Why is China's mobile payment so strong?

Recently, an article on "China's mobile payment shocked Japanese netizens" has aroused heated debate among netizens. The reporter also found in the field investigation, China's mobile payment (also called cell phone payment) penetration rate is indeed very high, some vendors even frankly, do not support the mobile payment even business will be affected.

The development of traditional finance is related to mobile payment

Li Yi, deputy director of the Internet Society of China's "Internet +" Research and Consulting Center, said, "This is mainly because the original Chinese traditional banks have a weak sense of service. , Internet companies saw this and used the Internet to transform and upgrade, so that China's mobile payment has played a curved road to overtake the effect."

Li Yi said, "globally, the more the traditional financial development backward place, mobile payment or other non-cash payment is more developed, such as Kenya, the popularity of mobile payment is very high."

It is understood that in Kenya, most residents are using a mobile payment platform called M-PESA.

Inadequate banking network

Some foreign media have also reported that mobile payment is flourishing in China not only because of the development of e-commerce, but also because of a "blessing in disguise".

Saying that due to the inadequate banking network in mainland China, China's mobile payment is equivalent to the emergence of a blank sheet of paper without the baggage, so that China from the era of banknotes, skipped the check era and credit card era, directly into the era of mobile payment.

The use of mobile payments is also related to the offline spending habits of local residents

According to several media reports, people in Japan are more accustomed to using transportation cards to pay for their purchases, which can be swiped for transportation, retail, and service industries. People have also become accustomed to swiping the "one card", the convenience of the "one card" has become a major obstacle to the development of mobile payments in Japan.

China's mobile payment outbreak, the relevant policy support is also "notable"

September 2016, the National Development and Reform Commission, the Ministry of Commerce and other seven departments jointly issued a "notice on the promotion of e-commerce development of the relevant work", which is mentioned that it promotes the innovative application of electronic payment, vigorously develops mobile payment, promotes e-commerce credit information***sharing, and builds a supportive environment adapted to the development of e-commerce.

In November 2016, the General Office of the State Council issued the Opinions on Promoting the Innovation and Transformation of Entity Retail, which encourages social capital to participate in the construction of supporting facilities such as wireless networks, mobile payments, self-service, and parking lots.

Mobile payment as an industry is still growing by leaps and bounds

Internet industry research organization Yiwang International recently released a report showing that China's third-party mobile payment market reached 12.8146 trillion yuan in the fourth quarter of 2016, a 41.72 percent increase from a year earlier.

In third-tier and lower cities, about 50 percent of users chose cash as a common payment method, meaning there is still room for cashlessness to sink in.

The 2016 Alipay universal bill released by Ant Gold Service showed that the number of mobile payment strokes accounted for 71 percent of the overall ratio in 2016, compared with 65 percent in 2015.

Mobile payment has changed the way everyone is used to paying. Emerging financial industries, including mobile payment, are comprehensively reconstructing the financial elements and financial functions in China. It can be said that the financial innovation brought by the third-party payment has opened up a new road for the development of China's financial market.