway if your phone is out of power, your bank card is less likely to fail at the device level.

From a security perspective, bank card keys are stored in a secure chip inside the card, essentially the same technology as the Secure Element in a mobile phone. From the moment the chip leaves the factory, it encapsulates the private key written by the issuing bank. These keys are typically designed to be non-exportable, with the security goal of making copying or extraction extremely costly. Even if the card is stolen, it is tough for attackers to copy the keys within the chip for cloning.

Hierarchical logic for cardholder verification

However, bank cards also have a significant "inconvenience": they don't know who you are.
Mobile wallets can verify "whoever is holding the phone is the owner" through Face ID or fingerprint, but bank cards lack this capability. Therefore, bank cards employ a tiered verification strategy based on the amount held:

Small transactions (PIN-free payments): Many countries and regions have a limit on PIN-free payments (such as the current limit of £100 in the UK). Transactions below this amount can usually be completed with a simple tap. However, whether PIN verification is triggered is also affected by the card issuer's risk control rules. For example, verification may still be required after the cumulative amount or number of consecutive transactions reaches a threshold.

Large transactions (PIN verification): When the limit is exceeded, the terminal will prompt you to enter a 4-to 6-digit PIN. This is slower than Face ID, but it is more universal—any terminal supports it.

Cumulative spending limit protection: Even if each transaction is within the PIN-free range, the system will still require a PIN after multiple consecutive transactions to prevent the card from being repeatedly stolen and used fraudulently.

It's worth noting that the UK's FCA has announced that, from March 2026, it will give card issuers greater flexibility to set contactless payment limits. This means that future limits may vary from institution to institution, and may even allow users to set their own limits. However, this is not an "automatic removal of limits"—most institutions are expected to maintain their current caps in the short term. Coupled with the rise of biometric payment cards (cards with built-in fingerprint sensors), large-amount contactless payments will become more common in the future.

This design reflects a pragmatic trade-off: speed is prioritized for small transactions, while security is prioritized for large transactions.

Where is the "upgrade" for mobile wallets?

If bank cards are secure enough, why use a mobile wallet?

The answer lies in three aspects:

Tokenization protection: When you add a bank card to Apple Pay, your phone stores a "Device Account Number" instead of the actual card number (PAN). Even if this token is compromised, attackers cannot use it to shop on other devices or online. Physical bank card numbers are fixed, making them much more vulnerable if compromised.

Biometric integration: Before each payment, your phone has already verified your identity via Face ID or fingerprint. This means that mobile wallets can skip PIN entry while providing higher security than "no verification"—the best of both worlds.

Centralized management: If you lose your phone, you can remotely freeze all the cards linked to it; if you lose your bank card, you need to report each card as lost individually.
Their common foundation

Whether it's a bank card or a mobile wallet, the moment they "touch" the terminal, they all execute the same EMV seven-step protocol: application selection, obtaining processing options, record reading, offline data authentication, cardholder verification, terminal risk management, and password generation. Although the terminal can infer whether the other party is a physical card or a mobile wallet based on specific data characteristics (such as AID, CVM results, etc.), regardless of the form, it will complete the encrypted communication using the same standardized EMV process.

This is precisely the elegance of NFC payments: the same infrastructure serves both the simplest plastic cards and the most advanced smartphones. You can choose the most suitable tool for the situation—bank cards are always reliable, and smartphones are more intelligent.

Security Architecture: Apple and Google's Different Choices

When EMV credentials were transferred from plastic cards to mobile phones, a fundamental question arose: where should the encryption keys be stored?

This issue has given rise to two drastically different security philosophies. Apple and Samsung opted for the Secure Element (SE) model, while Google pursued Host Card Emulation (HCE). Each choice has its advantages and disadvantages, profoundly impacting the security landscape of mobile payments.

Security Elements: Bank-Grade Hardware Fortress

The Secure Element is a tamper-resistant chip embedded in iPhones and Samsung phones. It is completely isolated from the central processor and operating system — it has its own secure operating system, independent memory, and a cryptographic coprocessor. You can think of it as a miniature vault installed in your phone.

When you add a bank card to Apple Pay, the bank generates a unique Device Account Number and writes it directly to this secure chip. From that moment on, the iOS system—not even Apple itself—cannot read this key. When you make a payment, iOS can only "request" the secure element to sign the transaction, then receive the cryptographic authorization signal returned.

The security advantage of this architecture is absolute. Even if your iPhone is jailbroken or malware gains root privileges, attackers cannot extract keys from the secure element. This is why Apple Pay is considered the most secure solution for mobile payments.

Host card emulation: The cost of flexibility

Google faced a different dilemma. In early Android phones, the Secure Element was often embedded in the SIM card and controlled by the mobile operator. Google didn't want to be controlled by the operator, so it took a different approach: HCE technology allowed the NFC controller to route data directly to the Android central operating system, bypassing the Secure Element.

However, this presents a fundamental security challenge: the Android operating system is a general-purpose computing environment that is theoretically vulnerable to malware. Storing long-term keys in such an environment is dangerous.

Google's solution is tokenization and time-limited keys (LUKs). Google Wallet doesn't store your real card number; instead, it stores a series of "one-time" keys, each valid only for a short period or a limited number of transactions. When these keys are exhausted or expire, the phone needs to connect to the Google cloud to obtain new ones.

The advantage of this design is its flexibility and openness, without relying on specific hardware. However, the trade-off is that payments will fail if your phone is offline for too long, and malware with Android root privileges could intercept these temporary keys.

To compensate for this weakness, modern Android devices typically use a Trusted Execution Environment (TEE) —a physically isolated region within the central processor—to handle HCE logic. This is a compromise between pure software and complete hardware isolation.

The choice between these two models reflects the perpetual tension between security and openness. Apple opted for a "closed but unbreakable" approach, while Google chose an "open approach requiring additional protection ." For the average user, both are secure enough—the genuine concern lies in the new attack methods discussed in the next section.

Threats and Protection: An Arms Race Between Security Architects and Criminal Groups
As more and more funds flow through NFC channels, attack methods are also constantly evolving. The "Ghost Tap" attack that emerged at the end of 2024 raised the industry's level of vigilance to a new level.

Relay attack: turning 4 centimeters into 4,000 kilometers

Remember when we said that the NFC's 4-centimeter working distance is a security barrier? The purpose of a relay attack is to break through this barrier.

The attackers used two devices: a "mouse" device placed near the victim's bank card or mobile phone, and a "proxy" device placed near a remote payment terminal. These two devices were connected via a high-speed network (Wi-Fi or 5G) to relay ISO 14443 commands in real time. From the payment terminal's perspective, it "saw" a bank card right in front of it—even though the actual card might be thousands of miles away.

Ghost Payment: A More Covert Evolution

"Ghost payments" are an upgraded version of relay attacks. Attackers first steal victims' bank card credentials through phishing or malware, then link these credentials to Google Pay or Apple Pay on their own devices. Because the transactions originate from a "legitimate" wallet and generate a valid ARQC password, traditional fraud detection systems often fail to detect the anomaly.

Researchers have discovered that in 2024, more than 760 malicious Android applications exploited NFC permissions to launch attacks. These applications can simulate card readers to steal data from physical cards, simulate bank cards to make unauthorized payments, and even trick users into entering PIN codes by overlaying them onto the interface.

Distance Limiting Protocol: Combating Fraud with the Laws of Physics

The industry's response is a distance-limiting protocol. This protocol measures the round-trip time (RTT) of a signal with nanosecond precision. Since the speed of light is constant, any signal relayed through the network introduces additional latency—even a few milliseconds—which can cause the RTT to exceed the threshold, triggering a transaction rejection.

Implementing this protocol requires adding new hardware capabilities to the device and card/wallet. These upgrades are being rolled out gradually throughout the 2025-2026 update cycle. Meanwhile, AI-driven behavioral analytics (such as device fingerprint recognition and detection of impossible geographic movement speeds) are becoming an essential supplementary defense.

Security is never a one-time solution. It is a never-ending arms race—every evolution of attack methods drives the upgrading of defense technologies.

Public Transportation: A Touchstone for NFC Technology

The "tap-to-pay" feature at convenience stores is an everyday application of NFC payments; public transportation systems represent its ultimate stress test.
Imagine subway turnstiles during rush hour: processing 40 to 50 people per minute. This means the response time for each "tap" must be under 300 milliseconds—more stringent than the 500-millisecond standard in retail scenarios. Subway network environments are often unstable, requiring the system to support batch clearing after offline transactions. Adding to the complexity, unlike supermarkets, the system doesn't know the final fare when a passenger enters—you might ride one stop or all the way to the final destination. This necessitates a "swipe card upon entry/swipe card upon exit" mechanism to calculate the actual journey.

It is precisely these stringent requirements that make transportation systems a frontier for NFC technology innovation.

Comparison of major global transportation payment systems

system

area

Technical features

Innovation

Oyster + Contactless

London

Open EMV and proprietary Oyster card in parallel

The first concept of "ticket price cap"

Suica / PASMO

Japan

FeliCa (Sony proprietary agreement)

0.1-second ultra-fast response; supports payment even when the device is powered off.

Octopus

Hongkong

FeliCa variant

From transportation to convenience stores and parking lots

SimplyGo

Singapore

Migrating from CEPAS to Open EMV

Complete the full open payment transformation by 2024

OMNY

New York

Purely open EMV

No dedicated card, relies entirely on bank cards/mobile wallets


The Metropolitan Transportation Authority (MTA)'s OMNY system represents the latest development. It completely abandons proprietary cards, accepting only open bank cards and mobile wallets. Even more innovative is its "fare cap" mechanism: for example, after 12 swipes within a week, the remaining trips are free. This logic isn't stored on the card; it's calculated in the backend based on your unique payment token—the system "recognizes" you without requiring you to register an account.

The traditional MetroCard ceased sales on December 31, 2025. On January 4, 2026, Westchester County's Bee-Line transit system also fully adopted OMNY, creating a seamless payment zone in New York City and its northern suburbs.

It's worth noting Japan's Suica/PASMO system. It uses Sony's FeliCa protocol—not strictly part of the ISO 14443 standard—but offers an astonishing 0.1-second response time. More importantly, it supports payments even when the device is powered off.

This raises a question that many people are concerned about: If your phone is out of battery, can you still use your card to enter the subway?

Payment when powered off: When the battery is depleted

The answer is: It depends on the device you are using and the situation.
iPhone: Some models are available.

Starting with iOS 12, Apple introduced the "Power Reserve" feature. When your iPhone battery is depleted or you manually shut down your iPhone, your Express Transit card can still be used for up to 5 hours.

How is this possible? Remember the Safety Element? It's a separate chip with its own low-power circuitry and small capacitors. When the central system is shut down, the Safety Element can operate independently—like a miniature "backup power supply."

Please note: This feature is limited to transit cards (such as Suica, OMNY, Beijing/Shanghai transit cards). Regular credit card payments—such as buying items at a convenience store—require Face ID verification, which cannot be performed when the device is powered off. You will need to enable the "Express Transit Card" mode in your settings beforehand.

Android: Basically not working

Because the HCE architecture relies on the phone's central operating system, Google Wallet will not work when the phone is powered off. A few devices using hardware security elements (such as Samsung Pay on some Samsung phones) may offer limited support, but this is not the case, and Google does not officially promise this feature.

Explanation of physical principles

Traditional plastic bank cards are entirely passive—the reader's magnetic field powers the chip, so it's "always online." In contrast, a phone's NFC chip requires an active response, which generates power. Apple's solution is to integrate a separate low-power circuit into the secure element, specifically designed for transportation scenarios—because being unable to enter a subway station is a real "emergency," while not being able to buy coffee is a minor inconvenience.

So if you're an iPhone user and frequently take the subway, remember to enable the Express Transit feature. It might save your life on a morning when your battery dies.
Market Structure: Duopoly and Regional Differences

In developed markets, competition in digital wallets has settled mainly into a duopoly between Apple and Google. However, these two giants are not on equal footing.

As of 2025, Apple Pay had approximately 64 million users in the United States, accounting for 49% of the mobile wallet market. Google Wallet, on the other hand, had approximately 35 million users, with a 30% market share. On the surface, the difference doesn't seem significant. However, what's truly astonishing is the difference in transaction activity: as of 2020, Apple Pay accounted for 92% of mobile debit wallet transactions in the United States.

What does this mean? While Google Wallet does have users, their usage frequency is far lower than that of Apple Pay users. iPhone users consider Apple Pay their native payment tool and rely on it extensively in their daily lives. Android users, on the other hand, have multiple payment options (Google Pay, Alipay, WeChat Pay, Samsung Pay, etc.), leading to fragmented usage.

The generational gap is even more pronounced. 73% of Gen Z digital wallet users use Apple Pay weekly. In contrast, less than 15% of Baby Boomers use digital wallets weekly—they prefer physical cards. This generational gap means that as Gen Z's purchasing power grows, the shift to "purely digital" payment experiences will accelerate.
The Chinese Market: The Battle Between QR Codes and NFC

China's payment landscape is an interesting "exception." However, NFC technology accounts for 68% of the global contactless payment market share; QR code payments still dominate in China.

Why? This isn't a technological choice, but rather a result of historical circumstances. When Alipay and WeChat Pay experienced explosive growth between 2013 and 2014, most Chinese merchants lacked NFC terminals, and most consumers' phones didn't support NFC. QR codes offered a "zero-barrier" solution: merchants needed only to print a QR code image, and consumers only required a phone capable of taking photos.

Once established, this first-mover advantage is difficult to shake. Although UnionPay's QuickPass (based on NFC) offers stronger security and faster speeds, its market share remains limited amid the deeply entrenched Alipay/WeChat Pay ecosystem.

However, the advancement of the digital yuan may change this landscape. The digital yuan supports offline payments—transactions can be completed even in situations with extremely weak network signals—which is precisely the inherent advantage of NFC. With the expansion of the central bank's digital currency pilot program, NFC's application in China may experience a second spring.

This case illustrates that the adoption of payment technology depends not only on the quality of the technology itself, but also on the existing ecosystem, user habits, and historical opportunities. Sometimes, "good enough" is more important than "better."

Merchant Perspective: Costs, Challenges, and Opportunities

For consumers, "tap" is convenient. For merchants, it's a complex cost-benefit calculation.
A common misconception is that "Apple Pay is more expensive for merchants." In reality, neither Apple nor Google charges merchants directly. Their revenue comes from a share of the card issuer's exchange fees. Merchants still pay the standard card processing fee.

So why do merchants find Apple Pay expensive? The reason lies in the card type. Users tend to link high-reward credit cards to their digital wallets. These cards themselves have significantly higher exchange fees than regular debit cards (US credit card exchange fees are 1.5%-2.5%, while debit card exchange fees are only 0.05% + $0.21). Therefore, the cost is borne by the card itself, not by NFC technology.

For small businesses, the real obstacle is the cost of hardware. For example, based on publicly available pricing in the US in 2025, a traditional Verifone or Ingenico terminal costs $250-$500. A complete POS system (such as Clover Station) could cost $1,000-$3,000. This is a significant expense for a small street-side shop.

SoftPOS: A Disruptive Solution

The most disruptive trend in 2025 will be SoftPOS (Software Point of Sale). This technology allows merchants to download an app on a regular consumer smartphone and use the phone's NFC chip to receive payments directly.

What does this mean? Hardware capital expenditure drops to zero. A food delivery rider, a pop-up shop owner, a small vendor in an emerging market—all you need is an NFC-enabled phone to accept bank card payments. The global SoftPOS market was already worth over $420 million in 2025 and is projected to grow to $2.93 billion by 2035.

Of course, the security of SoftPOS is a concern. It relies on software authentication and "white-box encryption" to protect the PIN code entered on the consumer-grade mobile phone screen. The PCI MPoC standard has set strict authentication requirements for this. However, compared with professional terminals, SoftPOS still faces a higher risk of application-level malware.

Bottlenecks of legacy systems

While front-end "tap-to-pay" transactions are lightning-fast, many large retailers' backend systems lag. Many systems are designed for end-of-day bulk settlements and struggle to meet modern demands such as real-time membership points and instant fraud detection. Upgrading these systems requires deep integration with the payment kernel—a high-risk, high-cost undertaking for retailers using 15-year-old software. The result is a fragmented user experience: payments can be completed with a tap, but membership cards may still require barcode scanning.

Future Outlook: From Payments to Invisible Interactions

Looking ahead to 2026 and beyond, the act of "paying" itself may become increasingly "invisible".

Biometric payment cards are emerging. These cards embed fingerprint sensors directly and are self-powered by the magnetic field energy of the card reader. Fingerprint verification is completed on the card, and once successful, the card sends a "verified" signal to the terminal, allowing large transactions without a PIN code. This means that contactless payments are no longer subject to spending limits (the UK will remove the £100 cap on March 19, 2026). Market forecasts predict that this sector will grow from $290 million in 2024 to $5.7 billion in 2030, representing an average annual growth rate of 64%.

AI-powered proxy payments represent an even more imaginative direction. Imagine this: your personal AI assistant negotiates purchases on your behalf (such as booking the cheapest flight or ordering coffee), then automatically executes the payment using tokenized credentials. You don't even need to "touch" anything—the AI does everything for you.

But this also raises new trust issues: How to distinguish between user-initiated payments and payments initiated by AI agents? How to ensure that AI operates within predefined spending limits? How should regulators respond when non-fintech companies (Apple, Google) provide financial services through AI agents? These questions are becoming new challenges for policymakers.

Value-added services (VAS) redefine the point of sale from a simple transaction checkpoint into a data-rich interactive node. Apple VAS and Google Smart Tap protocols allow a single tap to complete payment, loyalty points, and receipts simultaneously. Merchants can push personalized offers in real time at the moment of payment, building highly accurate user profiles. Of course, this also raises privacy concerns—every tap leaves a data trail.

Conclusion: The eternal tension between convenience and security

From magnetic stripe cards to chip cards, and from chip cards to "tap to pay," the evolution of payment technology has always been moving in one direction: faster, more convenient, and more frictionless.

But convenience never comes free. New security challenges accompany every technological advancement. NFC's 4-centimeter operating distance is a barrier, but relay attacks attempt to bypass it. Secure Elements offer bank-grade protection but limit openness. HCE brings flexibility but expands the attack surface.

This tension will never disappear. It drives the evolution of technology—from distance-limiting protocols to AI-driven fraud detection, from biometric cards to quantum-secure encryption (addressing the threat posed by future quantum computers to existing encryption systems).

As consumers, all we can do is understand the principles and limitations of these technologies. The next time you tap your phone on the checkout counter, you'll know that behind that "ding" sound lies a sophisticated collaboration of electromagnetic physics, cryptographic mathematics, financial protocols, and security architecture—and a never-ending game of offense and defense.

And this is the story of modern payments.

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