The expansion of Wirecard – A Key Landmark in Global Spread of Mobile Payments?

Brian Lawlor

Director of Sales and Business Development at Wirecard

Views 663

The expansion of Wirecard – A Key Landmark in Global Spread of Mobile Payments?

03.10.2017 04:45 pm

Statista expects that there will be a staggering 5.07 billion mobile phone owners worldwide by 2019.

This one huge number quite simply shows the overall potential market for mobile payments even in the short term.

Meanwhile Gartner has estimated that the global market for mobile payments will be worth $720 billion in transactions by the end of 2017, up from about $235 billion in 2014.

Yet currently the potential is far from fulfilled.  Juniper Research says that only 16.5% of smartphones in the US in 2016 were used to make a contactless payment that year. 

From many perspectives, mobile payments is still a new market. Apple Pay was only launched in autumn 2014, and Samsung Pay and Android Pay only two years ago. Each has only been introduced in a little more than 20 countries.

While the global spread of major mobile payments brands is at an early stage, the growth of mobile payment usage is being driven by regional and local service providers and, in countries where traditional banking and cards are less dominant, mobile payments are prominent.

An NTT DATA survey reported that 58 per cent of consumers in developing countries make mobile payments at least once a week, compared with only 39 per cent in developed countries, with Kenya and China leading in the active use of mobile.

The sheer size of the market in China is remarkable. According to consulting firm iResearch, China’s mobile payments reached $5.5 trillion, compared with America’s $112 billion market in 2016 – around 50 times less than China.

The market is dominated by Alipay and WeChatPay, which is linked to WeChat, the instant messenger mobile app, which has over 938 million monthly active users. An unusual feature of the mobile payments system in China is the way that a payment is made within a retail environment. Consumers go into the WeChat App, create a QR code, the retailers scan it and the payment is processed.

A landmark in the worldwide market has just been reached. Wirecard has brought WeChat Pay to Europe and will be discussing WeChat Pay with many retailers and other merchants at PayExpo Europe in London in October.

Brian Lawlor, Director of Sales and Business Development at Wirecard explains: “WeChat Pay has over 600 million active users – about 40 per cent of the Chinese market – and we aim to unlock this attractive market to European retailers. The average spending by each Chinese tourist when in Europe is €3000 – a great opportunity for business.

“Asian customers require a seamless retail experience, they shop online regularly, with technology being integral to their shopping habits. What is special about solutions like WeChat Pay and Alipay, which we provide both in Europe – is that their apps provide a whole shopping ecosystem. The result is that Asian users not only pay everywhere with these two methods, they get in addition personalised offerings depending on their locations. In conclusion, consumers buy most of their goods via these apps, they book cinema tickets and pay their bills as well as chat with each other. The concept of an ecosystem within one app is quite a new success model for Europeans.

“Our WeChat Pay solution for the POS is unique as we make the payment process the exact same here in Europe as it is in China. It is very fast and convenient and that’s why it works. 

“This solution means that Chinese visitors in Europe can pay how they are used to back home. For example, they get personalised offerings via push notification from participating merchants in at their current location. As soon as Chinese tourists land in Europe, they can just start shopping!”

Frank Lavin, CEO of Export Now, the leading operator of China e-commerce stores for international brands, recently highlighted the importance of being ready with electronic payments systems for Chinese customers when he wrote in Forbes magazine.

“China is today the most cash-free of any of the world’s major economies – and that trend will continue.”

Brian Lawlor, Director of Sales and Business Development at Wirecard, is contributing to a panel discussion titled ‘Tablets, phones, laptops, is challenging technology overtaking cards?’ at PayExpo Europe 2017, taking place 4 & 5 October at London’s ExCeL.

For more information, please see www.payexpo.com/europe/welcome

Latest blogs

Breana Patel Bonova Advisory/Risk & Regulatory Advisory

Crypto Firms Excel in Technical Expertise But Have Little Understanding of Risk

Crypto Firms have great technologies that address a lot of challenges and open up an entire new world of doing business. In conversation with CoinFi's CEO Timothy Tan about how regulations and risk management will be a competitive advantage for Read more »

Angus Burrell AltaPay, a Valitor company

Meeting customer demand - striking the right balance

Businesses run on balance sheets – where assets and liabilities are held in equilibrium. If a business wants to invest in one area, it must generate the resources from another. If the balance is out, then the business simply can’t work. The analogy Read more »

Brandon Li Austreme

Brand Protection: Combating Online Counterfeit with AI

Online sales of branded and luxury items have been rising drastically, in the recent decade. While all the brands are investing big money on establishing online stores, organizing marketing campaigns and doing all the operation enhancements, on the Read more »

Javid Khan Pulsant

Using Cloud to Relieve the Compliance Burden

A recent survey of more than 360 enterprises revealed that 86% are dealing with the complexity of multiple types of data and/or data-related processes subject to privacy and security compliance requirements. Just 61% say that their organisations are Read more »

Lina Adolf-Orup Fingerprints

Fingerprint on the Pulse: Biometric Payment News

It’s quite hard to believe that we’re already entering Q4. For the biometrics industry, it’s been a unique and exciting year – one marked largely by its increasing convergence with the world of payments. For payments and biometric lovers alike, it Read more »

Related Blogs

André Stoorvogel Rambus

What is Card-on-file EMV Payment Tokenization?

The way we pay is changing. Consumers are now using their PC, smartphones, wearable devices and even cars to buy goods and services. The size and value of the card-not-present (CNP) market is increasing exponentially as payment use-cases across e- Read more »

Paul Sweetingham DXC Technology

Eight Must-haves When Choosing a Cards and Payments Services Provider

There are so many factors to consider when a business starts looking for a cards and payment services provider.  The new kids on the block, fintechs and start-ups, are challenging the norm, bringing technological customer expectations with them – Read more »

Jens Bader MuchBetter

Despite recriminations, the UK Government is far from faultless over Visa crash

On Friday 1st June, an undisclosed ‘hardware issue’ at Visa left millions of people unable to pay for goods and services in the UK and across Europe. A cross-party group of MPs has since spoken out and demanded answers from Visa, but it begs the Read more »

Ruben Salazar Visa Latin America and the Caribbean

Why Do Fast Transfers Work Better within Payment Networks?

Financial authorities and regulators around the globe are looking for new fast payment solutions. International card payment networks like Visa are already offering and expanding these solutions. Fast Transfers in payments networks are transactions Read more »

Center for Financial Professionals Center for Financial Professionals

The evolving payments landscape: Increasing competitiveness and upcoming regulatory deadlines

In recent years the payments landscape has evolved and transformed, in the near future it seems likely to continue to do so. 2018 is being seen as a watershed year in terms of regulatory implementation deadlines across the financial services space Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App