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> because of fairly special market conditions and lack of regulation in China. On the contrary, China has very tight (if not most) financial regulations. E.g.
by est 9y ago
> because of fairly special market conditions and lack of regulation in China.
On the contrary, China has very tight (if not most) financial regulations. E.g. oversea transaction above ￥10,000 need to be reported to central bank.
IMHO The secret factor of mobile payments boom in China is infrastructure.
Central bank completed near real time cross bank clearing system decade ago. It requires very low fee, has no tech debt like the US. For example, the ACH works by uploading files to FTP and has at least one day delay. In China, it only costs few seconds with 0 fee. Internet giants (网联, Nets Union Clearing Corporation) are in the same position as banks (银联, Unionpay)
- westiseast 9y agoYou’re talking about strict regulation of cross border payments, which isn’t a market that ecommerce and mobile payments really operate in at all. Bank infrastructure has been a minor factor at best in the adoption/explosion of mobile payments - we’re talking about Wechat and Alipay basically.
- est 9y ago> cross border payments, which isn’t a market that ecommerce and mobile payments really operate in at all Mobile payments are starting to gaining traction in southeast asia. The market is like mainland china 5 years ago. > we’re talking about Wechat and Alipay basically Wechat and alipay both has bank level clearing. Very few people "get" that.