Feb 1, 2017
More and more Chinese people like to go abroad for holidays for New Year. They bring luggage, smart phones and the desire to use the same technical equipment they are used to at home. For Chinese technology companies, this is a powerful combination that can help them compete in foreign markets.
Just as foreign companies often fail in China, Chinese companies struggle to fight abroad. Among the biggest failures are the leading technology companies in China, including Baidu Inc., Alibaba Group Holding Ltd. and Tencent Holdings Ltd. One mistake these companies have that is too rely on business models that adapt to the market from China. Mobile payments based on a smartphone, for example, are very popular in China, but largely unnecessary in Europe and North America, where credit and debit cards are ubiquitous.
Chinese tourists can offer these companies the opportunity to reverse this trend.
Since 2012, China has been became the largest source of foreign travelers, with 135 million travelers abroad in 2016 and spending $ 261 billion. Another advantage is that these tourists are accustomed to Chinese technology. In 2016, China made about $ 9 billion in mobile payments through applications such as Alipabas Alipay and WeChat Pay from Tencent. Both companies control about 92% of the national mobile payments market.
Some companies are setting the stage for a more ambitious transition. Last month, WeChat Pay said expats in China and local users in Hong Kong, Taiwan and Macao can now connect international credit cards to their accounts. Previously, the service could only be used by Chinese with accounts in the continent. The symbolism were not subtle: WeChat gives foreign users the power to make electronic payments to tens of millions of merchants around the world, marking their own ambitions to eventually become global.
In this international background, the competition of the international market will be fiercer and fiercer. Lack of competitive companies will be increasingly difficult to survive, or even submerged in the wave of Market internationalization. But,this is a huge opportunity for all companies too, for the Paymentship as well. As long as we have sufficient competitiveness, we can break cocoon into a butterfly.Paymentship is the leading global payments platform.We are the leading global payments platform. We solve payment problems of large scale companies with technology and we enable payments for end-users all over the world.