Mobile payment growth potential, ApplePay boost NFC promotion

December 12, 2014, Alipay paid a substantial subsidy under the line, the offline marketing is seen as Ali promotion of mobile payment is an important means. Earlier, Apple introduced the ApplePay in September 2014 to effectively strengthen the user's remote payment habits, accelerate online trading funds from the PC to the mobile end of the transfer.

In the above two "catalysts" under the influence of the use of domestic communications technology for many years of construction, the vast popularity of smartphones, industrial Internet mobile payment in the field of large-scale applications has been opened!

Mobile payment growth potential

In recent years, benefiting from the development of China's low-cost smartphone industry, the rapid popularity of smart phones, mobile internet users increased rapidly. According to CNNIC statistics, as of the end of June 2014, China's smart mobile internet users up to 480 million, more than February 2013 growth of 150 million, in the mobile internet users accounted for 91.1%, smartphones have become the development of China's mobile network an important carrier.

In the background of the industry's software and hardware foundation tending to perfect, the number of mobile payment subscribers and transaction volume maintain high growth. According to the data released by Eric Consulting, in the second quarter of 2014, China's third party mobile payment market transaction size amounted to 1,383,460,000,000 yuan.

On the other hand, with the increase of people's purchasing power, the demand for payment is diversified, among which the young users in China show high stickiness in mobile payment.

The latest data show that 2013 Chinese netizens use mobile payment frequency difference is large, 28.3% of netizens use 1 to 2 times a month, accounted for the largest, the monthly use of 3~5 times of the user accounted for 24.5%, monthly use of more than 10 mobile payment users have 23.4%. From the age structure, the lower the age of use of mobile payments, the higher the number of users under 18 years old, the monthly use of more than 10 mobile payment of the proportion of 40.91%.

ApplePay Boost NFC Promotion

Mobile payment mainly includes long-distance payment and near-field payment. The long-distance payment refers to the user through the handset network carries on the payment, the account operation and so on, the near field payment is the handset through the radio frequency, the infrared, the Bluetooth channel, realizes with the vending machine, the POS machine and so on the close distance communication technology (NFC).

Domestic two-dimensional code payments and NFC is more popular, but for security reasons, the central bank since March 2014 warning two-dimensional code to pay business risk, nevertheless, the two main platform of the current micro-letter wallet and Alipay wallet support two-dimensional code, bar code payment, the actual application has not been affected. The core problem of mobile payment is the security attribute, because the NFC security attribute is higher than the two-dimensional code payment, so it is high expectation of the market.

Near-field payment channels include NFC mobile phones, Swp-sim cards, nfc-pos terminals and TSM platforms. Among them, NFC handset and Nfc-pos machine involve the hardware equipment renewal, constitute the most important channel construction cost. Early because of the cost is too high reason, NFC market promotion is criticized, but at present the near-field payment usher in a turnaround, the first is the long-distance payment channel construction finished, now the investment focus shifted to near-field payment; second, external factors drive Nfc-pos machine and NFC mobile phone promotion, resulting in a significant decline in channel

In terms of NFC handsets, Apple officially launched its revolutionary mobile payment system in September 2014, largely based on the ApplePay mobile payment standard. In addition, Huawei Mate7, the Phantom of the Mx4pro support NFC features, the continued sales of these models will stimulate other manufacturers to follow up the introduction of NFC handsets, NFC is expected to become the next generation of smart phones standard.

A brokerage industry analyst pointed out that the Apple admission, on the one hand will promote NFC for operators, banks and UnionPay to boost confidence, on the other hand, will force Ali, Tencent to accelerate the expansion of two-dimensional code payment and ecological construction, so the 2015 mobile payment industry is expected to explode growth.