Why is China becoming the world's largest mobile payment market?

The United Nations-owned "Better Than Cash Alliance" recently released a report that, with the help of Alipay and WeChat payment, the mobile payment market in China reached 2.9 trillion US dollars in 2016, a 20-fold increase in the past four years. The report believes that China's mobile payments are changing the world.

Take the recent May Day holiday as an example. According to the data released by Alipay, there are over 42 million people who use Alipay to make “no cash” travel during the holiday period. The number of users using Alipay overseas is 3 times that of the same period last year. . WeChat said that WeChat payment has been registered in 12 countries and regions, and supports 11 currencies for direct settlement.

Even UnionPay, which is obviously lagging behind in the field of mobile payment, said that during the May Day holiday, its total network transactions amounted to 512.3 billion yuan, a year-on-year increase of 38%. The amount of non-receiving financial IC cards increased by 10 times year-on-year. UnionPay cloud flashed all kinds of mobile phones Pay. Business growth was significant and transaction value increased by 180% year-on-year.

China has become the world's largest mobile payment market, and Shanghai is also known as China's financial center; mobile payment has been rapidly popularized in cities such as Shanghai. At the upcoming 2017 World Mobile Congress - Shanghai (MWCS), the organizers will set up a special exhibition area, and the future retail experience area with Cognizant will present a unique future shopping experience. Participants are free to choose the products they want and walk. You can automatically make a payment at the door of the store, eliminating the hassle of queuing and checking out.

In addition, during the 2017 MWCS, the Digital Consumer Summit will also be held. Ben Gilbey, senior vice president of digital payments and laboratories for Asia Pacific, one of the world's largest payment companies, will present a presentation in the digital consumer arena; US digital payment giant Paypal will also serve as a GSMA innovation city silver partner To attend a meeting.

China has become the world's largest mobile payment market

A survey of about 2,000 Millennials (born 1981-1998) by LendEdu, a US consumer finance website, found that only about 14% of people regularly use mobile payment software, while 35% said they have never used mobile. Pay.

According to the latest report released by the China Payment and Clearing Association, from the global comparable perspective, China's non-cash payment growth rate is more than four times the global average speed. Compared with the United States, the world's largest financial power, in the field of mobile payments, China Mobile's payment in 2016 was about 50 times that of the US.

McKinsey said that by 2025, the shift in payment methods will boost developing countries' GDP by 6%, an increase of $3.7 trillion and 95 million jobs. The "Better Than Cash Alliance" report titled "The Development of China's Social Network, E-Commerce Platform and Digital Payment Ecosystem - and Its Impact on Other Countries" points to digital payment methods based on existing platforms and networks. Not only does it allow people to enjoy a wider range of digital financial services, but it also expands the opportunities for financial inclusion and economic development in China and neighboring countries.

Three major reasons to promote the rapid development of China Mobile Payment

Nowadays in China's major cities and even towns and villages, payment by scanning QR code has become the most common form of payment. Even jokes say that people who don't know how to pay for QR codes are even difficult to beg. Indeed, the convenient way of scanning code payment has become an effective catalyst for promoting China's mobile payment into the rapid development channel. The promotion and subsidy of WeChat and Alipay for online and offline payments is also an important means to attract mobile payment for all ages.

In just a few years, we have become accustomed to using Alipay and WeChat to make mobile payments in almost all scenarios, which is inseparable from the rapid popularity of smartphones and the improvement of China's 4G network coverage. More and more people are used to going out without cash. The so-called "mobile phone I have, go and leave." The dependence of Chinese on mobile payment has even spread to overseas, and the pace of China's mobile payment giants to seize the international market is also accelerating.

At the same time, it is very important that China has a relatively loose regulatory environment at the beginning of mobile payment development. However, the rapid development of the industry has also brought many problems and challenges to the supervision. In fact, since the second half of 2015, the central bank has no longer issued new licenses.

In addition, compared with the United States, where credit card popularity is very high, the rapid development of China's mobile payment has also benefited from the fact that China has almost directly crossed the credit card era. In particular, the younger generation has a very high acceptance of mobile payments, and the “no-cash society” is becoming possible in this generation.

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