Future of payments
This article is part of a series of articles on the future of payments. Read more.
Need to know
- Mobile payments, arguably, were the first popularly accepted form of payment after cash in China. Unlike mature economies, China did not experience an established behaviour of using credit and debit cards.
- Most younger Chinese citizens do not see mobile payments as one-dimensional or simply a form of transaction. Instead, they expect that payments will lead to further social, information and monetary benefits – a fundamentally different mental starting point to consumers in other markets.
- As both Alibaba and Tencent fight for supremacy in mobile payments locally, they are creating large ‘data lakes’ as consumers record purchases across a wide range of different services including food delivery and ride hail apps, new retail, e-commerce, fintech, and physical brick-and-mortar.
- Businesses that provide one or both of China’s go-to mobile payment apps are essentially offering a huge boon to their Chinese customers, saving them from the now unfamiliar idea of using cash, or the cumbersome idea of using cards.