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China Connect Mornings – Special "Mobile Payment & Fintech in China"

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"The Mornings", the new China digital cup of tea by China Connect.
The rendez-vous aims to address some highlights of the Chinese digital business calendar, with the participation of the best experts.

January 24 2018/ The guests are:
- Andrea GHIZZONI, Director Europe TENCENT International Business Group (UK)
- Gilles BRABANT, Head of Sales (France & Italy), INGENICO EPAYMENTS
- Matthieu Le LOUER, VP Client Payment Systems, ACCORHOTELS

Published in: Mobile
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China Connect Mornings – Special "Mobile Payment & Fintech in China"

  1. 1. ChinaConnectEU chinaconnectforum.com Jan 24, 2018 Mobile Payment & Fintech in China
  2. 2. @ChinaConnectEU chinaconnectforum.com Prologue
  3. 3. @ChinaConnectEU chinaconnectforum.com
  4. 4. @ChinaConnectEU chinaconnectforum.com Big Banks loosing ground to China’s fintech giants
  5. 5. @ChinaConnectEU chinaconnectforum.com World’s No.1 Money Fund shakes financial institutions Alibaba’s Yu’e Bao « Leftover treasure » has accumulated about 325M Chinese users since launching in 2013
  6. 6. @ChinaConnectEU chinaconnectforum.com Online cash lenders cash in « In a country that lacks reliable ways to tell who might be a good borrower, these lenders use AI and oddy personnal data - like tracking how fast prospective borrowers type on their phones – to determine who will pay them back »
  7. 7. @ChinaConnectEU chinaconnectforum.com No cash ? No problem Towards a wallet-free society A Wall Street Journal 10 minutes video
  8. 8. No Cash Day / Cashless Month since 2015 Cashless Week Started Summer 2017 74% say they can survive up to 4 weeks with only 13€ in cash Win in-app rewards ranging in value from about 10 cents to $700. @ChinaConnectEU chinaconnectforum.com
  9. 9. « You know you’ve gotten BIG when the central bank worries about your promotional activities » @ChinaConnectEU chinaconnectforum.com
  10. 10. @ChinaConnectEU chinaconnectforum.com « Online payment: the fourth revolution » Sébastien Bazin, CEO AccorHotels
  11. 11. @ChinaConnectEU chinaconnectforum.com Trump says NO
  12. 12. @ChinaConnectEU chinaconnectforum.com Context & Trends
  13. 13. @ChinaConnectEU chinaconnectforum.com Openess to try tech finance products
  14. 14. China’s shift to smarphones Source: GSMA @ChinaConnectEU chinaconnectforum.com Smartphones as % of all phones in China
  15. 15. @ChinaConnectEU chinaconnectforum.com Fueling China’s mobile payment success Chinese consumers much more comfortable shopping on their mobile phones vs U.S. Less resistance from other legacy payments methods like credit cards Open approach to mobile shopping fortified by Alibaba marketplaces, and WeChat go-to messaging platform, which support Alipay and Tenpay Leverage their customer base to enter the e-commerce business Chinese outbound tourists projected to exceed 200M in 5 years from the current 110M WeChat Pay/Alipay/UnionPay intensify expansion Mobile commerce Lack of legacy infrastructure Marketplaces Social Media Platforms Chinese travelers abroad
  16. 16. Single’s Day Mobile shopping share @ChinaConnectEU chinaconnectforum.com
  17. 17. @ChinaConnectEU chinaconnectforum.com Smile to Pay
  18. 18. @ChinaConnectEU chinaconnectforum.com
  19. 19. @ChinaConnectEU chinaconnectforum.com Facial recognition to pay: on its way to be mainstream
  20. 20. @ChinaConnectEU chinaconnectforum.com QR Codes Are The New Cash
  21. 21. @ChinaConnectEU chinaconnectforum.com Platform agnostic Easy to use Inexpensive Ubiquitous Users unlock their phone and click on an icon to show an auto- refreshing QR code that can be scanned by the merchant. Over 600 000 merchants accept Alipay payments. On a promotional day where WeChat charged no merchant fees for using its network, 700 000 accepted WeChat Pay in China. Both Alipay and WeChat pay apps work across the Android and Apple iOS platforms, which account for 99.3% of China’s smartphone market in urban areas. Users make transactions for free and receive points that can be exchanged for gifts or credit. On average, merchants pay 0,6% to process digital payment transactions through WeChat Pay or Alipay. Why QRcodes are catching up
  22. 22. THANK YOU @ChinaConnectEU chinaconnectforum.com « Less than 0.1 sec to pay a bill » WeChat first unmanned store in Shanghai, opened Jan 20, 2018
  23. 23. Mobile payments skyrocket through non-banks services @ChinaConnectEU chinaconnectforum.com Sources: Tencent, Ipsos – RDCY Summer 2017
  24. 24. @ChinaConnectEU chinaconnectforum.com Sources: Tencent, Ipsos – RDCY Summer 2017 ... and exceed 50% across all retail sectors
  25. 25. @ChinaConnectEU chinaconnectforum.com Key Figures
  26. 26. @ChinaConnectEU chinaconnectforum.com FUNCTIONALITY PAYMENT Alipay Tenpay, WeChat Pay Baidu Wallet 1qianbao JD Payment Xiaomi Pay LENDING Ant Micro Loan, Huabei Weilidai, Renrendai Baiduxiaodai Changyi, Puhui JD IOU BANK MyBank WeBank Baixin Bank PingAn Bank INSURANCE ZhongAn Insurance, Cathay Insurance ZhongAn Insurance BaiAn Insurance PingAn Insurance, ZhongAn Insurance JD Insurance SECURITIES Tebon Securities Futu, Huatai PingAn Securities Tiger Securities WEALTH MANAGEMENT AND DISTRIBUTION Tianhong, Yu’E Bao, Ant Jubao Shumi Taojin 100 Index Howbuy.com, Licaiton Baifa, Baizhuan Lufax JD Xiaojinku Jijinbao, Huoqibao CREDIT SCORE Sesame Credit Tencent Credit Qianhai Credit CROWDFUNDING Taobao Crowdfunding, Antsdaq Tencent Lejuan PingAn Haofang JD Crowdfunding Duocaito Chinese Digital Finance Platforms Key functionalities
  27. 27. @ChinaConnectEU chinaconnectforum.com Source: Better Than Cash Alliance Digital payment growth in China Alipay Tenpay
  28. 28. @ChinaConnectEU chinaconnectforum.com Source: eMarketer, Nov 2017 Proximity Mobile Payment Users and Penetration in China Note: ages 14+; mobile phone users who have made at least one proximity mobile payment transaction in the past 6 months; includes point-of-sale transactions made by using mobile devies as a payment method; excludes transactions made via tablet; exclude Hong Kong.
  29. 29. @ChinaConnectEU chinaconnectforum.com “JPMorgan every year, as we speak, processes through our QuickPay, 94M payments. But Tencent over Chinese New Year, in five days, processed 46B payments. Basically that means 800M payments per hour. Visa has a maximum capacity of processing 25,000 payments per second. But Alipay can process 50,000 payments, twice as much, per second » Jing Ulrich, vice chairman Asia Pacific JPMorgan Chase August 2017 – Rise conference/HK
  30. 30. @ChinaConnectEU chinaconnectforum.com Key Players
  31. 31. @ChinaConnectEU chinaconnectforum.com SERVICES CHINA UNION PAY Devices supported All smartphones, tablets and computers Most smartphones All smartphones, tablets and computers Financial services offered • Money transfer • Bill sharing • Bill payments • E-commerce payments • Mobile balance top-up • Bank account balance check • Hotel booking • Purchase tickets • Money transfer • Bill payments • E-commerce payments • Access to wealth management funds • Mobile balance top-up • Taxi ordering • Hotel booking • Purchase tickets • Withdrawing cash from ATM • Credit card consumption on POS • Bill payments • Card repayments • E-commerce payments • Purchase tickets • Hotel booking • Money transfer • Reissuing new cards • Tax refund in 36 countries • Issue receipts • Promotions or coupons from merchants • Pay Tax balance Currencies supported 18 Major ones Almost all Transaction charges Only on withdrawals at a rate of 0.1% per transaction over RMBY20,000 (US€153) Only on withdrawals at a rate of 0.1% per transaction over RMBY1000 (US$153) Most of the consumers’ transactions are free, CUP charge fees for ordinary merchants at a rate of 0.7% fixed for bank, 0.1% for CUP Services mapping
  32. 32. @ChinaConnectEU chinaconnectforum.com Alipay leads in featuring financial products
  33. 33. @ChinaConnectEU chinaconnectforum.com Alipay vs WeChat Sources: techinasia; DMR MAU, in millions
  34. 34. 53.7% 520M users Launched 2013 39.3% 600M users for WeChatPay +980M for WeChat @ChinaConnectEU chinaconnectforum.com Launched 2009 Source: Analysys Market share Q3 2017 …WeChat is playing catch up on payment
  35. 35. @ChinaConnectEU chinaconnectforum.com The explosive rise of virtual hongbaos exchanged on CNY's Eve highly contributed to the fast growth of WeChat Pay
  36. 36. Source: Analysys Market share Q3 2017 Alipay WeChatPay Others @ChinaConnectEU chinaconnectforum.com …WeChat is playing catch up
  37. 37. @ChinaConnectEU chinaconnectforum.com Mobile Payments by Valuemobile payments, billion USD
  38. 38. @ChinaConnectEU chinaconnectforum.com
  39. 39. @ChinaConnectEU chinaconnectforum.com
  40. 40. @ChinaConnectEU chinaconnectforum.com Use of WeChat for payments has grown faster than the usage of the platform itself
  41. 41. @ChinaConnectEU chinaconnectforum.com Interview AccorHotels – Ingenico – Tencent IBG January 2018
  42. 42. @ChinaConnectEU chinaconnectforum.com Exclusive Interview JD.com France – Tencent IBG January 2018
  43. 43. THANK YOU In partnership with @ChinaConnectEU chinaconnectforum.com Hosted by
  44. 44. THANK YOU @ChinaConnectEU chinaconnectforum.com SAVE THE DATES
  45. 45. THANK YOU Web: chinaconnectforum.com Twitter: @ChinaConnectEU Facebook: facebook.com/ChinaConnect YouTube: youtube.com/user/ChinaConnectEU LinkedIn: https://www.linkedin.com/company/china-connect Weibo: weibo.com/chinaconnecteu Youku: i.youku.com/chinaconnect LauredeCarayon @ChinaConnectEU chinaconnectforum.com
  46. 46. WeChat and WeChat pay WeChat pay as the cornerstone of an integrated strategy: approach and examples of end-to-end customer journeys on WeChat in China and in overseas markets
  47. 47. Agenda 2 WeChat and WeChat pay’s role in the Chinese digital ecosystem1 WeChat pay in a nutshell: how it works 3 Case examples in China and abroad
  48. 48. 980 MILLION Monthly Active Users
  49. 49. 65% of which were born in the ’80s or ’90s
  50. 50. 1+ Million WeChat Pay transactions… …PER MINUTE
  51. 51. Chinese New Year 2017 14.2Billion “hongbao” exchanged on WeChat in one dayFrom tradition… ...to social innovation
  52. 52. IT IS THE INTERNET REDESIGNED… ... BORN FROM INSTANT MESSAGING
  53. 53. 54 WeChat Pay Driving the cashless revolution
  54. 54. WeChat pay is replacing cash across China Fonte: Tencent, Penguin Intelligence E-wallet (i.e. WeChat Pay) Cash 95% 38% OFFLINE Payment tools of preference?
  55. 55. Through WeChat, the payment becomes a key element of the consumer journey, at the centre of online/offline marketing strategies
  56. 56. Stand alone solution § No need for system integration § PIN verified transactions § Dedicated hardware to either generate QRcodes or scan the one of the client
  57. 57. POS integrated solution § No need for additional/dedicated hardware § Full integration with POS procedures (e.g., no need to re-type the amount on the POS) § Possibility to generate QRcode or scan the one of
  58. 58. ONLINE § API based integration with Websites, MiniPrograms, Official Accounts
  59. 59. ADS in Cina Official Account/MiniProgram ADV Outbound QRcode in store WeChat Pay E-Commerce in WeChat Reach out to consumers in ChinaAttract themDrive them to storeEngage themManage transactionsNuture the relationship
  60. 60. Context A Hot Pot Chain in Singapore and Japan, Hai Di Lao added WeChat pay in 2017 When launched, after settling their bill via WeChat, each customer could redeem up to 2 red packets on WeChat. These red packets contain different cash prizes, up to RMB 888 Results Haidilao Japan experienced a growth of 25% per month in WeChat Pay usage for 7 months consecutively. Other Japanese businesse How Hai Di Lao Hot Pot boosted sales through WeChat pay
  61. 61. How Caesar hotels has integrated WeChat and WeChat pay across the whole customer journey 2015: Caesars hotels launches the “Smart Hotel of the Future with WeChat” 2016: Online booking systems become fully available through WeChat 2017: WeChat pay rolled out online and on site in the hotel in Las Vegas
  62. 62. 1. Focus on Smartphone Smartphone is the first source of contents and service we think of in China as when travelling abroad 2. Reach us in China We are hungry of founding ideas and suggestions when planning our journey abroad 3. Use our channels We have everything on WeChat, use it! 4. Go above and beyond The Welcome Chinese kit is a standard, we are engaged by experiences, like you Source: Digital Retex research, 2017 What Chinese consumer want
  63. 63. WeChat and WeChat pay WeChat pay as the cornerstone of an integrated strategy: approach and examples of end-to-end customer journeys on WeChat in China and in overseas markets
  64. 64. NO BORDERS. NO LIMITS. GO FURTHER.
  65. 65. Qui sont les consommateurs Chinois ?
  66. 66. Quelles sont leurs aspirations ?
  67. 67. Pourquoi achètent-ils Overseas?
  68. 68. Qu’achètent-ils dans le Retail?
  69. 69. Et le Tourisme?
  70. 70. “Local” Chinese Consumers?
  71. 71. Méthodes de Paiement en Chine

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