In recent years, China’s mobile Internet has developed very rapidly, and smartphones have also been widely popularized, making mobile payment increasingly entering the lives of the public. Now you don’t carry cash when you go out, you can pay for everything by scanning the code on your mobile phone. People are more and more accustomed to mobile payment methods, and mobile payment plays an increasingly important role in daily life. Today, mobile payment can almost support most people’s consumption behaviors, from large commodities to small street stalls, online shopping, and offline consumption. Mobile payment can be used. The trend of mobile payment replacing bank card payment and cash transactions are becoming more and more obvious. Therefore, it is of great significance to sort out the development status of mobile payment, analyze the reasons, advantages, and disadvantages of its rapid development, and put forward countermeasures and suggestions for its healthy development in the future, which is of great significance for further deepening the understanding of mobile payment and promoting the healthy development of mobile payment.
1. The development status of mobile payment in China
Mobile payment is a way to allow people to use mobile devices, most of which are mobile phones, to pay for consumer goods or services, so it can also be called mobile payment. The current domestic mobile payment development has the following characteristics:
(1) Very rapid development
according has reached nearly 530 million people, and the scale is very large. According to the “Special Research on China’s Third-Party Payment Industry 2018” report released by Analysys Think Tank on September 26, 2018, the scale of mobile payment has grown from 1.3 trillion yuan in 2013 to more than 109 trillion yuan in 2017. The overall rapid growth, the growth rate has exceeded 100% for 4 consecutive years.
(2) The application is very
common almost all payment fields such as offline payment retail, catering, shared bicycles, and public transportation have begun to be widely used. According to the “2017-2018 China Third-Party Mobile Payment Market Research Report” released by iiMedia Research in April 2018, in the first three months of 2018, when shopping offline, 54.1% of the surveyed netizens preferred to use mobile when shopping. Payment, occupying the first place; 51.4% of the interviewed netizens prefer to use mobile payment when paying for living expenses, occupying the second place; the proportion also prefers to use the third-party mobile payment for offline consumption such as transfer, transportation, dining, recharge, etc. All are higher than 30%.
(3) The market is very concentrated
Mobile payment started late in China, but it is developing very fast. At present, the leaders of domestic mobile payment are mainly Alipay and Tencent Finance, which have a wide range of users and occupy the largest market share of domestic mobile payment platforms. Other mobile payment platforms generally only have advantages in a small specific market and have a very small share. According to data from Analysys Think Tank, in the first quarter of 2018, the two mobile payment giants, Alipay and Tencent Finance, accounted for 92.71% of the total market share, and the two had absolute dominance, of which Alipay had a market share of 53.76%, Tencent Finance The market share is 38.95%.
(IV) Advantages have their emphasis.
When using mobile payment, the proportion of users using Alipay for online consumption payment is greater than that of WeChat, and the proportion of offline consumption and payment using WeChat is greater than that of Alipay. Both have their advantages. According to data from iiMedia Research, in the first three months of 2018, 59.2% of Chinese netizens used Alipay for online purchases, and 59.5% of them used WeChat for offline purchases.
2. Why is China’s mobile payment developing like this? Rapidly
(1) Large market scale and good economic foundation
China is the country with the largest population in the world, and at the same time, China is the largest developing country in the world, and its GDP ranks second in the world, which provides sufficient resources for the development of the mobile payment industry. Demographic dividend, solid economic foundation, and broad growth space.
(2) High regulatory tolerance and large market inclusiveness
Chinese regulators have adopted a regulatory policy of encouraging innovation and risk prevention for the development of mobile payments, providing a relatively relaxed regulatory environment. On mobile payment software, such as Alipay and WeChat, most bank cards can be bound, and major banks also actively support mobile payment and seize the market, which fully reflects the high tolerance of supervision and the inclusiveness of the market. , which has greatly promoted the development of the mobile payment industry.
(3) High payment efficiency and low use cost
Mobile payment has the characteristics of strong convenience and low cost. Compared with swiping cards and other methods, the transaction cost of mobile payment is very low, there is no need to go to the bank to handle related business, only a mobile phone can be done, and payment can be completed by scanning a QR code. Users are very easy to accept this efficient and low-cost payment method.
(4) The popularity of smartphones, driven by market demand The use of
Smartphones in China are very common, and their popularity is also very rapid. According to data, by the end of 2017, the number of Internet users in China reached 772 million, of which the number of mobile Internet users reached 750 million. It is expected that the number will increase to 810 million by the end of 2018. This provides users and technical support for the development of mobile payment. At the same time, the construction of China’s credit system is relatively backward, and payment tools such as Alipay can solve the credit problem of shopping payment and greatly meet the needs of users, so it has developed rapidly, thus driving the development of mobile payment.
(5) Emancipation of ideology and promotion of business enterprises
In China, the ideology of the public has also changed with the great changes in society. For the new thing of mobile payment, people dare to try and accept it. China Mobile Payment originated from the development of e-commerce. First, Alipay was launched in 2003, which solved the problem of mutual trust between customers and merchants in online shopping. It played a key role in the payment process of online shopping and solved the “pain points” of online shopping users. With the rapid development of online shopping, Alipay has also achieved rapid development, driving the development of mobile payment online and offline. WeChat Pay was born in 2013. With the help of a strong user group, it began to compete with Alipay. The two companies occupy an dominant position in the domestic mobile payment market.
3. Advantages and Disadvantages of Mobile Payment
(1) The main advantages are
The main reason why mobile payment is favored by the public is its convenience and quickness. Its main advantage is that mobile payment can break through the constraints of time and space. Whenever and wherever, as long as there is a network, a mobile phone can pay for various expenses. It greatly saves transaction costs and also saves the cost of travel and time for paying fees, and there is no need to change, the operation is simple, and the use is convenient, so it quickly attracts a large number of users.
Cash used is easy to lose, or wallets to be stolen. Using mobile payment, the funds are stored in WeChat or Alipay to prevent theft. Even if it is stolen, the mobile phone needs to be unlocked, and the funds will be in the account of the funds, which is not easy to be stolen. At the same time, for the counterfeit banknotes that people hate in daily transactions, mobile payment can of course be perfectly eliminated because cash is not used.
3. Environmentally friendly.
Paper money was the most important medium of exchange before the widespread use of mobile payment methods and has been widely used. However, banknotes will be worn or even damaged in circulation, so banks need to regularly return the banknotes for destruction and replace them with new ones. This will undoubtedly cause damage to the environment and waste resources. At the same time, while the bank notes are being traded, there will be a lot of bacteria, posing a threat to human health. Mobile payment does not use banknotes, which can perfectly avoid these problems, and is healthy and environmentally friendly.
4. Ease of management.
The mobile payment software can list the details of capital expenditure and income for the user, which greatly facilitates the user’s accounting and consumption statistics, and is very helpful for the rational use, management, and planning of the user’s funds.
(2) The main disadvantages are
1. Payment security risks.
Mobile phone is an essential carrier of mobile payment, so the security of mobile phone is directly related to the security of payment. The biggest threats to mobile phone security are Trojan horses and viruses. By implanting viruses into mobile phones in various ways, criminals can steal user account funds, which poses a great threat to the security of mobile payments.
2. Risk of information leakage.
When consumers consume, they will leave their personal information and data to merchants and payment software, so a lot of information and data of consumers will be mastered. If a merchant sells this information and data for profit, or if the consumer’s personal information on the merchant and transaction software is leaked and stolen, it will undoubtedly bring great risks to the safety of consumers, and even endanger the safety of consumers’ lives and property.
3. Stable payment risk.
Since mobile payment is mainly implemented on mobile phones, once the mobile phone is out of power, there is no way to make payments. In addition, the network is unstable. Once a major natural disaster occurs, affecting network security, there will be problems in the transactions of the entire society. If there is no cash reserve, this is very dangerous, and it will even seriously affect social stability.
4. Industry regulatory risks.
The mobile payment industry involves information, commerce, currency, security, and other aspects, involving a wide range of areas and many management departments, so there will be a phenomenon of multi-level supervision. Multiple supervision will affect the effect, prone to repeated supervision, and at the same time, there will be supervision blind spots. At present, the domestic supervision departments of mobile payment mainly include the central bank, industry and information technology, industry and commerce, and other departments, but the scope of responsibilities is not very clear, and the phenomenon of lack of supervision and cross supervision still exists.
4. What aspects should we focus on in the next development of mobile payment
(1) Strengthening security
While giving full play to the convenience of mobile payment, the security of mobile payment should be maintained to the greatest extent, and the two should be highly unified. First, it is necessary to improve the security level of the payment software system, improve the payment software system, reduce security loopholes, and strengthen the anti-attack capability of the software. Second, intensify efforts to crack down on the creation of Trojan viruses to attack mobile payment software for profit, and maintain a safe and clean payment environment. Third, it is necessary to intensify efforts to crack down on the sale of personal information of mobile payment users and provide an honest payment environment for the user group. Fourth, we must improve the protection measures for the rights and interests of mobile payment users, improve rights protection channels, and do everything possible to safeguard the legitimate rights and interests of mobile payment users.
(2) Perfect laws and regulations The healthy development of
Any industry is inseparable from the protection of perfect laws and regulations, and mobile payment is no exception. A sound mobile payment legal system is conducive to ensuring the healthy development of the industry and the security of individual payments, allowing consumers to consume with confidence, allowing users to use with peace of mind, and promoting more people to use mobile payments. Security norms and unified standards for mobile payment platforms should be formulated, and operators of mobile payment platforms should be required to take precautions against risks; punitive measures should be formulated to combat network fraud, network attacks, theft of personal information and even funds, and crackdown on malicious attacks on mobile payments for profit. behavior; cybersecurity laws and regulations should be improved to provide a good environment for mobile payments.
(3) Strengthening industry supervision
The government should further strengthen supervision in mobile payment, strengthen top-level design, build a sound supervision structure, further clarify the leading department of supervision, clarify the scope of responsibility of all relevant supervision units, and refine supervision responsibilities, and there should be no lack of supervision subjects. , multi-management or cross-regulation issues, to maintain the healthy and orderly development of the mobile payment industry.