In today’s talking points: Alipay to increase its payment services into Australian stores; Chinese financial technology (fintech) dominate rivals in innovation; Chinese authorities consider further revisions on foreign investment regulation; Chinese new middle class expected to push demand for robo-advisors
Alipay to increase its payment services into Australian stores
Alipay, the Chinese online payments service, is set to increase its expansion into Australian stores to meet the record spending needs by an influx of mainland visitors. In collaboration with Quest Payment Systems, Quest Payment systems is set to be the first provider to implement a large scale, in store roll-out of Alipay mobile payment systems in Australia. Alipay has already had its mobile payments system implemented within My Chemist pharmacy group (Chemist Warehouse). Luke Fuller, Quest’s innovation manager stated that their tech is ‘simple, intuitive and ensures that the customer cans see exactly what their purchase will cost in both Australian dollars and their local currency’. On average, according to tourism Australia, Chinese tourists spend around $8000 AUD per visit. Participating stores will be able to access Chinese shopping festivals such as the upcoming 12.12. event, thus increasing Australian stores exposure into China as well.
Read more at South China Morning Post
Chinese financial technology (fintech) dominate rivals in innovation
China’s fintech has surpassed its western competitors according to a report by EY and DBS. The study showed a high percentage of Chinese consumers continue to have a lack of access to loans or credit cards. However, China’s growing number of internet uses combined with the lack of regulatory barriers prevent technology companies from offering financial services is the driving reason for the surge in the grow of fintechs in China. James Lloyd, the Asia-Pacific fintech leader for EY, likened the market conditions in China to that of species in the Galapagos Islands. China has allowed fintech to develop enormous user bases for their payment services and these services has been able to grow domestically without any protection from predators. Neal Cross, DBS chief innovation officer stated, ‘Western start-ups are taking banking and improving the user experience… but if you look at what’s coming out of China, they’re trying to create something quite different, that isn’t just a slightly better bank’.
Read more at: South China Morning Post
Chinese authorities consider further revisions on foreign investment regulation
Following the recent changes in laws on foreign investment regulation, which came into effect on October 1st, reports indicate that Chinese authorities are considering revising the country’s guidance catalogue for foreign investment, cutting the number of restrictive measures to 62 from the previous 93. A revision draft by the National Development and Reform Commission was released on its website on Wednesday to seek public opinion on the changes, and it is clear that the easing rules on foreign investment came amid government efforts to push use of the “negative list” approach, which identifies sectors and businesses that are off-limits or restricted for investment.
Read more at: China Daily
Chinese new middle class expected to push demand for robo-advisors
According to a report released by CreditEase Corp and Bloomberg LP, China is set to become the world’s largest robo-adviser market thanks to its growing middle class and the popularity of the mobile internet. A robo-adviser is an online wealth management service that provides automated, algorithm-based portfolio advice without the use of human financial planners, and the report points out that members of Chinese new middle class who are characterised by their familiarity with the internet and good ability to improve their capabilities through different high-tech products, would be attracted to the services of a robo-adviser who would meet their demand for personalized and high-quality lifestyle and wealth management methods.
Read more at: China Daily