China's QR-Revolution: How Asia is Pioneering the Future of Interactive Cities

During the past 3 years, China has been revolutionizing the way people live on a day-to-day basis. Companies such as Alibaba and Tencent have dramatically shifted the e-commerce landscape with apps that allow users to exchange currency with the simple scan of a QR code. With the explosion in popularity of services such as Alipay and WeChat Pay, the use of alternative payment methods has significantly changed the way people live in major cities, where the adaptation of the QR code system has become almost a necessity in order for a business to survive. How has a country, widely still considered an emerging market, been able to so drastically alter the way people live in less than a decade while many developed markets have been slow to adapt these new technologies and applications? 

Universal Application

Spending a month in Shanghai this past winter break, I opened my wallet only once when eating at restaurants, buying groceries, and visiting local shops and stores. The adaptation of online payment platforms through the use of QR codes has all but eliminated the need for physical currency and has turned one’s cellphone into the primary driver behind everyday transactions and commerce. 

Not only can people order food simply by scanning their phones at the register, but they can also use electronic devices to purchase gifts from both commercial stores and local shops. Additionally, some restaurants and cafes even include QR codes in their tables, where guests can scan, order, and pay – reducing wait times and increasing efficiency. 

Customers can order and pay for meals without interacting with waiters, increasing efficiency at many local restaurants (Source: Blockchain Entrepreneurs) 

Initially only used as an alternative payment method for a select few, the near universal application of QR codes has made digital transactions a widely adopted tool in major Chinese cities. From sending mail to buying tickets at a movie theater, the ease of QR codes has transformed the Chinese consumer lifestyle – a change that has yet to be matched by any other country on the planet.   

Need to Innovate

China has nine cities that contain urban populations north of 10 million, more than any other country in the world; among these are “megacities”, giant population and financial centers, Shanghai, Guangzhou, Beijing, and Shenzhen, each boasting a population size greater than 20 million. With so many highly populated regions that are continuously growing and becoming increasingly crowded, new technologies are required to improve day-to-day operations and account for rapidly expanding cities and economies. The widespread adaptation of QR codes and digital payment methods has allowed many smaller companies to address the issue of efficiency – local food markets and small business are able to serve more customers and utilize the growing smartphone market and population size to their advantage. 

 A local customer pays for an order at a noodle stand (Source: Asia Times)

While home to multiple financial hubs, one of the biggest challenges China faces is poor air quality due to huge population dense urban environments. All of China's megacities make the list of major Asian cities with PM 2.5 air pollution.

The PM 2.5 annual mean for Asia’s major cities (Source: The Guardian)

Cities such as Beijing, in particular, have seen pollution so bad that wearing a breathing mask throughout the day has become commonplace. The issue of air quality and pollution has spurred many to try and reduce carbon emissions by developing a greener economy. 

One of the most revolutionary developments as a result is China’s bike-share system, featuring a widespread network of rentable bikes at extremely low costs. In less than 3 years, major bike-share companies ofo and Mobike have transformed that transportation landscape in Mainland China, with Mobike alone operating more than 5 million bikes, boasting 100 million users that take north of 25 million trips per day at peak times. With trips costing only 1 yuan for 30 minutes, it has become not only an environmentally friendly, but also a cost-effective way to travel. 

Mobike proved to be the most cost-effective and efficient way to travel when I had to purchase groceries or travel around the city 

As with most services in China, ofo and Mobike are reliant on a QR system. All users have to do is scan the code on the bike, which unlocks it until the rider reaches their destination and locks the bike anywhere they choose. As a simple and innovative process, it has not only allowed bike sharing to explode in popularity in China, but has also encourage investment north over $300 million for Mobike and $450 million for ofo in 2017 with the goal of expanding to cities worldwide, such as Seattle, Sydney, Paris, and London. The desire to improve air quality and encourage a healthier lifestyle has led to the creation of a system of transportation that has revolutionized major urban cities in not just China, but soon across the world - and its all built upon the QR system. 

Digital Future

As the future becomes increasingly digital, the development of new technologies and improvement of existing ones will be essential in broadening the consumer landscape as well as increasing business efficiency. The recent introduction of Amazon Go, Amazon’s new automated grocery store, demonstrates that companies are not only interested in reducing the complexity of performing everyday tasks such as shopping, but they are also interested in utilizing machine learning and customer tracking to enhance the user experience.   

Beyond grocery shopping, the use of QR codes has additional applications, such as for transportation and entertainment. While stores such as Amazon Go will likely revolutionize the American shopping experience, the technology has not been widely applied to other industries yet.

While China’s QR system still requires users to actively transfer money from their phones, the process is widely applicable to functions beyond shopping. As urban centers around the world become increasingly populated, the use of technologies that increase efficiency and allow for a simplification of daily operations will allow for the creation of more sustainable and habitable cities in the long run.

Final Thoughts

China, along with many other countries in Asia, has been able to adopt and improve an existing technological system to enhance the lives of millions. In part due to a necessity to address growing environmental and overpopulation concerns, the investment in the QR system has created a network of interactive cities where residents are capable of operating with a smartphone alone, improving both everyday efficiency and overall quality of life. As many businesses are increasingly investing in digital infrastructure, alternative payment methods and systems such as QR remain widely applicable and relatively untapped beyond Asia. 

The continued expansion of urban areas will lead to the creation of more and more megacities in the future, in which case sustainability will ultimately be dependent upon the city itself.

So, the technologies that enhance user experience?

They will be the key to unlocking the cities of the future.

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Erwen (Alex) Zhu is a Junior at the University of California Berkeley and writes as a millennial voice for business, social media, entertainment, politics, and cultural impact.

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