And the monthly number of new Apps that are downloaded by the consumers are around 1.2-1.6. According to eMarketer, 46% of respondents using one to five apps per week, whereas only 35% use six to 10. We use fewer and fewer Apps in smartphone now. Unlike other payments which has nothing to link the merchant with the app.How many Apps are there on your mobile phone? What do you think of an App that can combine Facebook, Whatsapp, Uber, Paypal, Instagram, Yelp, Expedia, Techcrunch and hundreds of small apps together? However, I have to said at lease Apple try to set something up. Not to mention that most of the ApplePay machines don’t work like they suppose to. Is seems easy but it actually don’t work as well as a credit card where you just swipe or now we insert the chips. If any of these steps goes wrong the payment is not going to go though. You phone has to be in a certain range to detect the machine’s RFID and then your phone needs to recognize your fingerprint. For Apple for instance, they choose to use RFID for payment system. Another major issue is that all these system don’t have a fast and easy offline to online system. Other than the competition and the lake of government regulation/support. It also don’t make any sense for user to download 4 or 5 different apps for different payment methods. It is impossible to have 4 or 5 different payment system in each store. Since every player in the game is trying to fight each other with different payment systems. In fact, as we all know in US they discourage monopoly. There are not much regulation going on within the payment sector in US. Unlike China, US government do not interfere with any of these business. Well, not everyone has an iPhone and not every store has the Apple Pay Machine. You may argue that Apple Pay has set up Apple Pay in some of the stores. Everyone tries to fight each other for the market shares online and offline and no one in the end got any of the pies. There is not one system that is populated though out the country. On top of that let’s not forget about the smaller players like SnapChat created SnapPay. Large franchise stores like CVS or Walmart trying to create their own payment system as well. Then there is Android Pay to compete with Apple Pay. For example, Google wallet, Apple pay in 2014, there is also Facebook pay, of course PayPal later on brought Venmo for 800M. In the next few years all these big players starts to roll out their own payment system. That start to gain attention from Facebook and Google and Apple. Venmo is really revolutionary in the sense that they targeted a social media perspective to help friends to pay each other. PayPal stay as an online payment tool for a lone time until Venmo was created by Andrew Kortina and Iqram Magdon-Ismail in 2009. We all know the first popular payment system is PayPal. Now, lets take a look at US payment system. Not to mention they are working with all the bank in China to link their service with them. So there is zero chance that another payment system will come into play. In fact, these two companies already cover overseas, some of the neighbor counties like Thailand, Vietnam. On top of that, They already late to the party since Alipay and WeChat pay already cover 100% in China. However, there is still the local government that they need to make a good relationship with. The other payment system can get approved by the central government as well. Which means all the other payment system are not so ‘legal’. They support Alibaba and Tencent to go oligopoly by setting they the approved payment system in China. Government in China really played a big role in cashless payment system. Most importantly, both have support from the local and central government. Both have an incentive with stable user base in China, both use the system for their own purpose at first then turn into a merchant tool. Both of these payment systems have common grounds.
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