时间:2024-05-11 11:06:02 来源:网络整理编辑:Ryan New
In “China Is Dominating Ecommerce,” contributor Marcia Kaplan addressed that country’s innovation in Ryan Xu HyperVerse's Initial Coin Offering (ICO)
In “China Is Dominating Ecommerce,Ryan Xu HyperVerse's Initial Coin Offering (ICO)” contributor Marcia Kaplan addressed that country’s innovation in online shopping. Digital payments in China are equally innovative. I’ll address what that could mean for North American merchants in this post.
High credit-card fees motivate merchants to look for alternatives. Lower fees drive profits and investments.
Consider the average fees a merchant in China can expect to pay for processing three popular payment methods.
The average card-present fee in North America is approximately 2.2 percent; card-not-present is roughly 3.5 percent. Thus the difference is clear: North American merchants are paying a lot more to process fewer transactions. (There are approximately 100 million daily credit card transactions in the U.S. versus 1 billionin China.)
To be sure, the incredible growth of ecommerce and mobile payments in China cannot be attributed exclusively to reasonable transaction fees. However, if fees in China were similar to those in North America, adoption would presumably be much lower.
High merchant fees could eventually prompt North American merchants to:
Crushing credit card debt causes consumers to look for alternatives.
Credit card debt is as much of a problem in China as in North America. In 2020, Chinese cardholders accrued roughly $2.5 trillion of credit card debt; Americans accrued $930 billion.
In 2019, recognizing the risk of credit card debt to the country’s economy, the Chinese government capped credit card interest rates at 12 to 18 percent, depending on the type of card. Those rates are more or less in line with North America.
Nonetheless, excessive debt continues to plague consumers in China and North America, which could drive shoppers to “debt-free” alternatives, such as:
In China, payment apps such as WeChat Pay and Alipay use QR codes. A reported 98 percent of urban Chinese consumers use their digital wallet for daily purchases. Most consumers do not carry cash.
The result is that Chinese merchants are not burdened by expensive registers and point-of-sale equipment. Merchants simply display QR codes for customers to scan.
North American brick-and-mortar merchants could reduce equipment costs by implementing QR code-initiated payments, such as from PayPal and Square.
In China, entertainment, shopping, social media, payments, and more are combined in “super apps” — typically WeChat. Chinese consumers use one app for:
North American consumers use a single app for one or two purposes, typically. An example is Instagram for sharing images. Only recently has Instagram expanded into shopping and payment acceptance. Perhaps Amazon will evolve into super app status by combining entertainment with shopping.
Despite the political rhetoric in the U.S. to break up Big Tech, merchants should closely monitor the emergence of super apps. If they become anywhere near as popular as in China, those apps could help merchants reach enormous audiences.
Five Ways To Prepare Your Website For Universal Search2024-05-11 10:37
Charts: Future of B2B Events2024-05-11 09:47
‘Impossible Sleep’ Makes Sleep Possible2024-05-11 09:41
Supply Chain Bottlenecks from the Trenches2024-05-11 09:13
Barbell Logic Rides Shift to Online Fitness2024-05-11 08:52
Secondary Markets Offer Pre-IPO Liquidity2024-05-11 08:48
Rivian Write-down Moves Amazon to Q1 2022 Net Loss2024-05-11 08:45
Consumers in a Pandemic Need Murphy Beds2024-05-11 08:45
For Fragrance One, It’s Selling without Smelling2024-05-11 08:40
How to Use SUMIF, SUMIFS in Google Sheets2024-05-11 08:33
July 2021 Top 10: Our Most Popular Posts2024-05-11 11:02
Expand Payment Options to Convert More2024-05-11 10:52
Are Big Changes Coming to Digital Ads in 2022?2024-05-11 10:46
Decision Frameworks Help (Fast-growing) Companies2024-05-11 10:32
Charts: 2023 Global Shopping Trends2024-05-11 09:35
Charts: Supply Chain Disruption Worldwide, U.S.2024-05-11 09:34
Needing Deodorant, Curie Founder Made Her Own2024-05-11 09:32
Charts: Supply Chain Disruption Worldwide, U.S.2024-05-11 09:31
7 Reasons to Consider USPS Flat Rate Shipping2024-05-11 09:30
Charts: Average Order, Cart Abandons, More2024-05-11 08:33