China Connect Mornings – Special "Mobile Payment & Fintech in China"

ChinaConnectEU
chinaconnectforum.com
Jan 24,
2018
Mobile Payment
& Fintech in China

@ChinaConnectEU chinaconnectforum.com
Prologue

Big Banks loosing ground
to China’s fintech giants

World’s No.1 Money Fund shakes
financial institutions
Alibaba’s Yu’e Bao « Leftover treasure » has accumulated about 325M Chinese
users since launching in 2013

Online cash lenders cash in
« In a country that lacks reliable ways to tell who might be a good borrower,
these lenders use AI and oddy personnal data - like tracking how fast prospective
borrowers type on their phones – to determine who will pay them back »

No cash ? No problem
Towards a wallet-free society
A Wall Street Journal 10 minutes video

No Cash Day / Cashless Month
since 2015
Cashless Week
Started Summer 2017
74% say they can survive up to 4 weeks
with only 13€ in cash
Win in-app rewards ranging in value from about 10 cents to $700.

« You know you’ve gotten BIG
when the central bank worries about your
promotional activities »

« Online payment: the fourth revolution »
Sébastien Bazin, CEO AccorHotels

Trump says NO

Context
&
Trends

Openess to try tech finance products

China’s shift to smarphones
Source: GSMA
Smartphones
as % of all phones in China

Fueling China’s mobile payment success
Chinese consumers much more
comfortable shopping on their mobile
phones vs U.S.
Less resistance from other legacy
payments methods like credit cards
Open approach to mobile shopping
fortified by Alibaba marketplaces, and
WeChat go-to messaging platform, which
support Alipay and Tenpay
Leverage their customer base to enter
the e-commerce business
Chinese outbound tourists projected to
exceed 200M in 5 years from the current
110M
WeChat Pay/Alipay/UnionPay intensify
expansion
Mobile commerce
Lack of legacy
infrastructure
Marketplaces
Social Media Platforms
Chinese travelers abroad

Single’s Day Mobile shopping share

Smile to Pay

Facial recognition to pay:
on its way to be mainstream

QR Codes Are The New Cash

Platform
agnostic
Easy to use
Inexpensive Ubiquitous
Users unlock their phone and click
on an icon to show an auto-
refreshing QR code that can be
scanned by the merchant.
Over 600 000 merchants accept
Alipay payments. On a promotional
day where WeChat charged no
merchant fees for using its
network, 700 000 accepted
WeChat Pay in China.
Both Alipay and WeChat pay
apps work across the Android
and Apple iOS platforms, which
account for 99.3% of China’s
smartphone market in urban
areas.
Users make transactions for free
and receive points that can be
exchanged for gifts or credit. On
average, merchants pay 0,6% to
process digital payment
transactions through WeChat
Pay or Alipay.
Why QRcodes are catching up

THANK YOU @ChinaConnectEU chinaconnectforum.com
« Less than 0.1 sec to pay a bill »
WeChat first unmanned store in Shanghai, opened Jan 20, 2018

Mobile payments skyrocket through
non-banks services
Sources: Tencent, Ipsos – RDCY Summer 2017

Sources: Tencent, Ipsos – RDCY Summer 2017
... and exceed 50% across
all retail sectors

Key Figures

FUNCTIONALITY
PAYMENT Alipay Tenpay,
WeChat Pay
Baidu Wallet 1qianbao JD Payment Xiaomi Pay
LENDING Ant Micro Loan,
Huabei
Weilidai,
Renrendai
Baiduxiaodai Changyi,
Puhui
JD IOU
BANK MyBank WeBank Baixin Bank PingAn Bank
INSURANCE ZhongAn Insurance,
Cathay Insurance
ZhongAn Insurance BaiAn Insurance PingAn Insurance,
ZhongAn Insurance
JD Insurance
SECURITIES Tebon Securities Futu,
Huatai
PingAn Securities Tiger Securities
WEALTH
MANAGEMENT
AND
DISTRIBUTION
Tianhong,
Yu’E Bao,
Ant Jubao
Shumi
Taojin
100 Index
Howbuy.com,
Licaiton
Baifa,
Baizhuan
Lufax JD Xiaojinku Jijinbao,
Huoqibao
CREDIT SCORE Sesame Credit Tencent Credit Qianhai Credit
CROWDFUNDING Taobao
Crowdfunding,
Antsdaq
Tencent Lejuan PingAn Haofang JD Crowdfunding Duocaito
Chinese Digital Finance Platforms
Key functionalities

Source: Better Than
Cash Alliance
Digital payment growth in China
Alipay Tenpay

Source: eMarketer, Nov 2017
Proximity Mobile Payment Users and
Penetration in China
Note: ages 14+; mobile phone users who have made at least one proximity mobile
payment transaction in the past 6 months; includes point-of-sale transactions made
by using mobile devies as a payment method; excludes transactions made via
tablet; exclude Hong Kong.

“JPMorgan every year, as we speak,
processes through our QuickPay, 94M
payments. But Tencent over Chinese
New Year, in five days, processed 46B
payments. Basically that means 800M
payments per hour.
Visa has a maximum capacity of
processing 25,000 payments per
second. But Alipay can process 50,000
payments, twice as much, per second »
Jing Ulrich,
vice chairman Asia Pacific JPMorgan Chase
August 2017 – Rise conference/HK

Key Players

SERVICES CHINA UNION PAY
Devices supported All smartphones, tablets and
computers
Most smartphones All smartphones, tablets and
computers
Financial services offered • Money transfer
• Bill sharing
• Bill payments
• E-commerce payments
• Mobile balance top-up
• Bank account balance check
• Hotel booking
• Purchase tickets
• Money transfer
• Bill payments
• Access to wealth
management funds
• Mobile balance top-up
• Taxi ordering
• Hotel booking
• Withdrawing cash from ATM
• Credit card consumption on
POS
• Bill payments
• Card repayments
• Hotel booking
• Money transfer
• Reissuing new cards
• Tax refund in 36 countries
• Issue receipts
• Promotions or coupons from
merchants
• Pay Tax balance
Currencies supported 18 Major ones Almost all
Transaction charges Only on withdrawals at a rate of
0.1% per transaction over
RMBY20,000 (US€153)
Only on withdrawals at a rate of
0.1% per transaction over
RMBY1000 (US$153)
Most of the consumers’
transactions are free, CUP
charge fees for ordinary
merchants at a rate of 0.7% fixed
for bank, 0.1% for CUP
Services mapping

Alipay leads in featuring financial products

Alipay vs WeChat
Sources: techinasia; DMR
MAU, in millions

53.7%
520M users
Launched 2013
39.3%
600M users for WeChatPay
+980M for WeChat
Launched 2009
Source: Analysys
Market share Q3 2017
…WeChat is playing catch up on payment

The explosive rise of virtual hongbaos exchanged on CNY's
Eve highly contributed to the fast growth of WeChat Pay

Source: Analysys
Market share Q3 2017
Alipay WeChatPay Others
…WeChat is playing catch up

Mobile Payments by Valuemobile payments,
billion USD

Use of WeChat for payments has grown faster
than the usage of the platform itself

Interview
AccorHotels – Ingenico – Tencent IBG
January 2018

Exclusive Interview
JD.com France – Tencent IBG
January 2018

THANK YOU
In partnership with
Hosted by

THANK YOU @ChinaConnectEU chinaconnectforum.com
SAVE THE DATES

THANK YOU
Web: chinaconnectforum.com
Twitter: @ChinaConnectEU
Facebook: facebook.com/ChinaConnect
YouTube: youtube.com/user/ChinaConnectEU
LinkedIn: https://www.linkedin.com/company/china-connect
Weibo: weibo.com/chinaconnecteu
Youku: i.youku.com/chinaconnect
LauredeCarayon

WeChat
and
WeChat pay
WeChat pay as the cornerstone of an integrated strategy:
approach and examples of end-to-end customer journeys
on WeChat in China and in overseas markets

Agenda 2
WeChat and WeChat pay’s role in the Chinese digital ecosystem1
WeChat pay in a nutshell: how it works
3 Case examples in China and abroad

980
MILLION
Monthly Active Users

65%
of which were born
in the
’80s or ’90s

1+ Million
WeChat Pay
transactions…
…PER MINUTE

Chinese
New Year
2017
14.2Billion “hongbao”
exchanged on WeChat in
one dayFrom tradition…
...to social innovation

IT IS THE INTERNET REDESIGNED…
... BORN FROM INSTANT MESSAGING

54
WeChat
Pay
Driving the cashless
revolution

WeChat pay is replacing cash across China
Fonte: Tencent, Penguin Intelligence
E-wallet
(i.e. WeChat Pay)
Cash
95%
38%
OFFLINE Payment tools of preference?

Through WeChat, the payment becomes a key element of the consumer journey,
at the centre of online/offline marketing strategies

Stand alone
solution
§ No need for system
integration
§ PIN verified transactions
§ Dedicated hardware to
either generate QRcodes
or scan the one of the
client

POS integrated
solution
§ No need for
additional/dedicated
hardware
§ Full integration with POS
procedures (e.g., no need
to re-type the amount on
the POS)
§ Possibility to generate
QRcode or scan the one of

ONLINE
§ API based integration
with Websites,
MiniPrograms, Official
Accounts

ADS in Cina
Official
Account/MiniProgram
ADV Outbound
QRcode in store
WeChat Pay
E-Commerce in WeChat
Reach out to consumers in ChinaAttract themDrive them to storeEngage themManage transactionsNuture the relationship

Context
A Hot Pot Chain in Singapore and Japan,
Hai Di Lao added WeChat pay in 2017
When launched, after settling their bill via
WeChat, each customer could redeem
up to 2 red packets on WeChat. These
red packets contain different cash prizes,
up to RMB 888
Results
Haidilao Japan experienced a growth of
25% per month in WeChat Pay usage for
7 months consecutively. Other Japanese
businesse
How Hai Di Lao Hot Pot boosted sales through
WeChat pay

How Caesar hotels has integrated WeChat and WeChat pay across
the whole customer journey
2015: Caesars hotels
launches the “Smart Hotel of
the Future with WeChat”
2016: Online booking
systems become fully
available through WeChat
2017: WeChat pay rolled out
online and on site in the hotel
in Las Vegas

1. Focus on Smartphone
Smartphone is the first source of contents and
service we think of in China as when travelling
abroad
2. Reach us in China
We are hungry of founding ideas and suggestions
when planning our journey abroad
3. Use our channels
We have everything on WeChat, use it!
4. Go above and beyond
The Welcome Chinese kit is a standard, we are
engaged by experiences, like you
Source: Digital Retex research, 2017
What Chinese
consumer want

NO BORDERS.
NO LIMITS.
GO FURTHER.

Qui sont les consommateurs
Chinois ?

Quelles sont leurs aspirations ?

Pourquoi achètent-ils Overseas?

Qu’achètent-ils dans le Retail?

“Local” Chinese Consumers?

Méthodes de Paiement en Chine

China Connect Mornings – Special "Mobile Payment & Fintech in China"

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Semelhante a China Connect Mornings – Special "Mobile Payment & Fintech in China"

Semelhante a China Connect Mornings – Special "Mobile Payment & Fintech in China" (20)

China Connect Mornings – Special "Mobile Payment & Fintech in China"