Mobile payments continue to grow in China
Mobile commerce is making strong progress in China. A growing number of people are using their mobile devices to shop online and this is putting pressure on businesses to become more mobile-centric or risk being left behind by consumers. American Express has announced its partnership with China Mobile, the largest telecommunications company in China. Through this partnership, the two companies will work to promote Hebao, an NFC-based mobile payments system.
Hebao functions as a digital wallet, storing financial information and data provided by merchants. The platform can be used to make a mobile payment and is designed to be used by those that want to shop outside of China. Within China, the number of mobile payment systems is growing rapidly, leading to extreme market saturation. The market outside of China is crowded, but somewhat less competitive. Chinese consumers traveling to other countries may find Hebao quite useful, as it is not designed specifically for the Chinese market.
China Mobile wants to see $164 billion processed through Hebao within five years
Users will be able to add funds to their American Express accounts through Hebao, which will allow them to make mobile payments while abroad. China Mobile expects to see more than $164 billion processed through Hebao within the next five years. Depending on the success of the service, Hebao may also attract the support of China’s banks, making it easier for consumers to make mobile payments through the service.
China continues to thrive as a mobile commerce market
China is currently considered one of the world’s most active mobile commerce markets. High smartphone penetration among consumers has lead to a high demand for mobile payment services. Thousands of startup companies have sprung up in order to satisfy this demand, but it is typically large, well established companies that find the most success. The growing popularity of mobile commerce has also encouraged businesses to form strategic partnerships with one another in order to take advantage of the growing mobile market.