DOCSLIB.ORG

Why the Payment Landscape Is Undergoing Fundamental Change E-BOOK MOBILE PAYMENTS

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text

Load more

E-BOOK mobile payments Why the payment landscape is undergoing fundamental change E-BOOK MOBILE PAYMENTS Within the context of digitalization and the technological change, and the entry of the heavyweights into the mobile payment market, the development of pay- ments via smart phone is gaining momentum. Take the CHANCE! 2 E-BOOK MOBILE PAYMENTS Cash was yesterday! The mobile payment systems of Amazon, Apple, Google and many other providers promise consider- able simplification of the payment process. It is therefore clear the mobile payment will gain market shares and the physical wallet will see a slow decline. Jan Florian Richard from Arvato Financial Solutions explains the perspectives of mobile payment and introduces the most important players. 3 E-BOOK MOBILE PAYMENTS “There are still concerning’s with mobile payment“ Where there were previously some big question marks, it is now slowly becoming clear: Mobile payment in places like super- markets is permanently increasing. The relevant studies may be contradicting each other to some extent, but there is a clear trend towards the increasing acceptance of mobile payment. The user figures are nevertheless coming from a low level and security concerns above all as well as a lack of awareness are keeping the majority of consumers from using mobile payment. In Germany especially, we have the traditional great affinity with cash, and many people seem to still be unaware of the topic. So at the end of 2018, the EHI Retail Institute published a survey, which showed that 60 percent of respondents had even heard of mobile payment. And even this group is dominated by the doubters, whereby almost two thirds consider the process to be intransparent and insecure. The threat of hackers and the loss of smart phones are deterrents, but also the reticence to give out personal data. ? 4 E-BOOK MOBILE PAYMENTS On the other hand, the numerous benefits are enticing and the existing users and interested parties have very clear expectations of the new process: mobile payment should speed up and simpli- fy payment overall. With the help of an additional practical way to transfer money, consumers also want to become more in- dependent of cards and cash, so for many mobile payment is a contemporary alternative to other payment methods. The relevant figures also show in this connection that those sur- veyed mainly use their smart phone or smart watch at the super- market, but prefer to pay in cash or by card in small businesses such as the bakery or for larger purchases such as furniture. The use of mobile payment is therefore still very dependent on the type and place of purchase. An interesting point for providers is that consumers mainly trust their bank or credit card pro- viders as well as major trading companies. The major tech companies from the USA are still seen with scepticism when it comes to money. Domestic providers should take advantage of these reservations. So my advice is: “Use the home advantage!“ 5 E-BOOK MOBILE PAYMENTS Mobile payment doesn‘t just play an increasing role in stationary shops, but the corresponding buttons are also more often inte- grated in e-commerce. Both Apple and Google, as well as banks, credit card companies and telcos and payment service providers such as PayPal offer the corresponding process. According to a survey conducted by GS1, Amazon Pay holds a special status - the majority of shops see the payment function of the online shopping giant as competition. So it is still very open as to how the payment market will develop and which processes will be the most popular. The expectations of trade and the results of studies are however very clear: Apple Pay and Google Pay above all are redefining the market and are encouraging increasing numbers of consumers to pay with their smart phones and smart watches. Almost every third person has already paid mobile Have you ever paid mobile with smartphone or smartwatch? 30% Yes* 70% 1% Via Smartphone and No No answer NFC provider 26% Via Smartwatch and NFC provider 23% Via Smartphone and QR-Code 3% 0 5 10 15 20 25 30 *Basic: All respondents (n=1.005) deviations up to 100% due to rounding | * Multiple nomination possible | Source: Bitkom research 6 E-BOOK MOBILE PAYMENTS On a global level too, the prospects are impressive. While the market share of paying using a mobile wallet is currently still below most other payment methods, Worldpay predicts a sig - nificant change here. Accordingly, mobile payment will have overtaken cash and credit cards by 2022. The figures mean an annual growth rate of 30 percent. This is not enough, as until now less than half of all Asians and Africans do not even have access to the internet. On these continents especially, there is therefore huge potential for more mobile payment users. In 2022 mobile payment should replace the cash and credit card payment methods as the most popular method. 7 E-BOOK MOBILE PAYMENTS Mobile Wallets An overview of the providers on the payment market 8 E-BOOK MOBILE PAYMENTS When we talk about mobile payment processes, this mostly refers to the so-called mobile wallet. This is a wallet that is controlled by mobile telephone and which holds various digital payment methods or a credit balance. A mobile wallet can therefore replace or add to other payment methods with the help of your own app solutions or a cooperation with a payment service provider. In addition to payment processes, many mobile wallets also allow users to execute other applications. These include functions such as authentication of the holder, but also couponing and loyalty programs or ticketing. Payment and other data can be transferred via NFC, the mobile network or Bluetooth to the relevant recipient of the funds. The great success of mobile wallets is mainly attributable to its positive user experience. So they offer money transfers without media discontinuity and at the same time offer high security standards. Digital wallets integrate the payment process into the lifestyles and daily routines of consumers, and also accelerate the check-out process at the POS. But how does the mobile payment process actually work? What is the technology behind it and what can be said about the customer journey? To clarify the functionality and potential, we have taken a closer look at Apple Pay and Google Pay. We also take a brief look at other providers of interest on the payments market. 9 E-BOOK MOBILE PAYMENTS 01 Apple Pay This service is a mobile wallet, which is available to users of more recent iPhone, iWatch, iPad or Mac devices. Apple Pay was an- nounced back in 2014 and was only initially available for holders of US credit cards. In the meantime, more and more countries have been integrated and German Apple customers have been able to use this payment method since 11 December 2018. They need to add a credit or debit card, which is used to process payments. At the POS, they only need to hold their device to the payment terminal and as such trigger the contactless payment process. Unlike Google for example, Apple prevents third-party providers from accessing the built-in NFC chip. This means iPhone users cannot use any other payment apps. “The payment process with Apple Pay is very user-friendly.“ Any online retailers wishing to offer Apple Pay must meet certain conditions. As such, shops or developers must have an Apple Devel- oper Account and the relevant acquirer must support Apple Pay. 10 E-BOOK MOBILE PAYMENTS Even if e-commerce websites need to meet the Apple guidelines and support the https protocol, they do not need a separate agree- ment with Apple. Which also means no additional costs. There are also more framework conditions. The shop operator‘s systems must also be compatible and it remains to be clarified whether the relevant payment service provider actually supports Apple Pay for the retailer‘s acquirer. This detour via an additional service provider is necessary because a direct integration of Apple Pay is not currently supported. It is very simple for owners of iPhones & co. to pay with Apple Pay. When checking out in the online store or at the supermarket, a but- ton will appear with the corresponding payment function and once the orderer has checked the details on the display, they can simply trigger the payment via the fingerprint sensor. If the payment was successful, a confirmation will appear on the display. However, the technology does not work on all Apple devices; older models often do not have the required conditions. 11 E-BOOK MOBILE PAYMENTS For many users, there are still two important questions: Where can I pay with Apple Pay and which banks and payment service providers are involved? In terms of acceptance, a lot has been done since its launch in 2018, and all major brand stores from A for Adidas to Z for Zalando, as well as discounters, many chains and even petrol stations and shopping centres now accept Apple Pay. The selection of banks and credit card companies is also very large, and for example the german Sparkasse and Volksbank banking networks are in the integration phase, which means the majority of German banking customers can use Apple Pay. American Express, Maestro, Master- card, Deutsche Bank, N26, HypoVereinsbank, Santander, Comdirect and DKB are all on board already. More will follow. 02 Apple Card The Californians are venturing even deeper into the finance industry with the Apple Card, a credit card. Although it is a physical card with its sophisticated titanium look, in actual fact it lives in the iPhone; integrated in the Wallet app.
Recommended publications
  • RCS and Payments Discussing RCS As a Payments Channel and Its Potential Under PSD2 Strong Customer Authentication February 2020

    RCS and Payments Discussing RCS As a Payments Channel and Its Potential Under PSD2 Strong Customer Authentication February 2020

    RCS and Payments Discussing RCS as a payments channel and its potential under PSD2 Strong Customer Authentication February 2020 About the GSMA About Consult Hyperion The GSMA represents the interests of Consult Hyperion is an independent strategic mobile operators worldwide, uniting more and technical consultancy, based in the UK than 750 operators with over 350 and US, specialising in secure electronic companies in the broader mobile transactions. With over 30 years’ experience, ecosystem, including handset we help organisations around the world exploit and device makers, software companies, new technologies to secure electronic equipment providers and internet payments and identity transaction services. companies, as well as organisations in From mobile payments and chip & PIN, to adjacent industry sectors. The GSMA also contactless ticketing and smart identity cards, produces the industry-leading MWC events we deliver value to our clients by supporting held annually in Barcelona, Los Angeles them in delivering their strategy. We offer and Shanghai, as well as the Mobile 360 advisory services and technical consultancy Series of regional conferences. using a practical approach and expert knowledge of relevant technologies. Hyperlab, For more information, please visit the our in-house software development and GSMA corporate website at testing team, further supports our globally www.gsma.com. Follow the GSMA on recognised expertise at every step in the Twitter: @GSMA. electronic transaction value chain, from authentication, access and networks, to databases and applications. For more information contact [email protected] ABSTRACT Rich Communication Service (RCS) was first defined around 2007/8 and was taken on by GSMA as the protocol to replace Short Message Service (SMS).
  • PISA in Focus Education Policy Education Policy Education Policy Education Policy Education Policy Education26 Policy Education Policy Grade Expectations

    PISA in Focus Education Policy Education Policy Education Policy Education Policy Education Policy Education26 Policy Education Policy Grade Expectations

    PISA IN FOCUS education policy education policy education policy education policy education policy education26 policy education policy Grade expectations • Countries vary in the way they use marks, but they all tend to reward the mastery of skills and attitudes that promote learning. • Teachers tend to give girls and socio-economically advantaged students better school marks, even if they don’t have better performance and attitudes than boys and socio-economically disadvantaged students. • It seems that marks not only measure students’ progress in school, they also indicate the skills, behaviours, habits and attitudes that are valued in school. School marks are more than just a source of anxiety – and pride – among students; they are a way that society communicates its values concerning education and the skills needed to be good learners. Marks serve the primary purpose of promoting student learning by informing students about their progress, alerting teachers about their students’ needs, and certifying the degree to which students have mastered the tasks and competencies valued by teachers and schools. Through school marks, teachers reward Marks can have long-term certain habits, attitudes and behaviours with consequences for a student. the objective of fostering learning. In all countries and economies, teachers reward the mastery of competencies and skills in reading through marks in their language-of-assessment course. Most also reward the skills, attitudes, habits and behaviours that are necessary for lifelong learning, such as reading for enjoyment, using effective learning strategies and positive student-teacher relations. This is both desired and expected; but teachers seem to reward other things as well.
  • Snooping Passcodes in Mobile Payment Using Wrist-Worn Wearables

    Snooping Passcodes in Mobile Payment Using Wrist-Worn Wearables

    WristSpy: Snooping Passcodes in Mobile Payment Using Wrist-worn Wearables Chen Wang∗, Jian Liu∗, Xiaonan Guo†, Yan Wang‡ and Yingying Chen∗ ∗WINLAB, Rutgers University, North Brunswick, NJ 08902, USA †Indiana University-Purdue University Indianapolis, Indianapolis, IN 46202, USA ‡Binghamton University, Binghamton, NY 13902, USA [email protected], [email protected], [email protected] [email protected], [email protected] Abstract—Mobile payment has drawn considerable attention due to its convenience of paying via personal mobile devices at anytime and anywhere, and passcodes (i.e., PINs or patterns) are the first choice of most consumers to authorize the payment. This paper demonstrates a serious security breach and aims to raise the awareness of the public that the passcodes for authorizing transactions in mobile payments can be leaked by exploiting the embedded sensors in wearable devices (e.g., smartwatches). We present a passcode inference system, WristSpy, which examines to what extent the user’s PIN/pattern during the mobile payment could be revealed from a single wrist-worn wearable device under different passcode input scenarios involving either two hands or a single hand. In particular, WristSpy has the capability to accurately reconstruct fine-grained hand movement trajectories and infer PINs/patterns when mobile and wearable devices are on two hands through building a Euclidean distance-based model and developing a training-free parallel PIN/pattern inference algorithm. When both devices are on the same single hand, Fig. 1. Mobile payment examples and representative passcode input scenarios. a highly challenging case, WristSpy extracts multi-dimensional features by capturing the dynamics of minute hand vibrations from moderate accuracy (< 10% in 5 tries) because it is hard and performs machine-learning based classification to identify to capture fine-grained hand movements of the user.
  • Inequality, Social Protests and Civil War Oasis, No

    Inequality, Social Protests and Civil War Oasis, No

    Oasis ISSN: 1657-7558 ISSN: 2346-2132 Universidad Externado de Colombia Díaz, Fabio Andrés Inequality, Social Protests and Civil War Oasis, no. 26, 2017, July-December, pp. 25-39 Universidad Externado de Colombia DOI: 10.18601/16577558.n26.03 Available in: http://www.redalyc.org/articulo.oa?id=53163843003 How to cite Complete issue Scientific Information System Redalyc More information about this article Network of Scientific Journals from Latin America and the Caribbean, Spain and Journal's webpage in redalyc.org Portugal Project academic non-profit, developed under the open access initiative Inequality, Social Protests and Civil War Fabio Andrés Díaz* ABSTRACT Key words: Inequality, horizontal inequality, Vertical inequality, protest, civil wars. The following article presents a series of hy- potheses to analyze the possible transitions Inequidad, protestas sociales between protest and civil war and their relation y guerra civil to inequality. To do so, the article presents an analysis on the emergence of protests and its re- RESUMEN lation with the increase in inequality across the world. This increase in inequality can in fact A partir de una serie de hipótesis se estudian lead to social unrest, instability and in some las posibles transiciones entre protestas y cases facilitate the emergence of future armed guerras civiles, y su relación con la existencia conflicts. Thus this scenario of increased in- de inequidades en diferentes constituyentes. equality presents different possible trajectories: Se analiza la emergencia de una nueva ola 1) protest generated by inequality can escalate de protestas, su relación con la existencia de into civil conflicts and civil war, or 2) protest inequidades y su aumento a nivel mundial.
  • The New Normal: Market Cooperation in the Mobile Payments Ecosystem ⇑ Jonas Hedman , Stefan Henningsson

    The New Normal: Market Cooperation in the Mobile Payments Ecosystem ⇑ Jonas Hedman , Stefan Henningsson

    Electronic Commerce Research and Applications 14 (2015) 305–318 Contents lists available at ScienceDirect Electronic Commerce Research and Applications journal homepage: www.elsevier.com/locate/ecra The new normal: Market cooperation in the mobile payments ecosystem ⇑ Jonas Hedman , Stefan Henningsson Department of IT Management, Copenhagen Business School, Howitzvej 60, 2000 Frederiksberg, Denmark article info abstract Article history: The introduction of mobile payments is one of many innovations that are changing the payment market. Received 26 November 2014 This change involves new payment service providers entering this lucrative market, and meanwhile, the Received in revised form 19 March 2015 existing stakeholders are trying to defend their oligopolistic positions. The mobile payment market Accepted 19 March 2015 cooperation (MPMC) framework in this article shows how the digitalization of payments, as a technology Available online 26 March 2015 innovation, affects the competition and collaboration among traditional and new stakeholders in the payment ecosystem at three levels of analysis. We do this by integrating theories of market cooperation Keywords: with the literatures on business and technology ecosystems. The MPMC framework depicts technology- Case study based market cooperation strategies in the context of recent battles in the mobile payments ecosystem. iZettle Market cooperation In these battles, the competitors can use technology either in defensive build-and-defend strategies to Mobile payment protect market position, or in offensive battering-ram strategies for ecosystem entry or position improve- Payment ecosystem ment. Successful strategies can lead to: (1) Ricardian rents, based on operational efficiency advantages Payment markets traceable to the firm’s position relative to suppliers and monopoly power; and (2) Bainian rents, resulting PayPal from the extent the firm is able to resist price competition in the market.
  • Payment Services)

    Payment Services)

    2018 Business Briefing (Payment Services) December 10, 2018 Representative Director and Senior Executive Vice President Shigeki Yamaguchi © 2018 NTT DATA Corporation Self-introduction ■Business experience Apr 1984 Joined NTT DATA • Engaged in development of middle software for shared scientific computation systems • Project leader of system development for distribution industry, etc. Jul 2010 Head of Enterprise Business Consulting Marketing Sector • Engaged in establishment of NTT Data Business Consulting Corporation, a predecessor of QUNIE CORPORATION, a consulting firm of NTT DATA Group, and concurrently served as Director and Executive Vice President Jan 2013 Representative Director and Senior Managing Director of JSOL Corporation • Engaged in expansion of SAP business Jun 2013 Senior Vice President, Head of Business Consulting & Marketing Sector • In charge of consulting and ERP (Biz∫) business Jun 2014 Senior Vice President, Head of Third Enterprise Sector Shigeki Jun 2016 Executive Vice President, Head of IT Services & Payments Services Sector • In charge of payment business, distribution and service industries Yamaguchi Jun 2017 Director and Executive Vice President, Responsible for Enterprise & Solutions Segment and China & APAC Segment Jun 2018 Representative Director and Senior Executive Vice President ■Area of expertise Digital commerce, payment, and consulting 2 © 2018 NTT DATA Corporation Organizational structure • IT Services & Payments Services Sector of Enterprise & Solutions Segment provides services for Japanese payment
  • Mobile Payments

    Mobile Payments

    Mobile Payments - A study of the emerging payments ecosystem and its inhabitants while building a business case. By: Cherian Abraham Principal Analyst – Mobile Commerce & Payments Practice / Co-Founder - DROP Labs Twitter @ http://twitter.com/cherian abraham LinkedIn @ http://www.linkedin.com/in/cherianabraham For more information on this study and associated research, contact me at EXECUTIVE SUMMARY: The advent of the ubiquitous smart phone has along with it brought dramatic shifts in customer behavior and payment modalities. Banks are finding themselves in an unenviable position of choosing to wait until a secure and safe standard emerges for "Digital", or take the plunge in to these murky payment waters. There is a battle waging for the customer mind-share and emerging revenue streams, between traditional and non-traditional players - who are ever more emboldened by advances in technology and disappearing barriers to entry. The objective of this study is to build a business case for banks evaluating the opportunities and challenges present in building out mobile payment solutions, including direct and indirect revenue generation. This study paints a roadmap of current mobile payment initiatives undertaken by Financial institutions, MNO's and technology upstarts, and to highlight the risks of building payment solutions which are not centered on the payment context. This study summarizes the challenges ahead for mobile payments, including a lack of interoperability, consumer apathy and a general lack of understanding of its merits. It is targeted at financial institutions that may be making first steps, by building out their own mobile wallet initiatives or partnering with others, and seeks clarity.
  • PDS) for This Product Is Current As at the Above Date

    PDS) for This Product Is Current As at the Above Date

    Product Disclosure Statement StrataPay Pty Ltd ACN: 097 607 451 AFS License: 247378 Product Disclosure Statement 31 May 2019 This Product Disclosure Statement (PDS) for this product is current as at the above date. V_MC_GC_0209 2 This PDS provides information about the payment system provided by StrataPay (Payment System) to assist you to make an informed decision about this product. Important Information Please read this PDS carefully. Always retain a copy of this PDS and related documents for future reference. Financial Services Licence Holder StrataPay Pty Ltd ABN 52 097 607 451 AFSL # 247378 StrataPay means StrataPay Pty Ltd (ABN 52 097 607 451) or any of its officers, employees, servants, agents or contractors. You can contact StrataPay by the following means: Telephone on 1300 135 610 Facsimile on (07) 5575 7433 http://www.stratapay.com/ Writing to the address below: StrataPay Pty Ltd Locked Bag 9 Gold Coast Mail Centre BUNDALL QLD 9726 Product Description The Payment System is an electronic bill paying service. The Payment Options some of which utilise non-cash payment facilities which are available to your customers as part of the Payment System are: (a) Internet (via your customer’s or client’s credit card) (b) BPAY® (c) POSTbillpay® (d) EFT (e) Direct Debit (f) Mail (g) Phone (with your customer’s credit card) (h) In person. Essentially, StrataPay acts as a conduit for payments from your customers to you by utilising one of the Payment Options. Participating Entity means you and any entity who joins StrataPay and offers a choice to their customers to use the Payment System to facilitate non-cash payments.
  • Security of Mobile Payments and Digital Wallets

    Security of Mobile Payments and Digital Wallets

    Security of Mobile Payments and Digital Wallets DECEMBER 2016 www.enisa.europa.eu European Union Agency For Network and Information Security Security of Mobile Payments and Digital Wallets December 2016 About ENISA The European Union Agency for Network and Information Security (ENISA) is a centre of network and information security expertise for the EU, its member states, the private sector and Europe’s citizens. ENISA works with these groups to develop advice and recommendations on good practice in information security. It assists EU member states in implementing relevant EU legislation and works to improve the resilience of Europe’s critical information infrastructure and networks. ENISA seeks to enhance existing expertise in EU member states by supporting the development of cross-border communities committed to improving network and information security throughout the EU. More information about ENISA and its work can be found at www.enisa.europa.eu. Contact For queries in relation to this paper, please use [email protected] For media enquires about this paper, please use [email protected]. Acknowledgements Romana Sachovà, Fraud Prevention Manager, CaixaBank Soralys Mario Maawad Marcos, Fraud Prevention Director, CaixaBank Hernandez Revetti, Security Consultant, GMV Legal notice Notice must be taken that this publication represents the views and interpretations of ENISA, unless stated otherwise. This publication should not be construed to be a legal action of ENISA or the ENISA bodies unless adopted pursuant to the Regulation (EU) No 526/2013. This publication does not necessarily represent state-of the-art and ENISA may update it from time to time. Third-party sources are quoted as appropriate.
  • M-Wallet: an SMS Based Payment System

    M-Wallet: an SMS Based Payment System

    International Journal of Engineering Research and Applications (IJERA) ISSN: 2248-9622 National Conference on Emerging Trends in Engineering & Technology (VNCET-30 Mar’12) M-Wallet: An SMS based payment system Nitika Rai*, Anurag Ashok**, Janhvi Chakraborty**, Prajakta Arolker**, Saumeel Gajera** *(Associate Professor, Department of Information Technology, St. Francis Institute of Technology, Mumbai-103 Email: [email protected]) ** (Student, Department of Information Technology, St. Francis Institute of Technology, Mumbai-103 Email: [email protected], [email protected], [email protected], [email protected]) ABSTRACT Mobile commerce especially mobile banking is popular in This paper describes an efficient alternative to the countries where most of their population is unbanked. By traditional and current payment systems. With the 2012, it is estimated that there will be 1.7 billion people advent of m-commerce, the payment systems are also with a mobile phone but not a bank account [2]. Mobile being moved to the mobile devices. The current mobile payment is being adopted all over the world in different payment systems are generally tied to a network ways. Combined market for all types of mobile payments is provider or work only on smart phones. The transaction usually takes place via a mobile app and a expected to reach more than $600B globally by 2013, [3] GPRS / Wi-Fi connection may be required. M-Wallet is which will be the double of the current figure, [4] while an alternative mobile based payment solution that aims mobile payment market for goods and services excluding at replacing the current payment solutions like credit contact less NFC transactions and money transfers is cards; debit cards and cash with a simple Short expected to exceed $300B globally by 2013.
  • National Payment System Development Strategy for 2021 – 2023

    National Payment System Development Strategy for 2021 – 2023

    NATIONAL PAYMENT SYSTEM DEVELOPMENT STRATEGY FOR 2021 – 2023 Moscow 2021 CONTENTS Introduction .......................................................................................................................... 2 1. Current status of the NPS ............................................................................................... 4 1.1. Regulation ..................................................................................................................................................................................4 1.2. NPS infrastructure .................................................................................................................................................................5 1.3. Payment service providers ................................................................................................................................................9 1.4. Payment service consumers ..........................................................................................................................................10 2. Global and domestic trends and challenges of the payment market ......................13 2.1. Transformation of client experience and consumption models .....................................................................13 2.2. New payment technologies ...........................................................................................................................................13 2.3. New payment market participants .............................................................................................................................14
  • Mobile Banking and Payment in China

    Mobile Banking and Payment in China

    MOBILE COMMERCE Mobile Banking and Payment in China Wai-Ming To and Linda S.L. Lai, Macao Polytechnic Institute, China Of the more than 500 million Internet users in China as of June 2013, more than 400 million accessed the Web using mobile devices. This article investigates the development of mobile banking and payment systems in China. hina has developed into an Internet prompt payment, continue to increase. Hence, hot spot.1 In 2008, China surpassed China’s fast-growing mobile market, combined the US in number of Internet users, a with its large and growing consumer economy, number projected to reach 690 million means that it now is poised to become a global Cin 2017. 2 China is also one of the fastest growing force in mobile banking and payments. However, mobile markets in the world, with approximately a number of significant issues prevent wide-scale 451 million cellphone owners. Many of these us- adoption of this technology. ers have not yet availed themselves of 3G mobile services.3 Recent Developments Given the country’s sustained economic As Figure 1 shows, the number of online bank- growth and its 7 to 8 percent gross domestic ing users increased from 40.3 million in 2007 to product (GDP) increase in the past five years, 221.5 million in 2012, and the number of online business activities and volumes in China will payment users increased from 33.2 million to likely continue their rapid development. Online 220.7 million during the same period. The num- banking and payment systems have also rapidly ber of online banking and online payment users developed in the past few years.4 At the same increased further to 240.8 and 244.4 million, time, online retailing transactions and business- respectively, during the first half of 2013.