A large number of Chinese consumers make payments via their smartphones. They have had a substantial impact on China’s e commerce economy. Essentially, thanks to its convenience and ease of use, mobile money transaction is no longer a novelty.Īt the same time, mobile payment systems in China offer more than convenience and ease of use. Whether you are paying for your taxi ride, a meal in a restaurant, or buying goods from a street vendor, today, almost every transaction in China is via mobile payment. What are the Benefits of a Cashless System in China? However, as the market continues to expand, these services are sure to improve. Whereas the market leaders promote and work on solutions to pay without an internet connection, this is not ready for release yet. Nonetheless, the ease of mobile transactions via QR payments is a large factor in the fast adoption of mobile transactions in China. The only downside here is that in certain parts of China, internet connection is either unstable or very poor. On the other hand, QR payments just require an internet connection. For example, Apple Pay uses this technology. This requires NFC technology-enabled phones. This is the opposite of Near Field Communication (NFC). The best thing about QR code-enabled payments is that they can work on ANY smartphone. The second method is more popular among larger businesses that can afford to invest in a QR scanner. This account links to the app via their bank card. When the QR scanner/reader recognizes the buyer, the merchant enters the amount to be deducted from the buyer’s account. A unique QR code is generated for each user once they sign up for the mobile payment platform. The merchant scans the buyer’s QR code which will be displayed on the smartphone. In the second scenario, the roles are switched.This method is popular with smaller businesses. Then, the buyer can input the amount and confirm the transaction to complete the payment. First, the payment app recognizes the vendor using the app and the smartphone’s camera capability. It is often printed and placed on the cash register. The person making the payment has to scan the merchant’s QR code.Depending on the merchant or business, QR codes can work in two ways: How Chinese Mobile Payment Systems WorkĮxcept for very large sums, the providers do NOT charge users for mobile transactions.Ĭhinese digital payment systems use Quick Response (QR) codes to enable transactions from one party to another. Keep in mind that JD.com and JD Worldwide ( e commerce platforms) also partly belong to Tencent. However, they are still commonly used in China.įor example, Union Mobile Pay, 1qianbao, and JD Bank Mobile Wallet. The following providers divide a market share of 7% between them. In fact, WeChat’s payment service serves them throughout the many functionalities of the app. According to its market share, WeChat Pay has more than 900 million monthly active users. So, it is not surprising that its mobile payment system is one of the most widely used among Chinese consumers. With more than 1.1 billion monthly active users, WeChat is the most popular social media platform in China. As the name tells, it is available through the Chinese social media super-app – WeChat. Tencent’s WeChat Pay entered the market almost 10 years later, in 2013. Today, AliPay serves a record-breaking 1.2 billion users around the world. Initially, it was an escrow service to facilitate transactions between sellers and buyers on Taobao, Alibaba’s C2C e commerce platform. This revolutionized the payment landscape in the Middle Kingdom. In 2004, they launched AliPay as the first Chinese mobile payment platform. AliPayĪlibaba’s affiliate Ant Financial Services is China’s largest e-commerce network. The second is WeChat Pay with a 39% market share. With a 54% market share, AliPay is leading the way. Two key mobile payment systems dominate the market today. The growth of mobile payment systems really only started after 2014. Finally, we reveal what a cashless society means for the world moving forward. We present the most commonly used mobile payment platforms. We at China Gravy, the social marketing agency for China, you trust, have all the details. They will scan, swipe, and tap at the point of sale – online or offline.įind out all you need to know about mobile payment in China. So much so that by 2021, 79% of smartphone users in China will not use cash anymore. Actually, the Middle Kingdom is well on its way to becoming a cashless society. To begin with, when it comes to mobile cash transactions, China is light-years ahead of other countries. Their transactions total more than 17 billion USD per year, a rapidly growing trend. Today, there are around 900 million unique mobile payment users in China. To be precise, the fintech industry is booming. Mobile China Payment Systems are more popular than ever.
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