China Mobile is close to buying a stake in Shanghai Pudong Development Bank in a deal that could spur adoption of the carrier’s mobile payment system across the mainland, according to South China Morning Post.

Chairman Wang Jianzhou has confirmed that negotiations for the acquisition and potential strategic co-operation with the bank are nearing completion. Wang said: “We need a dedicated partner in the banking field to help us roll out the mobile payment business.”

The world’s largest wireless network operator with 522.3 million subscribers as of December, is expected to invest up to 40 billion yuan (HK$45.42 billion) to obtain roughly a 20 per cent shareholding in the mid-sized Shanghai bank, according to a report published by brokerage China International Capital Corp. It estimated China Mobile could generate about 400 million yuan in interest income each year, assuming 200 million of its subscribers each had a balance of 100 yuan in their mobile payment account.

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