Yang Qianqian takes her smartphone out scanning a barcode of a vendor on the handset selling fresh vegetables and fruit in Beijing at a busy outdoor market.
The dance student is a fraction of a bang in the utilization of mobile transaction platforms in China. This is due to the fact that users more and more take out smartphone as an alternative of cash to pay for all, right from a language class to a coffee or a gas bill.
“Although I have money with me it is not suitable to get it when I am travelling with a lot of luggage,” claimed Yang to the media in an interview. Yang, who is 25, said this to media holding plastic bags full of potatoes, pears, and watermelon. China was the first nation in the whole globe to utilize paper money. But years later, the towering fame of mobile transaction has some experts predicting that it might be the first to end use of paper money.
The GMV (Gross Merchandise Value) of 3rd party mobile transaction increased to $5.6 Trillion (about 38 Trillion Yuan) to more than 200% in 2016 from a year ago, as per China-based iResearch. The development of the cash-less system has been backed by rapidly expanding e-commerce market of China since users in China avoid bricks and mortar shops.
“I believe it is actually very possible that China turns out to be the first or one of the first cash-free civilizations in the coming years,” claimed a director at China Market Research Group, Ben Cavender, to the media in an interview. Cavender guesstimates that mobile transaction market of China is already 40–50 times bigger as compared to that with the U.S.
Alipay and WeChat Pay have millions of customers between them. Alipay was commenced by e-commerce major Alibaba and is now possessed by its associate Ant Financial. WeChat Pay is built into popular messaging service of Tencent. Both of them are dominant transaction platforms of China. Stallholders show barcodes at the fresh produce market on tables loaded with vegetables and fruits for users such as Yang.