Basic Concepts of Electronic Payment

Electronic payment refers to the use of secure electronic means among consumers  , merchants and financial institutions to securely transmit payment information to banks or corresponding processing institutions through information networks to realize currency payment or capital flow.

In the 1990s, the Internet rapidly became popularized, and gradually moved from universities and scientific research institutions to enterprises and families. Its function also evolved from information sharing to a popular means of information dissemination, and commercial and trade activities gradually entered the kingdom. Through the use of the Internet, the cost is reduced and more business opportunities are created. E-commerce technology has been developed, making it gradually become the biggest hot spot of Internet applications. In order to adapt to the market trend of e-commerce, electronic payment has developed accordingly

      The current situation of mobile payment

       1.The number of mobile payment users in China reaches 870 million

The comprehensive layout of payment companies in mobile payment has also driven the growth of mobile online payment users. From 2011 to 2020, the number of mobile payment users in my

country has increased year by year. According to the 47th “Statistical Report on the Development of C

hina’s Internet Network” released by the China Internet Network Information Center, as of December 2020, the number of mobile payment users in my country reached 854 million. Compared with June 2019, it increased by 34.9%, and the proportion of mobile payment used by netizens increased from 72.5% at the end of 2018 to 86.4%.

As of June 2021, the number of online payment users in China reached 872 million (872.21 million), an increase of 17.87 million from December 2020, accounting for 86.3% of the total netizens.

        2.Third-party mobile payment becomes the main force

Due to the active third-party payment APP, people are gradually accustomed to using third-party mobile payment for payment, and it has become the largest part of the mobile payment market. In 2020, the total transaction scale of China’s third-party mobile payment market will reach 271 trillion yuan, with a growth rate of 19.9%. In February 2021, China UnionPay released the “2020 Mobile Payment Security Survey Report”. According to the survey data, 98% of the respondents regard mobile payment as the most commonly used payment method. On average, each person uses mobile payment three times a day. Among them, QR code payment is the most popular.

The impact of electronic payments

(1) The impact of mobile payment on consumers

For consumers, we can scan the QR code directly in the physical store and pay easily. No need to carry cash, no need to change, no need to swipe a card to sign, which greatly saves our time and avoids the trouble caused by the problem of counterfeit  currency. In addition, these third-party payment platforms often do some online activities of full reduction and red envelope grabbing, which not only give us discounts, but also bring us a lot of fun; in addition, through the fast transfer of mobile payment, we can easily achieve life. Payment, ticket purchase , mobile phone recharge, etc., can truly handle various businesses without leaving home; in addition, third-party payment institutions also have functions such as wealth management, education and public welfare, shopping and entertainment, and providing third-party services. To meet our needs at different levels, it greatly enriches our lives.

 (2) The impact of mobile payment on merchants

For merchants, the development of mobile payments also brings many benefits. First of all, the mobile payment fee is low, which expands the profit space of merchants; in addition, merchants can carry out full reduction and random money reduction activities through WeChat and Alipay discount activities, which can not only increase the turnover, but also expand the publicity effect. Promote the establishment of business reputation.

The future development trend of electronic payment

First of all, with the fierce  development of electronic payment, the business growth of banks does not increase but decreases. In the future development of electronic payment industry, the power of banks needs to rise again. Excellent e-commerce and payment companies can help banks to reorganize and plan the access and usage norms of banks’ electronic channels, and delineate appropriate cost space as the driving force for bank upgrades and innovations. Secondly, with the rapid development of the electronic payment industry, my country’s supervision system is also constantly improving. The main theme of comprehensive supervision and hierarchica . supervision of the payment industry is basically set. The regulatory framework of non-bank payment institutions is constantly improving. The self-discipline system of the liquidation industry has been basically formed. However, the supervision method needs to adjust the positioning to simplify the complex, speed up the management of credit information, and further enhance the role of credit reporting in the society. Finally, in the cross-border payment scenario, due to the lack of a low-cost and high-efficiency solution on a global scale, there are differences in political, regulatory and other factors between different countries, and further expansion of electronic payment payment forms a profession. The decentralization and trustless model of blockchain technology is a very potential electronic payment solution, which may be promising in the future.