China’s Payment Apps Give U.S. Bankers Nightmares

#1

Post by dismal2 » Wed, May 23, 2018, 2:56 PM UTC

China’s Payment Apps Give U.S. Bankers Nightmares
bloomberg.com

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#2

Post by ksec » Wed, May 23, 2018, 3:24 PM UTC

Why are some Bloomberg article paywalled and some are not? As I am over the limit and I was expecting I cant read the article when I click through it.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#3

Post by awat » Wed, May 23, 2018, 3:26 PM UTC

Not to be overly pessimistic but this sentiment seems to be one of the the default themes at the moment. Fear of not getting a cut whether you offer value in that space or not.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#4

Post by hclalpha » Wed, May 23, 2018, 3:29 PM UTC

This has been like this for at least 2 years over there now. This is facebook/whatsapp best's and only strategy to stop living off consumer data and start living off an actual service industry. Very poor management decision from my perspective, perhaps they had trouble gathering political support.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#5

Post by sevensor » Wed, May 23, 2018, 3:36 PM UTC

How do these systems compare with Mpesa, which I'm given to understand is big in Africa?

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#6

Post by kevin_b_er » Wed, May 23, 2018, 3:38 PM UTC

The banks have been pushing for a cashless society for awhile now.

So once they achieve their goal of preventing me from paying someone else $10 without a 3rd party getting a 2-3% fee for the privilege of exchanging money between two private parties, it won't be them getting the 2-3%? Cry me a river.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#7

Post by gruez » Wed, May 23, 2018, 3:40 PM UTC

>Western bankers and credit-card executives who travel to China keep returning with the same anxiety: Payments can happen cheaply and easily without them.

but there are plenty of "bank -> wallet -> merchant" services in US as well. most notably paypal: you deposit money to your paypal wallet, and spend that money at various online merchants, no credit cards involved.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#8

Post by lainga » Wed, May 23, 2018, 3:41 PM UTC

ksec wrote: post #2

Why are some Bloomberg article paywalled and some are not? As I am over the limit and I was expecting I cant read the article when I click through it.

I have noticed that Bloomberg won't wall off their longform or graphic-design articles, I'm thinking because they're from Businessweek and not regular news you could get on the Bloomberg Terminal.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#9

Post by chii » Wed, May 23, 2018, 3:41 PM UTC

hclalpha wrote: post #4

This has been like this for at least 2 years over there now. This is facebook/whatsapp best's and only strategy to stop living off consumer data and start living off an actual service industry. Very poor management decision from my perspective, perhaps they had trouble gathering political support.

> stop living off consumer data and start living off an actual service industry.

the apps in china boomed due to the fact that credit cards weren't popular nor available at the time, and the opportunity for the app (wechat) to become the payment method presented itself.

This can't happen in the western world, because credit cards are so ubiquitous, and displacing it is high neigh impossible.

Re: China’s Payment Apps Give U.S. Bankers Nightmares

#10

Post by drb91 » Wed, May 23, 2018, 3:42 PM UTC

Is there any evidence these chat based payment apps (venmo, apple pay, facebook messenger, snapchat...?) are replacing credit card transactions in the US? They seem to replace person to person cash transactions instead.