Why do technology giants value mobile payments?

During this time, the technology media circle is rushing to pay for mobile payments. Why is mobile payment so important? Why are the giants pushing?

Let's first define the concept of mobile payment. Broadly speaking, payments made on mobile devices can be referred to as mobile payments. Mobile payment mainly includes: payment in mobile application, barcode payment, mobile card reader payment, NFC payment, operator bill payment, and the like.

The biggest difference between mobile payment and traditional online payment is that the use of mobile payment is more extensive and the market is bigger. This is the biggest reason why giants, especially online payment companies, have entered mobile payments.

Mobile payments stimulate impulse spending

Online e-commerce and line payments are the most relevant, as are mobile payments and mobile e-commerce.

Now more and more people are starting to shop on mobile devices, and the improvement of mobile payment will promote the development of mobile e-commerce. Take this year's double 11 as an example, the total transaction volume is 35 billion yuan, and the turnover of mobile phone Taobao has reached 5.35 billion yuan.

Compared with the use of computers, users often use mobile phones or tablet devices to relax in a more relaxed state, while in a relaxed state, users are more likely to generate impulsive consumption. If mobile payments cannot support the purchase at the time, there may be no impulse to buy when the user returns to the computer.

For example, bar code payment, the first store has launched a subway supermarket, users can purchase by scanning the QR code. This kind of brand + effect offline advertising can't be completed without the support of mobile payment.

Mobile payments can gradually replace offline payments

According to the annual report released by the China Internet Network Information Center (CNNIC) in April, in 2012, the transaction amount of China's online shopping market reached 1,259.4 billion yuan, accounting for only 6.1% of the total retail sales of consumer goods. Offline consumption is still far greater than e-commerce, while mobile payments can subvert the traditional offline consumer trading model.

One of the goals of Mobile Payment Square, founded by Twitter Chairman Jack Dorsey, is to make payments completely electronic. In the past, merchants required a POS machine to accept credit cards, but Square allowed merchants to use only one iOS device and one card reader to provide customers with credit card consumption.

From the perspective of consumers, the Youbao convenience store that cooperates with WeChat Pay is a typical example. The Youbao convenience store changed the original coin-operated purchase of the vending machine to a mobile payment method such as WeChat, which freed people from the trouble of bringing cash.

Although there are not many offline merchants that currently support Square payment or WeChat payment, mobile payment can completely replace these offline small cash and credit card payments, and provide mobile payment in terms of payment security and convenience. Companies can profit from it.

Mobile payment can be connected online and offline

O2O is a concept that comes with group buying, that is, online consumption but offline service experience. The most important thing about O2O is the formation of a closed loop, and payment is a necessary condition for the formation of a closed loop.

Although O2O does not necessarily require mobile payment, in many usage scenarios, especially after adding geographic location elements, mobile payment can give users the best experience.

Take the catering industry as an example. Nowadays, many group purchases support instant consumption without reservation. Users often use their mobile phones to find surrounding restaurants when they are ready to eat. Therefore, the user's O2O experience includes positioning, finding restaurants, booking, payment, eating, etc., but only after the payment is completed, the user and the merchant are actually connected.

For example, Wang Xing, the CEO of the US group, one of the largest group buying websites in China, revealed that 60% of the trading volume of the US group is currently completed on mobile phones. It can also be seen that mobile payment is of importance to the O2O field such as group buying.

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