Chinese consumers are expected to adopt the method quite widely by 2015
As mcommerce takes off in China, it is leading to a number of other associated growths, such as in mobile payments, which are expected to continue their momentum to the point that they will be highly profitable as early as 2015.
A recent report has shown that although it is still just emerging in China, it will soon explode.
The mobile payments report was created by Deloitte & Touche, and demonstrated that although the Chinese marketplace for paying with smartphones has only just reached its infancy, and that its policies and technologies are still underdeveloped, along with application scenarios that remain limited, the next three years will bring about a massive change that will launch it into the mainstream.
The report showed that by 2015, mobile payments will become commonplace in China.
This prediction is supported by the various large partnerships that were made at the end of August, such as those made by PayPal and Square with McDonald’s and Starbucks, respectively. Both of these agreements were designed to make it much easier for consumers visiting the locations of these massive chains to be able to use their smartphones to make mobile payments for burgers and cappuccinos. Chinese consumers will soon be seeing a great deal more of this.
According Deloitte & Touche China’s senior manager of financial services, Li Jun, the development of the systems for mobile payments will not only provide more convenience for consumers, but it will also be highly advantageous for financial service agencies such as banks.
Li Jun explained by saying that “Banks that develop mobile payment services expand their business channels, raise their customer retention rates and improve their customer service levels, so I think mobile payments will enhance banks’ competitiveness.”
The primary hurdle which needs to be overcome before mobile payments become mainstream in mcommerce as well as brick and mortar shops, is to be able to prove that the security is tight enough to keep their financial and private data safe. This has been the same worry that has been keeping a lid on the expansion of the method all over the world, but it is expected to be adequately overcome within the near future.