Going straight to the “eliminate†cash target, mobile payment has become one of the mainstream payment methods in China, and it is necessary to go overseas after buying and selling. On May 4th, WeChat Payment announced that it officially entered the United States, and completed the landing of 15 countries and regions to support direct settlement of 12 foreign currencies. At the same time, Alipay has also spread in more than 70 countries and regions. The tight layout looks like the scenery, but the overseas market is facing many obstacles.
Service "self"
It is reported that the WeChat payment entered the United States, through the partner CITCON, with the Baymont Inn and Suites in Anaheim, California, adjacent to the Disneyland and the southwest coast, the Fisherman's Wharf Hana ZEN Japanese Restaurant in the San Francisco Bay Area, and the San Francisco Bay Area Nobel Luggage at Les Great Mall and Tbaar Tea Bar in New York, Skydive Saipan in Saipan, and Sandy City Ski Training Camp in Oregon.
WeChat Pay also cooperates with WE Housing to provide the most detailed and reliable apartment information for international students who have lived in the United States for a long time, as well as exclusive discounts that can be collected at any time to help international students get first-hand information on renting, thus making a better transition. And integrate into the United States to study abroad.
WeChat said that as the United States increasingly becomes a popular destination for Chinese tourists, the future people in the United States can enjoy the convenience of WeChat payment. In the United States, all food, clothing and housing can be settled in RMB.
In 2016, China's mobile payment market reached 2.9 trillion US dollars, a 20-fold increase in four years. At the same time, research data from two consulting companies, iResearch and ForresterResearch, said that the size of China Mobile's payment in 2016 was about 50 times that of the US.
For the details and long-term planning of WeChat payment into the US, WeChat personnel said that there is no other information to disclose, and will announce the relevant issues and strategies in the near future. "WeChat payment will continue to deepen the expansion of overseas markets." The Commercial Daily reporter said. Alipay has also announced its presence in Russia through Russia's Modulbank, which is currently available in more than 70 countries including the Philippines, Japan, South Korea, India and the United Kingdom. Similar to WeChat payment, Alipay also chooses shopping malls, duty-free shops and other tourist gathering places for layout.
Going to the sea
It is understood that both WeChat payment and Alipay have a third-party payment license issued by the central bank, which can operate Chinese user payment services in compliance. However, there are still two ways to do business overseas, one is to cooperate with local banks and merchants; the other is to buy a local payment company. In March of this year, Alibaba led a new electronic company of Paytm, an Indian payment company. In the business sector, the shareholding ratio rose to 62%, becoming the majority shareholder of Paytm. In addition, Ant Financial’s acquisition of the US electronic payment company MoneyGram has been approved by the board of directors of the MoneyGram.
Xue Hongyan, a senior researcher at Suning Financial Research Institute, said that at present, domestic payment giants are expanding overseas payment services. In terms of regional and scene layout, the strategy of following cross-border users and international students is mainly adopted, and priority is given to the destination areas of domestic tourists for cross-border travel. And focus on expanding trading scenarios such as airports and shopping centers. In addition, in order to meet the compliance requirements, the business is mainly carried out by acquiring a local payment company or cooperating with a local payment institution.
The industry believes that corporate cooperation with overseas merchants is more to cover the scene of Chinese tourists, which is equivalent to copying their success in China, saving time and effort. Zhang Dayong, director of Alipay's Southeast Asia region, also said that after entering the overseas market, there is a lack of deep understanding of the needs of overseas consumers and market rules, which requires partners to jointly develop.
Nuggets
In 2016, China's mobile payment market reached 2.9 trillion US dollars, which has grown 20 times in four years.
The scale effect plays a vital role in mobile payment companies. For this reason, the oligopoly structure dominated by Alipay and Tenpay has been formed. The domestic market is eating out and the Nuggets are an inevitable choice. But at the same time, it faces many challenges.
Xue Hongyan believes that the payment companies go to the sea, mainly face the following problems: First, compliance issues, generally through cooperation with agents with payment qualifications; second, fraud risk prevention and control issues, many common domestic defense measures The overseas is ineffective and needs to explore new solutions. The third is the profit problem. Compared with domestic payment, the cross-border payment business volume is small, and it involves the agency service fee, exchange rate conversion and other additional expenses, and faces short-term profit. The fourth problem is how to penetrate the local mainstream consumption scenarios and the problems of local users.
Earlier, the Bank of Thailand issued a warning to WeChat payment that WeChat payment was not authorized in the Thai business and reminded merchants to use it cautiously; Alipay has also been warned by local financial regulatory authorities in Taiwan, China. Suspect.
More importantly, whether it is WeChat payment or Alipay's overseas strategy is to start with the Chinese outbound population, it is difficult to "catch up" the local population. According to a survey of young people by the US consumer finance website LendEdu, only about 14% of people use mobile payment software frequently, and 35% never use mobile payments. Whether the future involves competition with overseas companies is not mentioned, and the nature of overseas markets remains questionable.
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