Thursday, May 13, 2010

China leading the way in mobile payments after all?

I always enjoy reading about China and payments. This is without doubt the biggest market for electronic payments, and therefor for mobile banking. However, so many things about China are different to what I am use to: culture, business practices, language, macro- and micro-economies. The lessons that I have learned in deployment of mobile banking solutions would probably only have marginal applicability.

Yet, it seems as if China is really moving forward aggressively in creating an ideal environment for mobile banking to thrive. I am basing this on two recent articles that I have read on Finextra:

1. It seems as if a regulatory environment is being established to govern non-financial institution payment service providers (Read here). I think that this is particularly progressive in a number of ways. Not the least being the fact that recognition is given to non-financial institution payment providers. This recognition would enable (providing that they conform to the regulations) institutions, like network operators and regulators, to offer payment services.

2. According to another article, China Unionpay has signed up a group of the country's banks, wireless operators and handset manufacturers to form a mobile payments alliance. It is possible to think of many mobile payment alliances having been established in many countries, but being able to sign an alliance with both banks and operators being a party to such an agreement is relatively unique. (Read here). If this alliance is going to work well, the mobile banking deployments will definitely be stimulated.

Maybe we should take more notice of what is happening in China. Maybe some-one can point me in the direction of an expert that could speak at a next conference and enlighten all of us.

Also read a recent blog that I posted on China.

No comments: