Alibaba’s Alipay and Tencent’s Tenpay have created a great wave of hope in the sector of online to offline payment across China’s many stores and e-tail. They can now be used throughout the country as payment methods that work in Wal-Mart and Carrefour stores in China.
Alipay and Tencent lead the way in the Payment method market
The offline retail part of the Chinese business sector gets this offer as a great proposition as it carries a combined 80% of the share in the market. This indeed is a major leap in the country’s online payment sector as more customers are being drawn to make use of online payment platforms in majority of the stores. The question that arises next is about Unionpay, the plastic card operator which had a monopoly in Chinese payment systems over the past few years. Could this situation in turn be a rubbing between the Chinese government and improving technology built by the Chinese themselves?
As per the survey conducted during 2014, it was seen that roughly about 50% of the payments were routed through Unionpay under the e-tail and offline retail sector. On the other hand quite a good leap could be observed as the online space saw a better flow of payments made through other sources. Although the internet based methods could be card less and easier to handle and make use of, there still exists a set of people who find it better to be following the conventional plastic card based method of making payments for the retail sector that is offline.
With the advent of technology, the country has taken an entirely new position in the world ranking system with respect to the same. Payment methods of this sort promise to make life easier with instant payment involving no physical exchange and are thus preferred by majority of the citizens.