Alipay Is Shaping Chinese Consumers’ Digital Lives

Vanessa Zeng

On December 8, Alipay celebrated its 10th anniversary by launching the latest version of its digital wallet. What makes this upgrade different and notable is its “10-year statement diary” feature. The statement diary contains data like when a user first made a purchase on Taobao, opened a Yu’ebao account, created an Alipay wallet, hailed a cab using Kuaidi Taxi, and followed a service window. Not only do these 10-year statements record every Alipay customer’s consumption experience, but put together they also trace the rapid development of online payments in China.

Alipay data indicates that, in the past 10 years, Chinese people have made 42.3 billion transactions via the platform, which now handles more than 80 million transactions daily. More people than ever are shopping on their mobile phones: as of October, Alipay counted 190 million mobile app users, and the proportion of online payments being made via mobile devices has exceeded 50%. The four regions with the highest mobile-to-online payment ratio are China’s underdeveloped western provinces: Tibet, Shaanxi, Ningxia, and Inner Mongolia. In addition, the proportion of Alipay users coming from the younger generation is increasing: 32%of all Alipay users were born after 1990, so the new main force of online shoppers is just now coming into its own and will only get bigger.

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Selecting The Right Global Payment Service Provider For Your eBusiness Needs

Peter Sheldon

This is a guest post from Lily Varon, a researcher serving eBusiness & Channel Strategy professionals

Globalizing your eCommerce business isn’t just an option anymore — in many cases, it’s an imperative. But accepting global online payments is VERY complicated. It includes the transmission of sensitive financial information, an array of diverse payment methods, a long list of players in the transaction stream and many regulatory considerations. Add to the equation the increasing importance of mobile and the seamless user experience the consumer is demanding, and it’s enough to make even the most seasoned eBusiness professional’s head spin. So what are we to do? eBusiness professionals are often looking to partner with payment service providers (PSPs) to help manage and streamline these complex payment processes. But the PSP vendor landscape is crowded and highly competitive, leaving eBusiness professionals unclear of which PSP will best serve their needs.

Together with payments analyst Denée Carrington and commerce technology analyst Peter Sheldon, we just published a report to help eBusiness professionals navigate the maze of solutions and vendors at hand to help them meet the global payments challenge. Here are a few key questions eBusiness professionals should consider before signing on with any PSP:

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Why Visa’s V.me Digital Wallet Matters To eBusiness

Benjamin Ensor

I attended a briefing from Visa Europe yesterday, about its V.me digital wallet. Here’s what Visa said:V.me by Visa

  • V.me is more than a mobile digital wallet. Customers will be able to use V.me to make online payments too. It lets users check out at online stores using a one-click solution that remembers card details from multiple providers (including MasterCard and American Express cards) as well as billing details and postal addresses.
  • V.me is not just about mobile contactless payments. V.me will support a variety of ways to initiate payments including bar codes and QR codes, as well as NFC.
  • Visa intends to distribute V.me through its member banks, much as Visa cards are distributed today. BBVA will be the first issuer in Spain.
  • V.me is already in extended pilots in the UK and Spain to test the system and will launch formally in both countries soon. France will be next. V.me will start rolling out into stores in the UK next spring. Officially V.me will be available in France, Spain and the UK by next summer. (Visa Inc has already launched V.me in the US).
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Is It Time You Accepted PayPal?

Benjamin Ensor

We've just published some new research on online shoppers' payment preferences in Europe. Payment habits across Europe remain diverse, with shoppers in different countries using different, and sometimes entirely different, payment methods to shop online.

One of the findings that struck me most during our research was the growing popularity of PayPal. That PayPal is used by many online shoppers across Europe is well known, and partly explained by the success of eBay. What struck me as new is how many big European online merchants now accept PayPal, among them leading fashion retailers and airlines. Perhaps I didn't spot that sooner because the British merchants have been much slower to adopt than those in Italy, Germany, France and Spain.

The growing acceptance of PayPal raises questions for two groups of eBusiness executives: 

  1. If you work at a retailer or other merchant, is it time you accepted PayPal payments online?
  2. If you work at a bank or card issuer, what does the growing use of PayPal mean for your relationships with your customers?
  3. For both groups, what payment methods are customers likely to want as they start buying from tablets and mobile phones?

What do you think?

If you are a Forrester client, you can read the full report here.

Some Observations From Finovate Europe

Benjamin Ensor

For the past few years I have watched enviously as the Finovate online financial technology show has gone from strength to strength in San Francisco and New York. So I was thrilled to hear that Finovate was coming to Europe and today I was lucky enough to go along to the show in London.

For those of you who aren’t familiar with Finovate, it’s a fast-paced format with seven-minute live demos and pitches from 35 financial technology vendors. It’s produced by Online Financial Innovations, the people behind the excellent NetBanker blog.

The big themes were:

                Money management: Figlo; IND Group;  Linxo; Lodo Software; LoveMoney.com; Meniga; Strands Personal Finance; Yodlee.

                Security: Business Forensics; miicard; SilverTail Systems; SolidPass; Voice Commerce.

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