(Chinese Version)

Editor’s Note:

Mobile payment is most widespread and well-developed in China. It is fair to say that Chinese mobile payment tools, such as WeChat Payment and Alipay, have far better user experience than Apple Pay, Google Wallet and Android Pay. However, no Chinese smart phone manufacturer has devoted enough efforts developing their own mobile payment tools. Jin Yizhi, CEO of SDK’s mobile payment subsidiary Ping++, predicted the possible changes of Chinese mobile payment industry in five aspects.

1. Popular consumer apps will develop their own mobile payment tools

There is a famous “toothbrush theory” in the mobile payment industry: if your product is used by users more than twice a day, then you can influence users’ behavior gradually. This was exactly why Square teamed up with Starbucks. Since people drank coffee at least two times a day, they would also pay twice a day. Some of the most popular apps in China, such as Didi Kuaidi, MeiTuan and Dianping, have already achieved this goal, and have the foundation to develop a mobile payment tool of their own. Today, mobile payment is no longer simply one way of payment, but rather a whole new aspect of the future.

For example, JD has already attached great importance to mobile payment and rolled out its own mobile payment tool “JD Wallet”. For sure, more popular consumer apps will follow JD’s path and develop their own tools in the near future.

2. Banks will develop their own mobile payment apps

After failing to address the challenge brought by Internet finance companies for many years, banks suddenly realized that Internet companies were developing users among their own customers. When Alibaba rolled out Yu’e Bao, no bank thought too high of this service, since Alibaba didn’t seem to be making much profit out of this. However, when the concept Internet finance, was introduced, banks were shocked by its success. Internet companies were posing a real threat to banks. I predict that banks will soon invest heavily on mobile payment sectors, integrate their resources in debit card and credit card sector, and enhance both their online and offline services, etc.

Personally, I looked forward to progress made by China Commercial Bank, the first bank which vowed to phase out “physical” cards, and Industrial and Commercial Bank of China, “the best bank in the globe”.

3. Many mobile payment companies will be invested heavily or even acquired

Recently, many investors were reluctant to invest in the soaring stock market but were looking for opportunities to invest or acquire mobile payment companies. Investors began to see the great potential of mobile payment tools. A good mobile payment tool is crucial to any purchase and payment. Uber teamed up with Alipay so that users don’t need to open Uber to pay the bill any more, since Alipay will automatically pay for Uber users.

In the near future, many traditional companies, and even IOT companies might enter mobile payment industry by investing in or acquiring mobile payment companies.

4. Chinese smart phone manufacturers will develop their own OS-based mobile payment technology

Although Tim Cook has visited China for several times to promote Apple Pay, Apple Pay is still not available in China. How come? I don’t think it’s because Apple failed to come to agreement with China UnionPay. The fact is, however, permitting Apple Pay to enter Chinese market and make great fortunes can be really crossing the bottom line of Chinese government. Although Apple Pay seemed not to be going to enter the Chinese market soon, its concept was already widespread in China. Although mobile payment by opening Mobile Payment apps is already very convenient, payment directly by the operating systems can be far more convenient.

I predict that Xiaomi, Lenovo, Huawei, and even Meizu will develop their own OS-based mobile payment technology in the near future.

5. Mobile payment companies will develop their own POS machines to make payment smoother

In the past, mobile payment developers were all boasting their large user base. In the near future, however, if they failed to make it convenient for users to pay at restaurants, supermarkets, etc., they will ultimately fail even with an enormous user base. It is likely that Alipay and WeChat will gradually develop their own POS machines to make mobile payment smoother and smoother.

Those who fail to develop a handy POS machine will be driven out of the market, while those who do so will develop rapidly in the future.

It isn’t the best of times, it isn’t the worst of times, but the times of the Internet.

[The article is published and edited with authorization from the author @PingPlusPlus, please note source and hyperlink when reproduce.]

Translated by Levin Feng (Senior Translator at ECHO), working for TMTpost.