On March 22, according to Bloomberg News, on a recent Sunday, Dong Ximiao purchased fast food in Hangzhou KFC. Like most Chinese, he pulled out his mobile phone and intended to use mobile payment. The cashier asked: Alipay or WeChat payment? The problem is that Tung wanted to use Apple Pay, Apple’s payment service, to pay the bill. However, the cashier told him that she had never dealt with the Apple Pay transaction before and was not sure whether to support this service. Dong Xiyi, a researcher at Renmin University of China, said: "I am convinced that KFC supports the Apple Pay service, so I finally taught the cashier to complete the transaction step by step. She was surprised that the operation was so simple."
A year after the introduction of mobile payment services in China, Apple is trying to win more shares in this huge $5,500bn market, even if it supports China's largest banking and settlement network. This may be because the number of iPhones in China is too small. In 2016, iPhone sales in China accounted for only 9.6% of smartphone sales. But more importantly, consumers seem to be accustomed to using Alibaba's WeChat and Tencent's WeChat payment, which has been available for several years and supports all mobile devices, including the iPhone.
Marie Sun, an analyst with Morningstar Investment Service in Shenzhen, said: “I think that Apple Pay cannot get such a high market share in Alipay or WeChat in the foreseeable future. For this mobile payment service, I think The chance that it can gain more market share is a major security hole in its Chinese competitors, and consumers need to look for alternative services. From my personal point of view, I have not discovered that using Apple's services can bring additional benefits."
Apple spokeswoman Carolyn Wu refused to respond via email. Tim Cook, Apple’s chief executive, once stated in October 2016 that he was “very optimistic†about the Chinese market outlook, even though the company’s revenue in Greater China declined by 17% last year. Apple launched Apple Pay in 2014 and expects to generate significant revenue for it. However, the original intention of Apple's launch of this service is to make its iPhone more attractive than its competitors.
If there is a country that can make Apple Pay a great success, this country is definitely China. According to data released by TNS Global Ltd, 40% of China's connected consumers pay for mobile devices every week. This has made China the largest mobile payment market in the world, and Asia is also surpassing Europe and the United States in the field of mobile payments. When Apply Pay appeared in China in February 2016, there were more than a dozen partners, including ICBC and China Construction Bank. More importantly, users can register for bank cards or credit cards and shop through China UnionPay's sales network. This network has more than 10 million machines and can handle touch payment transactions. The CUP representative declined to comment.
However, Alipay and Wechat Payments can be paid directly online or by other means by scanning QR codes, making them easier and cheaper choices for merchants. For Apple Pay and other devices using near field communication technology, they need more expensive infrastructure. And the design of Alipay and WeChat payment is more convenient. People can transfer money or share dining bills. They are more like cash wallets. Mary Sun said: "Alphapay and WeChat are both pioneers, and they are still carrying out many promotional activities, such as giving users cash rebates and encouraging Chinese consumers to use their payment systems."
According to a major bank executive in China, only 1% of the bank’s more than 10 million digital banking customers have signed up for Apple Pay. User's payment activity also decreased from once a month to one every three months. An important reason that Apple Pay is behind Alipay and WeChat payment is that the iPhone is being squeezed out by Oppo, Huawei and other Chinese smart phone brands that are launching high-end devices that are very popular with consumers. IDC data shows that iPhone shipments in China fell by 23% in 2016.
Apple Pay's expansion in other markets has also been frustrated. In Australia, Apple has “fighted†with the country’s banks to seize the future of mobile payments, leading the Australian industry associations to “delay or even boycott†their entry into the country. In Japan, Apple Pay has been in trouble since its launch, and some consumers have had trouble registering on the iPhone. Even in the United States, Apple faces fierce competition because fast-food restaurants and retail stores are also introducing their own mobile payment services.
Market research firm IResearch found that mobile payment services are booming in China. Its total transaction volume in 2016 was as high as 38 trillion yuan, a twofold increase from the previous year. Alipay and Wechat Payments cover 90% of mobile payment users in China. According to Forrester Research data, compared to last year, the US mobile payment market grew by 39%, with a total transaction volume of 112 billion US dollars.
At the Odori Bakery in Beijing's Central Business District, cashiers said that Apple Pay can be used in more than 280 stores across the city. But as she scans WeChat on the user’s iPhone, she says, “Sorry, I don’t know how to operate Apple Pay because I’ve never used it.†Dong Xixi said: “It's difficult for Apple to change the current situation. It's not impossible. , but very difficult.Apple needs to solve two short boards, namely the last and last centimeters.The last mile is to allow more businesses to accept it, especially in small and medium-sized cities.The last centimeter means more consumption. Can use it. These two problems are also expensive and time-consuming." (small)