Ant Finance, the most valuable Fintech startup in China, announced their plan to launch another payment app based on Virtual Reality (VR) technology. It will allow customers to make payments when they are using VR.
At Lendit’s China conference in Shanghai this week, Kapronasia learned that Chinese digital payments giant Alipay is close to rolling out its new facial recognition software to the public. The lender – whose payments system holds about 48 percent of China’s online payments market share last year – has already made the feature available for employees, and plans to open it up to the public in the next few months, according to a source from Ant Financial. To pay with a selfie, Alipay users use a camera installed on the online payments platform to take a picture of themselves and the platform uses biometric methods to verify their identity. Ant Financial, which runs Alipay, is an affiliate of Hangzhou-based Alibaba Group Holdings.
China is pushing its card industry towards tokenization as it seeks to make digital payments more secure on the Mainland. Banks and payment service providers (PSP) are required to use tokenization to process transaction data by the end of this year, according to Chinese business publication National Business Daily, citing a notice from China’s central bank.
Rumours are swirling that Alibaba’s Taobao will collaborate with UnionPay. While details are still unknown, this partnership is noteworthy as Alibaba's online payments system Alipay and UnionPay have been fierce rivals for the past ten years.
Apple has turned to the mobile payments industry after the smartphone business has slowed down, as a way to increase revenue streams. Apple Pay, Apple’s mobile payment and digital wallet service, has been very successful in the United States. However, Apple Pay has been struggling to tap into international markets due to technical problems, the lack of user adoption, and resistance from banks.
Starting from only 18 employees and a small B2B platform, Alibaba has become an e-commerce giant in China and already expanded into many other industries. But Alibaba has no plans to stop, Alibaba is now working on an even bigger ambition: to insert itself into ever part of our everyday lives.
On May 20th, Samsung Pay and Alipay announced their intention to merge their online payment businesses. Now, users can import their Alipay account into Samsung Pay and with just one swipe, users can enable Alipay’s QR code. The whole process can be completed within 2 seconds, even if your screen is locked. This is a huge step for Alipay, since the new user experience increases convenience and eliminates the normal steps of finding the app and waiting for it to load. Alipay’s new process drastically decreases the inconvenience of using the QR code as a payment method. But it begs the question, why would Samsung betray UnionPay to partner with Alipay?
The PBOC-backed 'Payments Clearing Association of China' published its annual report in May. We talked about some of the digital payments statistics from the report in our previous commentary, but the report also features ranking for China acquiring market, which is even more significant because such data has never been officially published before.
The Annual Payments Report by the Payment and Clearing Association of China was published on May 19th and showed the continuing growth in payment transactions in China. The total amount of online payments reached RMB 2,042 trillion, spread between commercial banks and payment service providers (PSPs).
The long expected payment system of smartphone producer Xiaomi has finally entered the market. By cooperating with China’s dominant card-payment processor China UnionPay, users can now make purchases by using their phone and Xiaomi Pay through China UnionPays’ Quickpass system. The company’s latest offering comes as the third-party mobile payment market continues to grow tremendously. According to research firm Analysys Mason, the market valuation was set at 16 trillion yuan in 2015. This has attracted not only Chinese companies such as Huawei and Xiaomi, but foreign companies, as well.
There's a clearing platform in development that might change the playing field of the payments industry in China. The Payment and Clearing Association of China had a member congress in April and has approved a proposal to build an Internet payment clearing platform for non-bank payment institutions.
China’s fintech sector has enjoyed significant development, but has recently been constrained by more active regulators who have increased their rate of regulation to try and stay ahead of the industry development. After two years of planning and industry development, a public-private body was established by the People's Bank of China - the National Internet Finance Association.
Tencent was reporting its quarterly earnings on March 17th and for the first time the company disclosed its WeChat Wallet fees that the company pays to partner banks. Tencent CEO Pony Ma said the fees are 0.1% of each transaction and totalled more than RMB 300 million in January.
China’s mobile giant Huawei held a signing ceremony in Huawei's Shenzhen headquarters with Bank of China to co-develop next mobile based payment system Huawei Pay. This announcement was just released after Apple Pay and Samsung Pay claimed to make its entry in to China.