China, India lead Asian advance of smartphone payment

SHANGHAI/MUMBAI -- Mobile phone-based payment is spreading rapidly through emerging Asian economies, where low takeup of other methods has allowed the services to leapfrog older technologies.

The Bingo Box, which opened in a Shanghai suburb in June, looks like any other convenience store -- it sells all the drinks and snacks you would expect at any of its competitors. The only thing missing is the staff.

At the Bingo Box, your smartphone does everything from unlocking the doors to paying the bill, making full use of China's hugely popular smartphone-based payment systems -- Alibaba Group Holding's Alipay and Tencent Holdings' WeChat Pay.

To shop at Bingo Box, customers who have registered on Alipay or another platform can enter the store, scan products to bring up the price on the screen, and then pay using their smartphones.

The savings made on staffing costs can be passed on and prices are around 5% lower than at other convenience stores.

The venture company which operates the store has set a target of opening 5,000 Bingo Boxes over the next year.

Alipay has 400 million users in China, while WeChat Pay boasts 700 million. The colossal user base has provided fertile ground for the development of new businesses.

One such company, Hema Xiansheng, will deliver fresh groceries within 30 minutes of an order.

"Try it out," said a 24-year-old in Shanghai to her friend who had been unable to go shopping during a bout of illness. "You get fresh fruit and veg delivered immediately."

When an order is placed, a member of staff at a Hema Xiansheng supermarket in the city will gather up the goods and have them delivered to the customer's door. There are 10 such supermarkets in the city.

Since the service started in 2016, the number of users has skyrocketed in Shanghai, Beijing and other parts of the country and the operator plans to expand the service to more areas.

No cash needed

India is not far behind and new services making use of mobile payment systems are booming.

In Mumbai, the number of people using their phones to make small purchases, such as fruit or a light meal, is growing by the day.

System has been introduced at market stalls.

The smallest of businesses, even one of the city's thousands of market stalls, can easily adopt One97 Communications' Paytm system. Customers can pay their bills simply by reading a QR code or typing in the stall owner's phone number.

The number of Paytm users has surpassed 230 million since its launch in 2011.

Once accustomed to paying for stuff on their phones, users flock to online stores, providing momentum to companies such as online retailer Flipkart. The number of users of its e-commerce website has grown to tens of millions within 10 years of the company's founding.

(Nikkei)

Source: China, India lead Asian advance of smartphone payment