Frida Cai left China for higher education in 2013. When she returned just after three years to her hometown, Beijing, a street vendor refused to accept her cash payment for a watermelon. He said that he only accepted mobile payments through WeChat.
Though this is anecdotal, it demonstrates that China has rapidly drifted away from cash payments.
China—the nation that introduced the world to paper money—is leading the world once again. It is estimated that by 2021, 79.3% of smartphone owners in China will be swiping, tapping, and scanning point of sale systems (POS).
What is China Doing That the Rest of the World Isn’t?
Progressing, that’s what the country is doing.
China has introduced the world to contactless and mobile payments, as it did with paper money. It’s only a matter of time till the rest of the world catches up and adopts this technology.
But what has China done to be where it is today with EMV chips and NFC technology? In a nutshell, it’s targeted the millennials who—as opposed to baby-boomers—are more likely to be onboard with revolutions in technology.
Mobile payments were easily adoptable after companies and businesses started using QR codes and included them in their POS systems. QR codes lowered the barrier of entry for business owners and made it easy for customers to make transactions in the blink of an eye.
Are People Not Worried About POS Systems’ Vulnerabilities in China?
People were; everybody is at first.
Taking measures to make sure that consumers felt safe when using POS systems, China made sure that their credit card penetration rate was high. This got people used to cashless payments, after which, introducing mobile payment systems was a piece of cake.
OK, So What Sparked The Change?
Ant Financial, a subsidiary of Alibaba, is led by a Chinese entrepreneur named Jack Ma. His company was formerly known as Alipay. Alipay is a leader in revolutionary mobile payments in China, and has been leading the way since 2004. It holds a record of 250,000 transactions per second, with WeChat slowly catching up.
Mobile payment platforms are common among domestic merchants in China. People look for the same convenience when they visit other countries. Other countries need to catch up soon with the POS systems in order to host 156 million Chinese touring the world yearly.
If you’re a business owner in China—or the US—seeking an Android compliant Go-Pay or TS-890 systems, the experts at Uniform Industrial Corporation (UIC) have got you covered! They provide specifically tailored mobile payment solutions for your business.