Displaying items by tag: software

The Financial services sector is integrating AI (artificial intelligence), machine learning and predictive analytics at a remarkable rate for both customer-facing and back-end operations. One element commonly associated with AI, but one that has not yet made a strong impact, are ‘chatbots,’ computer programs designed to simulate conversation with human users. However, this could be about to change, with large financial institutions starting to experiment and launch products leveraging AI technology.

Published in Asia Banking Research

This is part one of a two part series concerning China Unionpay's launch of Android Pay. Today we take a look at Android Pay's potential impact on the mobile payments industry. Part two will look at China Unionpay's business strategy within the mobile payments space as it launches an Android based mobile wallet.

Currently there are 637 companies on the IPO list in China and their prospectuses, published by the China Securities Regulatory Commission, reveal business intelligence, previously not available for public.

Published in China Banking Research

People prefer to keep their information in a safe place, so do nations. After the PRISM scandal information security issues has become a concern for many countries.

Published in China Banking Research

You'd be forgiven for missing it, but in the buying spree that we've seen in the last couple of weeks from Alibaba, one of the most significant investments was for a controlling stake in Hundsun Technologies. The ~US$532M investment in the firm means that Alibaba now has control of nearly 95% of all domestic trading systems in China and continues to consolidate its position as a financial technology provider.

Once known for its economic development zone, the rich Yangtze river delta now has become a hotbed for something else: non-performing loans. 

Published in China Banking Research

The Alipay Wallet 7.6, which was rolled out on October 29, 2013, provides over 30 functions and services. It is reported that the launch of this new Alipay Wallet has extended its services in new areas and provides some significant benefits to consumers. Among these services, the most innovative are “payment with soundwave technology”, “transferred payment with emotional feelings”, “payment by snapping payment cards”, “Official Accounts” and “loading money into on-purpose campus card”.  

Payment with Soundwave Technology

The application of soundwave technology in Alipay Wallet with smartphones allows consumers to make payments conveniently even when there is no 3G or Wi-Fi signal, such as at subway vending machines. By holding the phone close to the payment receiver on the vending machine, the phone can authenticate and authorize payment via sound.

Alipay has already setup relationships with eleven vending machine operators that cover about 90% of the Chinese market. At the end of 2013, this soundwave technology will be used in over 50% subway vending machines.

In addition, soundwave technology can also be used to purchase movie tickets.  After paying for movie tickets from Alipay wallet, consumers can get tickets by releasing noise generated by smartphones which will be recognized by ticket machines in the cinema.  

“Transferred Payments with Emotional Feelings”

To provide a more ‘humanized experience’, the Alipay Wallet 7.6 allows users to use personalized icons and voice messages when transferring payments. Unlike a payment that might come across saying ‘You have received 100RMB’, users can now choose from abundant personalized icons or leave voice messages with the receiver when conducing payment transmission. This may not seem that interesting, but in China, a lot of business is conducted over instant messenger and phone chat where emoticons and electronic signals of feeling are important, it does add an interesting element.  However, it should be noted that the new function only supports payments within Alipay.

Payments by Snapping Bank Payment Cards

The new Alipay Wallet has an enhanced “code scanning” function. In addition to existing scanning QR codes, bar code, tracking numbers, it offers service of scanning bank payment cards. This new function can distinguish information automatically including issuing banks, types of banks, card numbers, which make it convenient for users to transfer money.  In addition, it adds function to pay off credit card bills automatically.  Currently users can use Alipay Wallet to inquire credit card bills of 14 different banks. In addition, as long as the automatic payments function is active, Alipay Wallet will pay off credit card bills automatically 5 days before the deadline and will inform users by free text message.

Official Accounts

Official Accounts connects consumers directly with merchant accounts through the app for services. Basically the “Official Accounts” includes around 10 banks, such as Industrial Commercial Bank of China (ICBC), China Merchant Banks (CMC), Agriculture Bank of China (ABC) and etc; three most famous telecom operators of China Unicom, China Mobile and China Telecom; and other merchants such as, McCafe, One Foundation, hospitals etc.

Within banking accounts, Alipay Wallet offer users’ inquires into balance, inquiries on account transaction details and inquiries on bank outlets. From telecom operators’ accounts, customers can inquire their bills and alternate mobile phone packages. Moreover, Alipay Wallet’s cooperation with McCafe, hospitals and other merchants, make it convenient for customers to recoup the coupons, pre-register, register in hospitals, as well as enjoy other services.

Loading Money into single-purpose Campus Card

Another new feature of Alipay Wallet is for university students. Instead of finding a recharge machine, students can load money into their 'on-purpose' campus card directly by Alipay Wallet. There are currently around 20 universities in Beijing, Shanghai, Guangzhou and Suzhou, cooperate with Alipay for this service.

Key Thoughts

The new Alipay wallet 7.6 is an interesting development. Many of the functions make a lot of sense to just about anyone around the world - like the soundwave technology. The others, like the 'emotional payments', might seem a bit different, but are very tailored to meet the needs of the local users which has been one of Alibaba's keys to success across all of its platforms and it's where foreign players have often struggled in the past.