China UnionPay is currently developing handsets with mobile payment features and is planning to release 1,000 handsets in the second half of 2007 in Shanghai's Pudong district, reports Shanghai Evening Post quoting China UnionPay assistant to the president Yan Qiang. UnionPay's mobile payment service makes use of a special SIM card that must be inserted into the handsets that can be read by special POS (point of sale) machines. China UnionPay will install several hundred of the special POS machines in Shanghai.