Economy

Mobile payment in China exceeds all expectations

Mobile paymentMobile payment is a medium that offers the technology to perform financial transactions through mobile phones. The range of operations is varied and can be expanded further. 

It is a contactless payment method, which uses a specific technological platform called NFC technology (Near Field Communication). This tool is integrated into mobile phones by means of a chip.

Payment with mobile in China: a leap in technology

The adoption of new technologies for financial operations is gaining more ground around the world. China has taken the lead in mobile payment. This is why it is surprising to remember that up until just 10 years ago, you did not even have the ability to pay with credit cards.

Chinese society was not formed, like most of the West, in the culture of credit. Its economy worked with cash. However, the economic and technological changes in China have been perhaps the most surprising and radical that have occurred in the world in such a short period of time.

It is no coincidence that, thanks to the fact that Chinese society did not have the habit of paying by credit card or plastic money, it has been much easier to adapt to mobile payment. In this sense, we see the difference with other countries such as the United States, where the use of credit cards is a tradition.

On the other hand, the importance of mobile phones in Chinese society has favoured this change. More than 90% of the population has a mobile phone, in contrast to the 70% who do not have a credit card.

Mobile transactions outperform others

The total of Chinese mobile payment transactions has already exceeded the world’s total payments through Visa. In addition, this amount of money paid by mobile in China is 50 times higher than in North America. Everything indicates that this difference will not be reduced, but will increase.

It should be noted that China has a staggering 300 million millennials, people for whom the use of modern technologies is something natural, and you could say even vital. This makes these types of operations very popular.

A phenomenon only in China…for now

All types of commerce in China have the necessary technology for mobile payment, from shopping centres to small stores. However, although it seems like a comfortable and reliable system, it has only been developed in China.

Western societies continue to cling to their comfort zones and the tradition of handling credit cards. This presents the paradox of appearing as the conservatives of the world against the Chinese ability to bet on the new.

Technological advances make the security of this mode of payment better and better. There are very few drawbacks that this technology has presented to Chinese consumers. There are companies that do everything possible to delay the progress of this mode of payment, but the technology is usually relentless. Mobile payment seems to have come to stay. The next thing will be to see who will be the first to take risks in the West.

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