What U.S. Retailers Can Learn from China’s Mobile Payment Market
November 10, 2019
International interest has turned to China lately, in the light of threatened U.S. sanctions toward some of the world’s most popular smartphone technology suppliers, such as Huawei. However, as reported previously, these threats don’t seem to have dampened demand for Chinese products. In fact, forecasts project future growth in the Chinese technology industry across the board.
According to the new Global and China Mobile Payment Industry Report for 2019 to 2025, mobile payment systems are a growing market in China, where 47% of the population was already using mobile payment options in 2017 (compared to a measly 17% during the same period in the U.S.) This is especially important because China’s population of online users numbered a staggering 817 million people, with 583 million paying for goods using mobile payment apps on their smartphones.
Thanks to new artificial intelligence technology, the mobile payment industry could become even more popular and more secure: Pay with a Face allows users to use facial recognition software as a way to verify their identity before paying for goods with their smartphones, in both online and in-person scenarios.
Although the Chinese market may not seem relevant to U.S. smartphone retailers, theirs trends are worth watching. The mobile payment industry is gaining ground – and more advanced technology – in China’s booming market. It is just a matter of time until these trends sweep to the U.S. markets, especially as security improves and more Chinese technology makes its way across the Pacific Ocean. Retailers can use the advanced notice to get ahead of their competition by accepting mobile payments and making sure they’re incorporated in the smartphones they’re already selling.