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Translated Article of the Week: New Battleground for Mobile Payment Solutions

Since paying with mobile phones has become the new normal at supermarkets and for take-outs and taxis, public transportation is the next industry mobile payment solution providers compete on. The current public transportation payment solution, Metro Card, is not convenient enough and has plenty room for improvement in terms of users’ needs, which opens up opportunities for the penetration of mobile payment solutions. Other than convenience, compared to Metro Cards, swiping mobile phones is also faster.

Each year there are 90 billion passengers traveling by bus and subway in China, estimated by China UnionPay. The high demand of metro payment solutions makes it a cake that a lot of companies want a bite on. Given that there isn’t a dominant player yet, it is an opportunity for companies that didn’t catch on the mobile payment trend earlier.

On September 26, 2017, China UnionPay announced its partnership with ApplePay and Guangzhou Metro. Passengers who connected their UnionPay cards with the flash pay function to ApplePay will be able to swipe their phone to enter subway stations. The experiment started with 6,000 stations in Guangzhou and is a big step in building a smart transportation system at a national level.

In addition to China UnionPay, Internet companies, including Tencent and Alibaba are also making progress in building their presence in the massive public transportation market.

According to China Internet Network Information Center, by the end of June 2017, 502 million Chinese consumers have used mobile payment solutions, 67% of the total Internet users in China. The public transportation system will attract even more mobile payment users because of the high demand and high usage of metro payment solutions.

Source: Sohu News