5G, blockchain acceleration, the era of intelligentization, how to do the core axis of mobile payment?

It is said that technology changes life, so who is the technology that has changed the most in our daily lives in the past decade? If you organize such a selection, mobile payments must be able to get a lot of votes.

The business opportunities created by mobile payments have further spread to sinking areas

We may wish to review our day: buy breakfast from the pancake stall in the morning, take a taxi on the way to work, go to the office to use the take-out software in the afternoon to order afternoon tea, return to the home WeChat to pay the electricity bill in the evening, and send a red envelope to the birthday friend… almost Mobile payments are available everywhere.

Chen Jing, a member of the National Informatization Expert Advisory Committee and former Director of the Science and Technology Department of the People's Bank of China, pointed out that an important feature of China Mobile Payment is its wide application. It has covered all aspects of our clothing, food, housing, transportation, medical, entertainment, and social aspects. Almost all consumer services can be solved through the mobile payment ecosystem.

Mobile payment technology has maintained rapid development since its inception in China. The current market size is far ahead and continues to grow.

According to the China Payment and Clearing Development Report (2019) issued by the National Finance and Development Laboratory's Payment and Clearing Research Center, the scale of mobile payment transactions in China's third-party payment industry reached 207.1 trillion yuan in 2018, a year-on-year increase of 72.2%.

Soon, the Mobile Payment Trend Report, co-authored by China Newsweek and WeChat Pay, will also be released. The report mentioned that the average growth rate of mobile payment in the past five years was as high as 181%, and the proportion of the amount of electronic payment business continued to increase, from less than 1% in 2013 to 8.4% in 2017.

The increase in mobile efficiency to social efficiency is almost comprehensive. It doesn't need to be said that it brings convenience to our daily lives. What is worth mentioning is that it creates new value for many industries.

Before the birth of mobile payment technology, business could only be carried out online, and consumers and merchants handed over the money in one hand. Today, even if consumers don't have a store, business can start as well. You only need to place an order online, and the merchant will arrange for the rider to deliver the order to the door within 30 minutes or an hour. Especially in the catering industry, take-out orders have become the main source of orders for many stores, significantly increasing turnover.

The same changes have occurred in third- and fourth-tier cities and rural areas. In the past, after the agricultural products in the remote areas of Shandong and Shaanxi were mature, they could only be sold locally to local wholesalers. The wholesale price was only a few cents a pound. But now they have learned how to skip the middlemen and sell quality agricultural products all over the country. After the delivery fee is scraped, the same agricultural products can be sold for a few dollars, and the income level has been significantly improved.

These are obvious changes, and larger fusion is still brewing.

The new role of mobile payment is the traffic linker.

Huang Zhen, director of the Institute of Financial Law at the Central University of Finance and Economics, believes that one of the important values ​​of mobile payment is that it gives consumers a unified digital identity online and offline. This is an important basis for us to accelerate the world's online and online integration.

In the traditional e-commerce era, online and offline are completely two-disc business, and each other has strict barriers to each other. However, with the mobile online real-name authentication to give consumers the online and offline unified digital identity, this problem is solved.

More and more merchants are using Consumer WeChat's payment page to divert consumers to their own public numbers or small programs to achieve private domain traffic and the precipitation of user digital assets. Carrefour is one of the beneficiaries. Based on the high-frequency use of WeChat payment eco-wisdom management tools, it has successfully created a mature La New + Repurchase model. With the marketing tools provided by WeChat Pay, Carrefour’s sales have grown significantly over the past few months through marketing products such as code-collecting coupons, paying courtesy, nearby coupons, and friends’ vouchers.

Similarly, merchants can also direct online traffic to offline stores through online ordering and coupon-to-store coupons. In the third phase of “Small Program Multiplier Action” initiated by Tencent Smart Retail, Mengjie Home Textile successfully channeled 37% of online order customers to offline stores in this way. During the event, the store entered the store rate by more than 300%. The store flow generates a 40% order rate.

Mobile payment is not only a link between online and online traffic, but also a huge data collection channel. Based on the payment data generated by the massive users in the consumption process, we can accurately determine the consumption level of a city and the distribution of consumption in the major business districts of the city, and provide accurate data support for the location and selection of the business.

Now that our transactions have all been digitized, in the future, with the development of new technologies such as 5G, AIOT and blockchain, we will further realize the number of intellectualization. With these new technologies and applications, we can easily analyze the dynamics of goods and customers' consumption habits, and use data to guide upstream production and supply chain links to achieve C2F's intelligent business transformation.

More widespread changes occur offline. The 5G high-capacity feature allows merchants to install a large number of smart terminals in physical stores to perceive and identify goods and consumers. With the smart camera and the computer vision algorithm behind it, the merchant can clearly know whether the merchandise display on the shelf meets the requirements, and how many consumers who enter the store have completed the purchase conversion.

As people and commodities in the physical world are gradually completed online and digitized, as an indispensable link in the transaction, mobile payment and the unified digital identity behind it will become a key node for connecting the business and opening up the data of all parties.

Combined with new technologies such as blockchain, mobile payments are safer

At the same time, the development of new technologies such as 5G and blockchain will accelerate the evolution and iteration of mobile payments.

In the past two years, third-party mobile payment vendors, represented by WeChat payment, have begun to increase their face-to-face payment technology, with the face as the digital identity of consumers.

With the blessing of this technology, consumers will have more diverse payment options. At the same time, merchants can also save labor costs, greatly improve the efficiency of cashier collection, reduce the queuing payment during peak hours, and create a better shopping experience for consumers.

Take Tianhong WeChat, which opened in November last year, as an example of paying smart retail stores. With the help of smart retail tools, Tianhong WeChat pays smart retail stores with 85 mobile payment per 100 customers, including QR code, face payment and scan code purchase, etc., with a digital rate of 85%. The rate of conversion has also reached 50%.

It is not difficult to foresee that with the support of 5G high-rate and low-latency characteristics, the new mobile payment with biometrics as the unified digital identity will accelerate the popularization, and through the data of the member system, the world will be turned from digital to digital.

At the same time, the development of new technologies will provide more protection for the security of mobile payments, whether it is the security of funds or the security of user information.

As a set of technical systems that integrates existing technologies such as distributed storage, asymmetric encryption algorithms, time stamps, etc., and introduces the consensus mechanism of algorithm game theory, the blockchain has the characteristics that digital records cannot be falsified or unforgeable. Achieve data integrity, authenticity and consistency, making the digital world as authentic as the physical world.

Among them, blockchain payment can jump out of the traditional clearing settlement system, encourage users to use more convenient digital assets to purchase goods, thereby reducing costs; at the same time, in terms of smart contracts, it solves the problem of mutual distrust between buyers and sellers, through smart contracts. People can establish mutual recognition between each other.

In addition, by decentralizing and encrypting all downloads and uploads, blockchain technology can also help users with privacy protection. End-to-end encryption ensures that only senders and recipients can read the information between them.

Of course, the security of mobile payments depends not only on technology, but also on regulatory support. It must be acknowledged that the rapid changes in technological innovation pose enormous challenges to legislation. The hard law enacted by the legislature needs to be relatively stable, and it is difficult to keep up with changes in the times. However, some institutions that do not have enforcement power, such as the soft laws of standards, standards and conventions formulated by industry associations, also have certain binding force. Therefore, we can make better use of these soft methods to promote the development of the industry.

As a business owner, we must not only actively participate in the formulation of soft law, but also focus on the areas of pilot and sandbox supervision. The so-called sandbox supervision refers to piloting in some industries or fields, such as third-party payment platforms, which can be tested first and then issued after maturity.

Huang Zhen believes that with a more flexible policy environment, new technologies such as 5G and blockchain will upgrade the traditional society into a digital society. The mobile terminal will not only be limited to mobile phones, but will also develop various mobile devices.

"With these mobile devices, we can reflect the changes around us in real time through data, and it will be more than just smart retail, smart vehicles, but smart cities and smart worlds."

Source: Lei Feng Network (Public Number: Lei Feng Network), Babbitt Information is authorized to reprint.

Author: Liu Wei