Market Research News

QR Payment System: Mobile Payment Market More Popular in China

  • October 14, 2017
  • By Pete Nisbet
  • 0

The QR payment system makes credit cards look obsolete and may also make cash obsolete as the more technology-savvy countries move towards instant mobile payment. WEChat Pay, AliPay, and others are revolutionizing how the Chinese pay for anything. WEChat Pay and AliPay have over 90% of this new mobile payment market between them in China.

qr Payment

We recently published a news report regarding the proliferation of mobile payments throughout China. The system was introduced in the form of a QR app by AliPay and WEChat and is now being used by Chinese consumers to pay for everything from restaurant bills to consumer goods. Simply scan the sellers QR code or have the seller scan yours – and payment is made.

QR Payment Technology in the West

This system is already in use in the west but is regarded as a quirky way to pay. In China, many look on it as the only way to pay. So how has China been able to convert so much to the QR payments system while the Western world and everywhere else still uses paper money and plastic?

 

The Chinese invented the concept of paper money and the notes to go with it. It is ironic that this is now the country that is the major protagonist of the elimination of paper money. This is largely due to the way their financial system operates. The QR code system of payment is possible because of a lack of regulation and red tape. And guess what! It works!

Mobile Payment Market Much Greater in China

BY 2016, the volume of mobile payment in China has reached 5 trillion US dollars that’s a lot of consumer payments! Wherever Chinese tourists go, they ask for mobile payment. This has led to a number of popular tourist destinations to take up the technology themselves: Hong Kong and Japan being two major examples.

QR codes appear to be a significantly more convenient payment method and also a more secure one. There is no card to be stolen or PIN to be copied. Your QR code is easily canceled if you lose your smartphone. PayPal could be made redundant: simply email your QR code and the payee scans it. The payment goes straight to your bank. Simples! Even meerkats could not have thought of anything simpler.

QR Payment System Increasing in Scope

China has a solid base of smartphone users. Tencent, the Chinese technology giant, operates WeChat, a messaging app that is extremely popular in China. It has not far off a billion users. Ant Financial Services is associated with Alibaba and operates Alipay. It has half a billion users.

 

The QR payment system appears to be on the up, and Western financial services have recognized this. However, it has not found the same level of popularity in the West than in China. Even swipe technology is becoming old fashioned now. What’s next? It may not be too long before mobile payment is the only option as it is in many Chinese outlets that no longer accept cash.

About Pete Nisbet

Pete has been working in the field of website design and content for many years. He has a great interest in technology and current affairs, particularly business affairs. Pete's interests are technology, writing and world affairs and he is widely traveled. Pete also holds an Honors BSc from the University of Edinburgh.