Mo­bile pay­ment providers of­fer op­por­tu­ni­ties to other coun­tries

China Daily (Hong Kong) - - COMMENT - THIRD-PARTY MO­BILE PAY­MENTS

have be­come a way of life for many Chi­nese res­i­dents, and China will move fur­ther ahead in this re­gard de­spite the chal­lenges, Bai Ming, deputy di­rec­tor of the Com­merce Min­istry’s re­search in­sti­tute was quoted as say­ing on hai­wainet.cn:

Last year China’s third-party mo­bile pay­ments re­port­edly reached 38 trillion yuan ($5.5 trillion), nearly half of the coun­try’s GDP last year. A re­port by the Bet­ter Than Cash Al­liance re­leased in April sug­gests that Chi­nese mo­bile pay­ment plat­forms Ali­pay and WeChat Pay, which en­abled $2.9 trillion in dig­i­tal pay­ments, have not just granted Chi­nese peo­ple wider ac­cess to dig­i­tal fi­nan­cial ser­vices but also cre­ated more busi­ness op­por­tu­ni­ties world­wide.

A re­port is­sued by the McKin­sey Global In­sti­tute pre­dicted that by 2025 mo­bile pay­ments would in­crease the GDP of de­vel­op­ing coun­tries by 6 per­cent while cre­at­ing 95 mil­lion jobs.

Be­ing an e-com­merce fore­run­ner, China is ex­pected to ben­e­fit from its suc­cess­ful pro­mo­tion of dig­i­tal pay­ments, par­tic­u­larly when it comes to the in­ter­na­tion­al­iza­tion of the ren­minbi, with more coun­tries par­tak­ing in cross-bor­der e-com­merce and adopt­ing third-party pay­ment means.

While mo­bile pay­ment tech­nolo­gies mat­ter a lot to the thriv­ing e-com­merce and re­tail­ing busi­nesses in

the de­vel­op­ing world, West­ern economies ap­pear to be not as keen to de­velop them. Un­like many de­vel­op­ing coun­tries where ma­ture, so­phis­ti­cated fi­nan­cial ser­vices are not avail­able, de­vel­oped coun­tries have cul­ti­vated sev­eral pay­ment meth­ods that can meet most of the public de­mands.

There are thus chal­lenges fac­ing Chi­nese mo­bile pay­ment plat­forms ey­ing over­seas mar­kets. Those who have be­come ac­cus­tomed to credit card pay­ments may find it dif­fi­cult to trust a for­eign dig­i­tal ser­vice. Lo­cal com­peti­tors, too, could be tempted to call for stricter scru­tiny on the in­tro­duc­tion of Chi­nese mo­bile pay­ment sys­tems, let alone the al­ready high tech­no­log­i­cal bar­ri­ers.

De­spite that, the prospects for China’s mo­bile pay­ment providers in the West will be promis­ing once those con­sumers get a bet­ter un­der­stand­ing of the third-party mo­bile pay­ment ser­vices. Nor are they likely to shut the door on the in­flu­ence of Chi­nese mo­bile pay­ment tech­nolo­gies, which are among the best world­wide.

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