Retailers Dabble in Mobile Payment Technology
2018-11-28 14:44 Wednesday
Due to widespread smartphone adoption and low credit card penetration, mobile payment has assumed a dominant market position in China. Approximately 525 million people have used mobile payment apps such as WeChat Pay and Alipay to complete payments in 2018, a increase of 13% over 2017.
"These payment services in particular helped encourage adoption by running cash prize promotions and other discounts tied to the Lunar New Year holiday. Mobile payment use has also been hastened by the widespread adoption of QR codes in China, which lower the cost barrier for merchants and make processing transactions dead simple for shoppers," said eMarketer senior analyst Rahul Chadha.
According to the market research firm Research and Markets, China's mobile payment transactions are projected to exceed 790 trillion yuan (113 trillion US dollars) in 2021. Mobile payment transactions rose to 295 trillion yuan (42 trillion US dollars) in 2017, up 41% from 2016. The numbers indicate that China's mobile payment technology is unparalleled in the global economy.
Some retailing giants have just begun accepting mobile payments. Fossil Group, a prominent American company specializing in lifestyle accessories, is integrating Alipay into more than 150 stores across 11 European countries.
Convenience store 7-Eleven is testing a new mobile app called Scan & Pay that will free customers from queuing and assist them with completing payments using nothing but a phone.
The trial program has been launched in 14 Dallas-area stores and works on both the iOS and Android mobile platforms. The Scan & Pay app can pay for almost all purchases in 7-eleven except for alcohol and lottery tickets, which may require a proof of age. Customers also can receive discount notifications within the app, . 7-Eleven plans to roll out the app on a national scale in 2019.