The advancement of technology and the rise of the digital age have brought about software that allows users to make payments with the help of a button or an app on their mobile phones. Payment apps are apps that offer payment services operating under financial regulation. This mode of payment has been adopted across the world due to the ease and convenience that users get from them. All kinds of financial services can be accessed from these payment apps, like transferring money from one account to another, checking your balance, making payments, etc. Users can either deposit money into the payment app or link their bank account to the app to use the services as an interface.
How do payment apps work?
Payment apps make use of software that provides a safe and secure platform for making payments. By encrypting personal information, payment apps allow users to make actual money transactions without the fear of losing money. Before making any money transactions or payments, users can deposit money into their payment app account or link their bank account to the payment app. Once enough money is available to make the transaction for the required amount, users can click a button to finalize the money transfer from one account to another. These apps allow users to get the transferred money directly into their bank account or to their payment app account.
Chinese payment apps
Cash transactions in China are slowly dwindling thanks to the increase in popularity of the payment apps. Here, a major part of the population makes their payments or money transactions from two major payment apps. These are Alipay and WeChat Pay. Let us look at some of these payment apps in China below:
Alipay is a leader in payment apps with over 1 billion users. This trusted app is used by many to make easy and quick payments online. With features for protection of privacy, payment security, reimbursement of unauthorized transactions, quick response times, etc., a large portion of the Chinese population looks to this app for most money transactions.
2. WeChat Pay
WeChat Pay is another common mobile payment app used in China. Millions of users have this app to make instant online payments. It has features that offer more protection with face recognition software and allows users to connect their bank accounts to the app.
Developed by a Chinese company, Tenpay has also become increasingly popular in China. This app has features that are advantageous for merchants as well as customers. These features include low credit card coverage in markets, low risk of returns, accepts payments from all kinds of sources, including credit cards, trusted security and privacy features, simplified shopping features, etc.
4. China UnionPay
UnionPay is an international payment app that encourages mutual benefits through membership schemes. It allows international money transactions to be made, online payments and services for studying abroad, global assistance, Visa applications, etc.
How are payment apps in China evolving?
The popularity of using smartphones by users in China and all around the world has led to the growth of e-commerce as well as m-commerce. The quick and straightforward money transactions and payments that can be made using payment apps have made it more convenient for users everywhere. The country has a large usage of QR codes for making all kinds of payments and transactions. These codes are being incorporated into payment apps as well to further make payments easier and faster. The adoption of QR code scanners onto payment apps in China has evolved online payments in the country and has paved the way for making payments easier and faster.
Benefits of payment apps
1. Make convenient payments–
By using a mobile payment app, users do not have the need to carry cash or credit or debit cards with them. Any kind of payment for products, services, etc., can be paid for by using a mobile app. This makes it more convenient for users.
2. Higher security–
The use of payment apps gives users higher security from the lack of carrying cash or cards. This will lower the risk of getting money stolen. The encryption software in the mobile apps also enables users to make cashless payments in-store without providing any of their banking information.
3. Faster payments–
Users can make contactless payments with the help of payment apps. This will make any payments more time-efficient as payments can be made by simply clicking a button on a mobile device.
4. Digitalized transactions–
With the growth and popularity of technology, multiple stores all around have started providing payment app facilities to customers. This enables users to make digital payments while being able to track all the money that is spent.
The benefits received from payment apps have made them very popular all over the world and more so in China. China has adopted ways to make payments more efficient, convenient, and less time-consuming. This has allowed app developers to come up with new ways to slowly upgrade payment apps by adopting similar strategies used in China.