U.S. Banks Are Terrified of Chinese Payment Apps Description video: If mobile payment apps became as popular in the U.S. as they are in China, banks would lose a projected $43 billion in revenue annually. Bloomberg QuickTake explains how cheap […]
U.S. Banks Are Terrified of Chinese Payment Apps
If mobile payment apps became as popular in the U.S. as they are in China, banks would lose a projected $43 billion in revenue annually. Bloomberg QuickTake explains how cheap and easy payments by phone are threatening one of the banking industry’s most profitable businesses.\n\nVideo by Robin Fall
Central Bank of China is concerned about the reduction of cash payments
The People’s Bank of China has called for greater use of cash in economic activities and pledged to punish those who refuse to accept cash, given the growing gap in digital access.
Online payments in China using barcodes and third-party payment apps such as Ant Group’s Alipay and Tencent Holdings’ Tenpay have gained popularity in recent years thanks to government policies to promote innovation.
People’s Bank of China (NBK, People&# 39; s Bank of China, PBOC) said on Tuesday in its report that some merchants and institutions have become reluctant to accept cash, citing reasons such as cost control or usability as the COVID-19 pandemic has intensified the trend of digital payments..
«Cash pinyin (yuan, renminbi) is the most basic means of payment. Organizations or individuals cannot refuse to accept it», – said the NBK, adding that the central bank will investigate and punish companies or individuals who refuse to accept cash or take discriminatory measures against cash payments.
In a separate statement, the central bank said payments for some basic government services such as health care, water, electricity and gas have gradually moved online..
As a result of the increasing digitalization of public life, older people have been left behind, as some of them find it much more difficult to adapt to new digital technologies than young people..
«Innovation in consumption and payment should contribute to … protect people’s livelihoods and enhance people’s happiness», – stated in the NBK notice.
NBK called on all legal entities and individuals not to discriminate or take any measures to exclude cash payments and create «breaks in digitalization».
«Non-bank payment institutions should not promote the concept of non-cash or discriminatory cash payment methods in any form», – said in a statement.