The Chinese have taken trading payments to a whole new level. Where the world is still dependent on handling cash, China has revolutionized the system by making the value exchange cashless.
Although questions have been raised regarding matters such as the inability of payments for people who do not have AliPay and WeChat Pay installed on their mobile phones. The fiat currency is no longer accepted by most merchants which has become a major issue for any layman. Moreover, tourists face the difficulty in payments when merchants do not accept their cash or other payment methods, as not everyone has AliPay and WeChat Pay installed on their mobile phones, do they?
Opinions are that the fatigue of taking out a mobile phone from the pocket is equivalent to the pain an individual goes through by taking the wallet out of the pocket, then how has this cashless revolution made lives easier for people? However, the concept of cashless value exchange is not only for saving people from pain but is also meant for simpler business activities. Businesses can be established through this new system of software-based value exchange which has become a more efficient platform for business models.
This new system may prove very useful for consumers as micro-payments can be made through these mobile phone applications and consumers can be offered numerous other services which may help them perform their financial activities. These services may help the consumers experience betterment in the functions, engage them and enhance their loyalty towards a brand. However, these incentives are all subjective to technology that only China has hold of and this is exactly where the West is lagging behind.
Two e-commerce giants have taken over the payment methods in China and have recorded up to 90% of the internet payment market.
AliPay, one of the leading mobile payment service providers, was founded in 2004 and went on to become the biggest mobile phone service provider all around the globe. AliPay provides its customers with services like online secured transaction, payment, transfer, credit card repayment and mobile phone recharge, as well as providing services for a number of industries such as retail department stores, movie theaters, supermarket chains and taxis.
Similarly, WeChat Pay has made its name in the Chinese market by applying a unique strategy of using offline payments combining with online payments to seize the mobile payment market. WeChat Pay also uses QR code technology to provide scan payment meaning users can pay just through scanning the QR Code using their own mobile phone, making payment procedures feasible. So, who would not want to have the ease of payments? We surely do.
These market leaders now have gotten billion of users on board which may indeed give rise to a whole new digital economy. So what’s in it for the crypto enthusiasts? That is, the mentions of these micro-payments and seamless integrations have been urged for quite a lot in the world of crypto.
A major fact about the Chinese market we all need to know is that “what goes in the Chinese market, mostly stays in the Chinese market.” However, US inventors are making constant efforts for providing Chinese tourists the facility to use their AliPay and WeChat Pay accounts for payment processes in US. Sadly, AliPay and WeChat Pay do not offer any cross-currency facility which limits the usage of these applications to the borders of China. Sad, innit?
As a famous saying quotes, “if you can’t beat them, be like them.” It is true that the Chinese market has unique dimensions than the rest of the world and not everyone can adopt to their operations and those who tried, failed miserably. So why not introduce something that could compete against China’s digital payment systems? or even go one step ahead.
This is where the role of cryptocurrency and blockchain technology evolves. The struggle to build a stablecoin continues in the world of crypto which could not only compete with China’s digital payment methods but could outclass them by allowing users to make cross-border payments.
Hence, instead of spectating the Chinese market and economy grow through its Internet of Value model (for bringing innovation and betterment in the businesses), the West must make use of the cryptocurrencies and blockchain technology and introduce a system that could help the world.