QR Code Payments: The Chinese Revolution

In 2017, the number of payment made through mobile exceeded $100 trillion. Topping the list, China leaves no room for competition.

The Chinese craze for mobile payments has no limit. In China, more than 688 million of people have already used WeChat to send “hongbao” (red envelopes filled with money that are traditionally sent during the Chinese New Year) through the app.

Some statistics. Transactions made via smartphone amounted to 81 trillion yuan, or 10.3 trillion euros in the first ten months of 2017, compared to 59 trillion yuan generated during the previous year. In the same year, mobile payments rose 180 percent in China according to research firm QuestMobile, with 78 percent of all of the country’s transactions completed by mobile device.

How can mobile payments be used? To pay for purchases on the internet, pay water and electricity bills, or to book a taxi or a bike-sharing services. Even at the produce market, transactions can be completed by scanning a QR code that is unique to each individual user.

What are the main mobile payment platforms? WeChat (Tencent) and Alipay (Alibaba) have been fighting for a monopoly for almost a decade.

The online finance sector is also on the rise with 129 million Chinese people already investing in financial products on the internet. An important sector to consider in order to continue shining like the Eiffel Tower in the world.

Chinese mobile payment on track to conquer the world – and RATP is in on it, too

In 2018, the WeChat app has passed the billion-user mark worldwide. WeChat, in figures, has 570 million users and has 69 percent of the Chinese population connected. Having a wallet in your pocket is now a totally obsolete practice. RATP (public transportation network in Paris) has understood this by having QR codes in all of its stations frequented by Chinese tourists.

At the end of May 2017, RATP created its official account in Mandarin on the WeChat messaging application to accommodate the many Chinese tourists during their stay in the city of love.

Cécile Chamussy, Director of Public Tourism at RATP says, “Chinese tourists in ?le-de-France often take the metro and the bus. This is particularly the case for the category of tourists that is young, autonomous and uses digital tools. Their expectations and uses gave us the idea to address this clientele using the WeChat app.”

The first QR codes were installed beginning in August. Today, 50 stations and stops in ?le-de-France are home to one of these QR codes that WeChat users can scan to be accommodated on their journey. And right now, more than 20,000 people have subscribed to this account.

Adapting to Chinese tourism. In addition to the QR codes, RATP offers, on its account, special WeChat tickets that are delivered directly to China by a startup that helps Chinese tourists prepare for their trips to France.

Open to the world. Nowadays, mobile payment solutions are no longer limited to China. The U.S. has also opted for this fast and secure way through the Citcoin startup. A Chinese tourist traveling to New York will be able to pay for tickets or meals with their phone using the WeChat or Alipay app while being charged in China and the American merchant is credited directly in USD in the U.S.

Mobile payment must become widespread in order to attract Chinese tourists

Travel culture is growing. According to the World Tourism Organization, the Chinese middle class today spends 19 percent of their annual income on foreign travel. This is why the U.S. is doing everything possible to retain the interest of Chinese tourists, especially by offering ten-year visas. By facilitating access to mobile payment, the U.S. is therefore facilitating the arrival of lovers of the Statue of Liberty.

Some statistics to understand the importance of Chinese tourism in France. There are 2.2 million Chinese arrivals on French soil, and an average of 1,700 euros spent by them per day, making them the top non-European clientele in the country. And in 2017, Chinese tourists in particular generated more than 4 billion euros of income, a number that continues to grow without any sign of slowing down.

One question that arises: how can we succeed in satisfying this particular clientele?

It is necessary to offer adapted payment solutions. Mobile payment is a well-established payment method in China now, with already 64 percent of the population paying with a mobile device and tourists no longer wanting to take the risk of carrying cash and cards, and so be a target for pickpockets and pay a large bank fee. A more secure and convenient means of payment than a bank card, where only two codes are necessary to proceed with the payment using a cellphone instead of a card.

To make Chinese tourism thrive in France, it is essential to make them feel at home in the area and to allow them to maintain their payment habits even when traveling abroad. That is why, in 2016, the Printemps du Louvre paved the way for adopting Alipay, the payment service that has already been adopted by 520 million users in China.

Double the benefits. The E-Wallet is also an opportunity for merchants who can now accept larger payments. By using the applications below as veritable showcases, they can acquire new customers and retain them.

A range of services. Alipay is a true communication channel that has developed a geolocation service allowing its users to discover merchants around their location, their promotional offers and their novelties. WeChat is also a do-it-all app, where all merchants and e-merchants can promote their products by creating pages similar to those on Facebook.

Mobile payment is not an obstacle. On the contrary, it is a real opportunity for merchants to welcome new customers, and to expand and grow their businesses.

Silkpay, the French startup connecting European retailers to Chinese mobile payment apps has it all figured out. This startup provides a mobile payment solution that allows European merchants to sell directly to tourists and to pay in local currency. Launched in July 2017 and led by a team of 25 people from all over the world, Silkpay has already convinced 200 clients and has a monthly growth of 50%. Its advantages? Its employees – many of whom are Chinese and have studied in different sectors in France (tourism, marketing, etc.). Knowing firsthand the problems and needs of the clientele, they make up the perfect middle ground between the Chinese and French cultures. Furthermore, with the addition of the new China-C?te d’Azur direct line, many new tourists are expected, and merchants want to increase their visibility and attract tourists or Chinese consumers to buy from their e-commerce sites or in their stores. The goal: implement mobile payment wherever Chinese tourists are.

Conclusion: The future belongs to those who adapt to their customers

It was announced in 2017 that France is once again the king of mass tourism, having experienced a 5.6 percent growth compared to 2016. And according to the government, nearly 89 million foreign tourists have set foot on French soil in 2016. China swept into third place in this ranking behind the U.S. and Great Britain.

With the tourism sector accounting for 7 percent of the French GDP, it has become necessary to adapt to clientele and their consumption habits. The future undoubtedly belongs to those who adapt to their customers.

Annie Guo