For Chi­nese users, new global stan­dard for QR codes is good news

China Daily (Hong Kong) - - BUSINESS - By WU YIYAO in Shang­hai wuyiyao@chi­nadaily.com.cn See page 18

On July 15, EMVCo, an as­so­ci­a­tion facilitating stan­dards in world­wide in­ter­op­er­abil­ity and ac­cep­tance of se­cure pay­ment trans­ac­tions, re­leased QR code spec­i­fi­ca­tion for pay­ment sys­tems, pro­vid­ing one of the first glob­ally in­ter­op­er­a­ble tech­ni­cal so­lu­tion for QR code pay­ment.

For Zhang Weili, 25, a sales rep­re­sen­ta­tive with Shang­haibased Ailin Bev­er­age Trade, this is good news as QR code pay­ments will be pop­u­lar­ized in other mar­kets out­side China.

“I am most com­fort­able with QR code pay­ment, and I was a lit­tle bit sur­prised when I found that QR code pay­ments, which have been dom­i­nat­ing the mo­bile pay­ment mar­ket in China, are not pop­u­lar in some coun­tries,” said Zhang.

Cash­less pay­ments have been grow­ing sig­nif­i­cantly glob­ally, but mar­kets are highly di­ver­si­fied, said Ben Gilbey, head of dig­i­tal pay­ment and labs, Asia Pa­cific, Master­card.

In China, QR code is pop­u­lar and has be­come dom­i­nant in the dig­i­tal pay­ment sec­tor. It is the pre­ferred method of both mer­chants and con­sumers, on­line and off­line.

“But in other coun­tries we see con­tact­less pay­ments are tak­ing the lead, par­tic­u­larly in Asia Pa­cific and (in some mar­kets out­side the Chi­nese main­land, such as) Hong Kong. Sam­sung Pay, Ap­ple Pay, An­droid Pay are quite suc­cess­ful in mar­kets that fa­vor con­tact­less NFC (near field com­mu­ni­ca­tion) pay­ment,” said Gilbey.

Pay­ment tech­nol­ogy providers are now us­ing ar­ti­fi­cial sec­onds in­tel­li­gence, hu­man-ma­chine in­ter­ac­tions, mar­ket­ing based on data of con­sump­tion and pay­ment be­hav­ior, ac­cord­ing to Gilbey.

Master­card col­lab­o­rated with Softbank and Piz­za­Hut to launch a ro­bot called “Pep­per”, which helps con­sumers to place or­ders, rec­om­mends dishes from the menu, and ac­cepts con­sumers’ pay­ments.

“Pep­per” is likely to be used in other ser­vice sec­tors such as air­lines.

Paul J Walsh, se­nior vi­cepres­i­dent, Visa Plat­form Strat­egy & In­no­va­tion, said in a re­cent speech that Visa hopes to gen­er­ate new busi­ness mod­els from mas­sive con­sump­tion data and pre­dict con­sumer be­hav­ior and trends. It has plans to pro­vide bet­ter, faster and more con­ve­nient mo­bile pay­ment ser­vices.

For ex­am­ple, mar­ket play­ers are an­a­lyz­ing data like the time taken to buy a cup of cof­fee, from lin­ing up, pay­ment, wait­ing for the cof­fee to be brewed to sip­ping from the cup. On av­er­age, it could be about 15 min­utes. But in the fu­ture, cof­feeshops may es­ti­mate which fla­vors are go­ing to be or­dered at a given time, so the wait­ing time for one’s fa­vorite cof­fee could be as short as 15 sec­onds.

China’s Union­Pay has been ex­plor­ing con­nect­ing pub­lic ser­vices and pay­ment meth- ods, such as en­abling card­hold­ers to book ap­point­ments with physi­cians through its pay­ment app, and track­ing food safety in­for­ma­tion, to “add value to con­sumers and to mer­chants and pub­lic ser­vice providers”.

China has been mak­ing a se­ries of moves in open­ing up the bank card clear­ing mar­ket to in­ter­na­tional com­pa­nies, in­clud­ing Visa, Master­card, Amer­i­can Ex­press and JCB, mean­ing that China’s pay­ment mar­ket will see in­creas­ing com­pe­ti­tion in the near fu­ture.

the likely wait­ing time for one’s fa­vorite cof­fee if mo­bile pay­ment ser­vices be­come much faster in the fu­ture

is in­creas­ing its vis­i­bil­ity with ads near tax-free shops and scenic spots at tourist des­ti­na­tions like Ja­pan and the United States, that are pop­u­lar with Chi­nese trav­el­ers.

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