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Huge Technological Advancement For India and China: Use of Smart Wallets!

The Australian consumers have been using the mode of online payment in quite a remarkable number, the usage of smartphone wallets is still low as compared to many other nations in the region.

Huge Technological Advancement For India and China: Use of Smart Wallets! - Indiansite

These numbers in China has reached a peak with 70% of the population using smart wallets and the number in Australia lingers around 5%. The numbers come from IDC Financial Insights and ACI Worldwide’s most recent report on The future of digital payments: the Asian consumer’s evolving appetite for new methods of payments. A roundtable conference was held on smart payments and the use of smartphone wallets which was hosted by The Australian Financial Review. It was partnered by the Commonwealth Bank of Australia. In this roundtable, the director of IDC Australia/New Zealand, Ullrich Loeffler stressed that there needs to be a demarcation in the mature and emerging markets. With India and China, the use of smartphone wallets is being highly promoted in the recent times.

Loeffler says, “In the mature markets like Australia there’s a lot of credit card distribution or penetration and most Australians have a bank account whereas in emerging countries that’s not the case. They leapfrog the plastic and go straight to mobile solutions.”

This information is true as reports have said that 27% of the adult population in the emerging markets like India have bank accounts. The government in these regions have set a macro goal for financial inclusion and have strived hard to find a business model that is best suited for the purpose.

In Spite of all such efforts made by the givers, it is observed that telcos and some pure-play technology companies have maintained the lower section transactions well.

The report says, “Utilising such business models and infusing them with fresh energy and innovation from fintech players could give rise to truly innovative and sustainable business frameworks for service providers to finally take another look at this segment with renewed enthusiasm.”

Huge Technological Advancement For India and China: Use of Smart Wallets! - Indiansite

Australian business can use social media like AliPay, WeChat Pay and access Chinese consumers without having to give physical presence. Loeffler has said, “Chinese consumers are used to more mobile payments in China , and then when they travel to Australia, they’re expecting the same experience.” The biggest example is the use of smartphone applications to book their stay in Australia. Around 53% of Chinese people are using this method. The director has also said that these solutions are used mostly by the younger age groups as their security concerns are comparatively much lower. He says that the generation has very less botheration about sharing their passwords and displaying everything on Facebook. Their awareness regarding certain grounds is much lower.

“Interestingly, we found that it’s not so much a lack of awareness of security but just their idea of normal behavior across all of their lives. It’s how they are acting on a day-to-day basis.”

Mimika Mukherjee

Mimika Mukherjee

Content Writer at Indiansite
A 19 year old who dreams of travelling the world.
Mimika Mukherjee

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