Chinese Mobile Payment Leads The World

Approximately 1500 years ago,China invented paper money.In the seventh century AD,merchants in the Tang dynasty began to use paper receipt to settle accounts and give metal coins to others for safekeeping.By tenth century,the Song dynasty court started to issue paper money.This time,it is also China that has brought monetary reform to the world.China’s rapid development in mobile payment market makes it very possible to become the first country all around the world to establish a cashless society.

Chinese people are reasonable to feel proud of China’s success in the new economy and cutting-edge technology.China’s mobile payment technology goes ahead of the United States and Europe, whose progress towards a "cashless society" is exceeded that of most developed western economies. Chinese consumers have been accustomed to using mobile phone to pay for small commodities. Alipay and WeChat pay have become a symbol of Chinese innovation.

Under the circumstance that both consumers and businesses in developing countries are hoping to achieve cashless payment, mobile phone two-dimensional codes are beating Apple payments and payment services of other brands. China has provided an effective model for this kind of transformation, which is likely to be followed.

The cashless payment methods such as mobile payment have been developed in full swing in China, which benefits from three aspects of development. One is the advancement of mobile Internet technology including third party payments; two is the mobile payment habits of young consumer groups; three is related to the urbanization process. The urban population is relatively dense, thence there are relatively more face-to-face deals. In this process, mobile payment provides a great deal of convenience and helps to reduce occurrence of counterfeit money.

The rise of mobile payment has passed more or less three stages. First of all, the way scanning the two-dimensional code to pay has changed some people's consuming habits. Then increasing offline merchants accept this payment method.In addition, the two giants Alibaba and Tencent have made many paves in the application of scenes, including shopping, public transportation and payment for water, electricity and coal.

In many fields, mobile payment has had a profound influence. The most remarkable thing is that mobile payment makes the consumption of residents more convenient,no matter whether they go out to take a taxi or go to market to buy something without cash. While promoting consumption, it can also enhance property safety. Some people joked that if we hold our cell phones in our hands all day, thieves may get no money to steal.Moreover, many financial services can be achieved through mobile phones, which means that the need for banks is less and less.This will have a far-reaching impact on the currently domestic financial industry, especially the banking industry.

On a world-wide scale, the development of China’s mobile payment is in a front-runner position.Both of its scale and extent are large, which developed faster, more frequently and more widely than the western countries.This includes both historical reasons and its own unique advantages.

Traditionally, China's financial services developed relatively slowly, which led to the situation that many people did not have credit cards or could not get relevant financial or financial services.However, mobile payments fulfill the financial demands of this groups of the population.Owing to the advanced debit card and credit card payment systems, there are fewer needs for mobile payment in developed countries.

For other developing countries which were left behind in financial systems, the development of China’mobile payment can be used as a text book.The low cost and convenience of mobile payment benefit the local people and stimulate the economic growth.However, it has a certain threshold. China put large initial investments into infrastructure, such as wireless networks, and the construction is good,thus it can support people's consumption and payment behavior. In addition, the pace of Chinese work and life is fast,which has great pursuits for convenience or efficiency. Of course, there may be some problems and risks in mobile payments.For example, the data security of the mobile payment and the stability of the payment system should be paid enough attention.

Overall, the cashless payment including mobile payment is a healthy trend. For the future, there are two tendencies in the development of China’s mobile payment. Firstly, in the process of cashless payment, people's requirement for mobile Internet technology are getting higher and higher. Secondly, there will be more and more merchants and business environments using this payment method and spread it from home to abroad. In places with many overseas Chinese and some tourist sites, more and more people use Alipay and WeChat pay, which is also the process of pushing the global layout of China’s mobile internet technology.