Mobile payments taking off in China

Shopping carnivals initiated by Chinese e-tailers are generating massive sales. China’s famous Cyber Monday (11 November) registered record sales of USD10 billion within 24 hours in 2014. Has China entered the age of digital payments? Spire Research and Consulting shared its insights, published on the US Consumer Electronics Association’s blog.

Chinese e-commerce giants including Alibaba Group and JD.com offer huge discounts during such e-commerce shopping carnivals to propagate digital payment technology, to the massive acclaim of Chinese consumers.

As China’s e-commerce market expands, third-party payment platforms lead the way. This space is dominated by Alipay (Alibaba), UnionPay, 99Bill and Tenpay (Tencent). The potential is evident from Alipay’s hike in transaction value to USD9 billion in 2014 in comparison to USD8 million in 2009.

At the same time, payments are not only limited to the e-commerce realm but include mobile payments as well. These include E-wallet, repayments (credit card and loan), electronic funds transfer, utilities (water, TV, electricity and so forth), insurance, as well as charitable donations, to name a few.

Some innovative approaches to mobile payments are Alipay’s AA payment which allows the splitting of a single bill amount, as going Dutch in China is quite common. It helps a user create an Alipay group and sends notifications to other payers (in group) for the total amount to be collected. Tencent’s Tenpay launched a similar app by adding a mobile wallet feature to its popular WeChat mobile messenger – keeping in view its wide user base of 500 million in mainland China and 100 million overseas users.

On the other hand, mobile payments are being pushed into the brick and mortar channels through shopping carnivals such as the ‘Double 12 (December 12)’ with heavy discounts given to customers for purchases via mobile payments in physical retail outlets.

The good news is that this concept is working wonders – more than 20,000 stores from over 100 retail chains including FamilyMart and MerryMart were part of the ‘Double 12’ in 2014. This carnival became a magnet for thousands of post-60 and post-70 Chinese nationals trying their hand at this technology.

There can be little doubt that mobile payment is taking off in China.

https://www.spireresearch.com/newsroom/media/mobile-payments-taking-off-in-china/

Comments

Egyptian-Israeli gas deal to boost bilateral trade

A USD15 billion deal has been announced between Israel and Egypt to export natural gas. Israel’s Delek Group has signed an agreement to supply 64 billion cubic meters of gas in a span of ten years to Egypt’s Dolphinus Holdings. The deal is considered a milestone ever since the 1979 peace accord, bringing Egypt a step closer to becoming a regional energy hub. However, the transportation of natural gas from Israel to Egypt is a challenge given the security risks. Will the Egypt-Israel gas export deal usher in a relationship of bonhomie and economic co-operation? Read more here: https://www.spireresearch.com/newsroom/spirethoughts/egyptian-israeli-gas-deal-to-boost-bilateral-trade/

China leads the way with eco-innovation

https://www.spireresearch.com/newsroom/spirethoughts/china-leads-the-way-with-eco-innovation/ China is starting to take a leading position in eco-innovation. This has been driven by the country’s large-scale efforts to address pressing environmental challenges, such as in the areas of air pollution and flood control. Many companies are lending support to this cause. For instance, the Beijing subway introduced special vending machines in May last year which reward commuters with discounts on their travel pass when they recycle plastic bottles. In the same year, Nike opened a concept store in Shanghai which was entirely constructed out of trash. The no-glue construction ensured that all materials could be reused in future. Is China ready to remap the path of eco-innovation?

Augmented Reality – Bridging the gap between the real and virtual consumer experience

Video games and movies have long been entertaining us with ever-more sophisticated and realistic computer-generated special effects. The latest trend in computer-generated experiences is Augmented Reality (AR), which is pulling graphics out of computer displays and television screens to integrate these into our real-world environment. With projected growth of 95 per cent a year from 2011, to reach revenues of USD5.2 billion in 2017, will AR succeed in blurring the line between the real and virtual user experience? What is AR? Simply put, Augmented Reality enables superimposition of computer generated data onto our direct experience of reality. It aims to enhance the user’s current awareness of reality by supplementing the real world with 3D virtual objects. The term – Augmented Reality – was originally coined in 1990 by former Boeing researcher Tom Caudell. The technology gradually spread to other platforms such as mobile applications in 2008. New AR mapping and social to...

Pokémon Go – A game changer for marketers?

Have you caught your Pokémon yet? Pokémon Go – the mobile application-based game – is immensely popular. The game uniquely uses Augmented Reality technology. It has succeeded in growing its user base beyond just fans of the Pokémon comic. With the ability to drive foot traffic to stores, the app has created a new and potentially powerful platform for companies . Clocking in 7.5 million downloads since its debut in the U.S. on July 2016 , is the app a marketer’s boon – or is it destined to become just another “has-been” fad? What is Pokémon Go? Taking gamification to the next level, Pokémon Go is a gaming application based on the concept of augmented reality (AR) to deliver a real-life Pokémon experience. Released in July 2016, the game was developed by Niantic Labs and published by the “father” of Pokémon, Japanese company Nintendo. Using Augmented Reality technology similar to Google Maps, players need to find Pokémon characters at random physical locations and captur...

India’s ‘hairy’ exports for Africa

Renowned for its beauty, texture and strength, the Indian hair export market is worth about USD393.5 million. With rising demand in the African subcontinent for extensions and wigs, Indian companies are now keen to invest into the hair business more than ever. The recent announcement of South Africa-based hair extension company Friska Hair being acquired by Godrej Consumer Products India shows that hair export is serious business. One driving factor is Africa’s young and growing population, which helps ensure that consumer spending grows in lockstep with GDP. This is good news for Indian hair exporters. https://www.spireresearch.com/newsroom/spirethoughts/indias-hairy-exports-to-africa/

The Knowledge to Decide

Search This Blog