With the development of mobile payment, Chinese people basically do not bring their wallets with their mobile phones. China has already taken the lead in the world in terms of “no cash” and mobile payment.
At the same time, China’s mobile payments are also profoundly affecting the development of emerging markets around the world. In addition to e-commerce, games, and tools Internet products, more and more overseas companies have begun to enter the payment field.
Chinese entrepreneurs are much more sensitive to money and business than others. Payment is the basis for the development of mobile Internet and the closest business to money. As the first platform to obtain cross-border online payment licenses, Alipay adopted the “sea shipbuilding” model in 2007, and copied the localized “Alipay” through technology and model output to quickly deploy overseas business.
In 2015, Ali began investing in Paytm, a local payment platform in India. An investor in an interview with Entrepreneurship said: “Payment is a very localized product. It is easier to grow into a large company with a wall in a local environment. Compared to other fields, this is a single A business that can collect money.”
In the context of many companies entering the overseas market, Chinese technology companies are becoming a force to promote the global payment system upgrade. In emerging markets such as Africa, the Middle East, India, and Latin America, Chinese Internet companies are launching a pay-for-war battle.
Opera layout African payment
In Africa, the use of Opera browser ranks second, second only to Chrome. Opera, which has a traffic advantage on search engines, founded Opay, a mobile payment application in 2018.
In July 2019, OPay announced the completion of $50 million in financing, including Sequoia China, IDG Capital and source capital, as well as founder Opera. OPay will support Opera’s business network ecosystem in Nigeria, including the motorcycle travel service ORide and the takeaway courier service OFood.
Opera CEO Zhou Yahui once said that expanding the coverage of OPay and its platform services is the key to Opera’s strategic planning. OPay will work with a range of products on the Opera platform, such as taxis, meals, and payments.
This means that Opera has officially stepped into the African payment system and started to compete with Jumia, Africa’s largest Internet company.
Jumia launched Jumia Pay in 2016 and is the first e-commerce payment system in African countries. In addition, China’s payment giants have been looking for new blue ocean opportunities in Africa.
In 2015, Tencent’s WeChat payment partnered with Standard Chartered Bank of South Africa to launch a mobile payment service. In 2017, Alipay entered the South African market and connected to 10,000 merchants in South Africa. Recently, Ali announced cooperation with African financial technology company Flutterwave to start providing digital payment services between Alipay and African merchants.
The African continent has more than 50 countries, a population of about 1.2 billion, and a GDP of 2 trillion US dollars. It is a huge market. But Africa is also a relatively backward-developing region. About 1.7 billion people in the world do not have bank accounts, and nearly 400 million are in Africa.
With the overall economic development of Africa and the outbreak of youth population, infrastructure such as logistics and payment will become the first wave of Internet landing in Africa, and payment is one of the important power points.
Overall, China has begun to enter Africa in mobile payments, but it is not easy to win market share in Africa. There are more than 50 countries in Africa that need localization experience to enter the booming African payment market, and this battle may have just begun.
Middle East Unicorn is committed to launch JollyPay
In addition to Africa, China’s unicorns have also begun to enter the Middle East payment market.
Founded in 2012, Jollychic is a typical case of going to the Middle East and the first cross-border e-commerce company in China to find gold from the Middle East market. Recently, he has been on the line of its payment tool JollyPay (to pay for the payment) and obtained the relevant payment license for the UAE.
According to its official website, JollyPay is determined to become one of the most popular mobile payment options for GCC (Gulf Arab States). The currencies currently supported by Jollypay include the US dollar, the United Arab Emirates Dirham, the Saudi Riyal, and the Qatari Rial.
Deming Vice President Du Mingxi believes that there is currently no online payment in the Gulf countries that can be fully open in policy, because it involves financial security, but it is because of this that it is full of imagination.
As one of the richest countries in the world, the UAE ranks among the top in the world in per capita GDP, and its mobile Internet penetration rate ranks among the top ten in the world. It is the blue ocean market for mobile payments.
China has begun to enter Africa in mobile payments, but it is not easy to win market share in Africa. There are more than 50 countries in Africa that need localization experience to enter the booming African payment market, and this battle may have just begun.
In addition to JollyPay, Middle East local e-commerce Souq launched PayFort, an online payment platform in 2013, which is the largest third-party payment platform in the Arab world. In March 2017, Souq was acquired by Amazon and PayFort became a member of Amazon.
In the Middle East, although online payment is not developed, cash on delivery is still the mainstream payment method for e-commerce, but the trend from offline to online is the trend, and the proportion of online payment such as credit cards and prepaid cards has been rising.
According to a report jointly released by Bain and Google, the e-commerce market in the Middle East and North Africa will reach nearly 30 billion US dollars in 2022. The six core countries in the Middle East are among the regions with the highest Internet coverage in the world, and payment will also usher in a new stage of growth. The Middle East and North Africa region has long been considered the next blue ocean market, and the Gulf region is considered to be an exponentially growing market in the next few years, which means that the Middle East needs more powerful electronic payment system support.
“India version of Alipay” is sought after by Chinese investors
In the context of Chinese Internet companies making overseas payments, Ali has already bet on the Indian payment company Paytm, which is one of Ali’s most successful overseas investments in recent years.
Paytm has a close relationship with China, and its founder Vijay Sharma is known as “Mayun of India”.
In October 2014, Ali was listed in the US, Vijay Sharma came to Hangzhou to learn from Ali; in September 2015, Ali and Ant Financial announced the joint investment in Paytm. At present, Ali has become the largest shareholder of Paytm, holding nearly half of the shares.