Mobile payments, online-to-offline (O2O), bike rental services (Mobile) can literally change the world. But in China, they create not only such innovations. Active work is being done in the field of quantum physics, supercomputers, Artificial Intelligence (AI) and other areas.
The question may arise, are these innovations Chinese? In fact, today not everyone believes that China is able to create such breakthrough products as in the past – paper or gunpowder.
Anyone from the West knows about the difficulties of paying for purchases with cash in a supermarket. Mobile payments in China have long been the norm. Not only can this save consumers from the stress of paying for their purchases at the supermarket, it is also building on entirely new business models that are revolutionizing many markets. In China, models such as O2O or rental services are flourishing thanks to the development of mobile payments and the use of similar applications: Alipay Ten pay WeChat Wallet.
The popularity of bike rental apps (Mobile or Of shows how China is not inventing, but innovating, integrating the service into the existing environment. Of course, there are bike rental apps in other countries, but the Chinese way is unique in its own way. Consumers in China, they connect their phones, through the above services.
with their bank accounts, so setting up the application is much easier and faster than in other countries where you need to connect a credit card (which includes many security checks). In March 2017, the growth was more than 100%. Thanks to its high degree of affordability, China has become the world leader in the entire on-demand transport market (bicycles, cars, accounting for 67%. This success is an example of how the Chinese model can change the way transport systems are used worldwide.
In a world where it was generally believed that street shops would be swallowed up by e-retail, China is showing how the two types of marketplaces can be combined.
Let’s look at the general problem of the West. For example, the popular online store Calando, which sells all types of shoes, clothes, accessories, and provides customers with the opportunity to return purchases for free. In fact, a model in which a consumer could return a product of a particular brand they just purchased and try another brand would be more convenient. China sees this as a new opportunity.
In general, O2O implies a range of services in China as the consumer expects one-stop service. First of all, O2O offers a service where goods can be bought online and picked up in a store. According to a study by Dixie Consulting on O2O in China, in 2016, 72% of Chinese consumers want to take advantage of the opportunity to shop online and return or exchange in store. In the future, O2O services will include custom product design and online physical storage status checks, as well as the ability to purchase goods in a store and automatically deliver them to a consumer’s home.
Major changes could happen in China thanks to a combination of mobile payments and QR code technologies. Today, many street shops are disappearing as consumers shop online or visit stores only to evaluate a product and then find the best deal and buy it online anyway. However, the introduction of QR codes could prove useful for stores.
Placing QR codes next to a product in a particular store allows the consumer to get detailed information about the product. For example, a consumer can see the product he needs live before buying online. An example of this is Layout the largest children’s goods retailer in China, which has implemented QR codes so that parents can get all the information about the product and choose the most suitable product for their child.
Another innovative way to connect offline stores to the online world is the Dall app, which turns physical supermarkets into virtual ones. The application shows the products of supermarkets, and the consumer can select the desired product. This app has the potential to change the way consumers around the world shop for food and household items.
It is definitely an extremely effective innovation, if you remember the supermarkets with their long queues. First, the app reduces the amount of time customers spend shopping. Secondly, supermarkets do not lose customers due to queues. And thirdly, it creates additional jobs.
The introduction of mobile payments combined with QR code technology in the rest of the world will help change the way people buy, use, return and exchange goods. Thus it affects the economy of the whole world. In addition, start-ups will continue to spring up all over the world with completely new business ideas based on mobile payments.
It’s really about whether the rest of the world can adapt to today’s Chinese standards. So, what is driving the explosion of mobile payments and O2O in China?
One of the main reasons for facilitating mobile payments in China is the low adoption rate of credit cards. Even if you look at the rate of card adoption among urban consumers with bank accounts, it is only 41% for the 1990s group, compared to 77% in the US. This stimulates mobile payment activity, which increased to 25.71 billion transactions (with a volume of 157.55 trillion yuan) in 2016, up 86% year-over-year (year-on-year).
The ease of simply scanning a code to transfer money to a specific supermarket, restaurant, or even the smallest street food store further simplifies the use of mobile payment systems.
It is also worth considering that consumers, no matter what country they are from, have difficulty switching between different payment methods.