A new UN study has revealed that Alipay and WeChat Pay enabled US$2.9 trillion in Chinese digital payments in 2016, representing a 20-fold increase in the past four years.
The data shows that digital payments, using existing platforms and networks, provide access to a wider range of digital financial services, expanding financial inclusion and economic opportunity throughout China and neighboring countries.
The new report by the UN-based Better Than Cash Alliance, Social Networks, E-Commerce Platforms and the Growth of Digital Payment Ecosystems in China – What It Means for Other Countries, contains key lessons to help other countries include more people in the economy by transitioning from cash to digital payments. This shift could increase GDP across developing economies by 6 percent by 2025, adding US$3.7 trillion and 95 million jobs, according to a McKinsey Global Institute report.
“Social networks and e-commerce platforms are growing in every economy, whether large or small,” says Ruth Goodwin-Groen, Managing Director at the Better Than Cash Alliance. “In China, digital payments are thriving from these channels, bringing millions of people into the economy. This matters because we know that when people – especially women – gain access to financial services, they are able to save, build assets, weather financial shocks, and have a better chance to improve their lives.”
“Widening access to financial services has always been at the heart of Ant Financial’s mission and we are proud to
have empowered more people to save, invest and gain access to capital. There is a quiet revolution underway and we know, firsthand, that our services are making a real difference to hundreds of millions of consumers. But, as this groundbreaking UN report highlights, this revolution is only just beginning. We see tremendous potential
to bring many more people into the financial system, in China and markets around the world,” says Eric Jing, CEO of Ant Financial Services Group, which operates Alipay.
Key findings from the report:
· More people have opportunities to save and invest. Platforms such as Alibaba’s Yu’e bao make investing money into diverse sets of financial products more accessible for low-income populations. These products allows them to invest the money left on digital accounts, leading incrementally to long-term savings. From 2013 to 2016, Yu’e bao has grown to manage US$117 billion and is now serving over 152 million customers.
· Digital finance helps dramatically increase access to capital for small merchants. As of September 2016, a total of RMB 740 billion (US$107.3 billion) had been lent on the Alipay platform to over 4.11 million small and micro enterprises and entrepreneurs.
· Big data generated through these platforms helps to build credit-scoring history and boost access to credit, particularly for low-income financially-excluded populations. For example, Sesame Credit offers an alternative creditworthiness assessment by examining the credit history, financial behavior, contractual capacity, identity, and social networks of users.
The study also found both Alipay and WeChat are expanding beyond China and investing in major fintech and payments providers. They are joined by other major communication platforms, utilizing existing social networks and e-commerce platforms to drive digital payments and financial inclusion. The report found opportunities especially strong in countries with a high smartphone uptake and collaboration between the private and public sectors:
· In South Africa, 78 percent of all internet traffic takes place over mobile channels – one of the highest rates in the world. However, despite the continued growth of adoption rates, only 15 percent of South Africans reported making a purchase on a mobile phone in the preceding month when surveyed in 2016.
· In India, both Ant Financial and Tencent have bought into the Indian mobile payments market, which is enjoying rapid growth under new regulation. Ant Financial and Alibaba have invested up to $900 million in PayTM, as well as sharing staff and technical expertise. The result: PayTM has grown from 5 million to around 200 million users in just the last few years.
· Indonesia was the fastest-growing m-commerce market in the world in 2016, expanding 155 percent from January 2016 to January 2017. Some of this growth may be due to the release in 2015 of BBM Pay’s Instant Mobile Payments. The popular BBM chat app has over 55 million users in Indonesia and continues to develop.
· In South America, markets have the infrastructure necessary to build payment ecosystems similar to those seen in China. Fifty-nine percent of the South American population uses social media, and 52 percent connect with social media over their mobile phone. Yet the digital payments space remains fractured, and no payments provider has linked their service to these platforms in a significant way, or vice versa.
Auto rivals team up for connected car demo
Rivals BMW, Ford and Groupe PSA, maker of Peugeot and Opel cars, have teamed up with the 5G Automotive Association (5GAA), Qualcomm Technologies and Savari for Europe’s first live demonstration of C-V2X direct communication technology operating across vehicles from multiple auto manufacturers.
The live demonstration also featured a live showcase of C-V2X direct communication technology operating between passenger cars, motorcycles, and roadside infrastructure. C-V2X is a global solution for vehicle-to-everything (V2X) communication in support of improved automotive safety, automated driving and traffic efficiency.
The demonstration exhibited the road safety and traffic efficiency benefits of using C-V2X for Vehicle-to-Vehicle (V2V) collision avoidance, as well as Vehicle-to-Infrastructure (V2I) connectivity to traffic signals and Traffic Management Centers (TMC). C-V2X was operated using real-time direct communications over ITS spectrum and demonstrated its ability to work without cellular network coverage, and underscores its commercial readiness for industry deployment as early as 2020. Superior performance and cost-effectiveness compared to other V2X technologies, along with forward-compatibility with 5G, make C-V2X direct communications a preferred solution for C-ITS applications.
Six demonstrations were shown including: Emergency Electronic Brake Light, Intersection Collision Warning, Across Traffic Turn Collision Risk Warning, Slow Vehicle Warning and Stationary Vehicle Warning, Signal Phase and Timing / Signal Violation Warning and Vulnerable Road User (pedestrian) Warning. The vehicles involved included two-wheel e-scooters provided by BMW Group, and automotive passenger vehicles provided by Ford, Groupe PSA, and BMW Group, all of which were equipped with C-V2X direct communication technology using the Qualcomm® 9150 C-V2X chipset solution. V2X software stack and application software, along with roadside infrastructure, were provided by industry leader, Savari.
C-V2X is globally supported by a broad automotive ecosystem, which includes the fast growing 5GAA organization. The 5GAA involves over 85 global members comprised of many leading automakers, Tier-1 suppliers, software developers, mobile operators, semiconductor companies, test equipment vendors, telecom suppliers, traffic signal suppliers and road operators.
Cellular modems will be key to the C-V2X deployment in vehicles to support telematics, eCall, connected infotainment and delivering useful driving/traffic/parking information. As C-V2X direct communication functionality is integrated into the cellular modem, C-V2X solutions are expected to be more cost-efficient and economical over competing technologies, and benefit from accelerated attach rates. C-V2X direct communication field validations are currently underway in Germany, France, Korea, China, Japan and the U.S.
C-V2X currently stands as the only V2X technology based on globally recognized 3rd Generation Partnership Project (3GPP) specifications, with ongoing evolution designed to offer forward compatibility with 5G. C-V2X also leverages and reuses the upper layer protocols defined by the automotive industry, including the European Telecommunications Standards Institute (ETSI) organization. C-V2X includes two complementary transmission modes:
- Direct communication as shown in this demonstration for V2V and V2I use cases
- V2N network communication, which leverages mobile operators for connectivity and delivers cloud-based services, including automated crash notification (ACN, as mandated by eCall), hazard warnings, weather conditions, green light optimal speed advisory (GLOSA), parking spot location, and remote tele-operation to support automated driving, to name a few.
“This demonstration builds on the successful C-V2X showcase we organised with our members Audi, Ford and Qualcomm in Washington DC in April, said Christoph Voigt, Chairman of 5GAA.
“We are excited to witness the growing momentum behind this life-saving technology and to see our members working together to deploy C-V2X, and to make it hit the road as soon as possible.”
“The BMW Group introduced the first C-ITS use cases already in 2013 with the market introduction of the BMW i3. Today most of envisaged C-ITS use-cases are already institutionalized. With the implementation of C-V2X, the BMW Group accomplishes the last set of the puzzle with a practical path to C-ITS showing quick benefits,” said Christoph Grote, Senior Vice President Electronics, BMW Group.
“With its ability to safely and securely connect vehicles, along with its evolution into 5G, C-V2X is integral to Ford’s vision for future transportation in which all cars and infrastructure talk to each other,” said Thomas Lukaszewicz, Manager Automated Driving, Ford of Europe. “We are very encouraged by preliminary test results in Europe and elsewhere which support our belief that C-V2X direct communications has superior V2X communication capabilities.”
“We’re moving forward with seamless communication between cars and their environment for enhancing road safety, as well as our customers’ safety,” said Carla Gohin, Group PSA’s Vice President for Research and Advanced Engineering. “Following the first European C-V2X direct communications demonstration we hosted with Qualcomm Technologies last March, we’re pleased to work with leading automotive and technology companies today to highlight that C-V2X interoperability is a reality.”
“This demonstration of interoperability between multiple automakers is not only another milestone achieved towards C-V2X deployment, but also further validates the commercial viability and global compatibility of C-V2X direct communications for connected vehicles,” said Enrico Salvatori, senior vice president & president, Qualcomm Europe and MEA. “We look forward in continuing to work alongside leaders in the automotive industry, like the 5GAA, BMW Group, Ford, Groupe PSA and Savari, to help advance the automotive industry’s shift towards a safer, connected and more autonomous future.”
“As one of the V2X pioneers, our company is extremely pleased to continue to help enable the next step in the V2X revolution that we helped start back in 2008,” said Ravi Puvvala, CEO of Savari. “For the last year and a half, the Savari team has worked diligently alongside the dedicated C-V2X engineers in the 5GAA partnership. The resulting string of increasingly impressive demonstrations is continuing to convince the world that C-V2X will soon be deployed around the world.”
Win a Poster Heater with Gadget and Takealot.com
This winter Gadget and Takealot.com are giving away three Poster Heaters, which look like posters but become heaters when you plug them in.
Three Gadget readers will each win a unit, valued at R550 each. To enter, follow @GadgetZA and @Takealot on Twitter and tell us on the @GadgetZA account how many Watts the heater consumes.
What’s the big deal about these heaters? Many of us are struggling to keep the balance between soaring electricity costs and the need to keep warm this winter.
However, the recently launched Poster Heater by EasyHeat and distributed in South Africa by Takealot.com is not only one of the most cost effective electric heaters currently on the market, it is also easy to setup and use.
As the name indicates, it is a poster similar to one you would hang on a wall. But, plug it in and it turns into a 300 Watt heater. The Poster Heater isn’t designed to heat hallways or large rooms, but rather smaller ones like a bedroom or a baby’s nursery or a dressing room.
It uses radiant heating, which means that it heats up in a couple of minutes and the heat is directed at the objects or people around it, quickly taking the chill out of the air and providing a comfortable ambient temperature.
The other advantage of radiant heating is that it doesn’t dry out the air like infrared or gas heaters. Users also don’t have to worry about their children or pets getting too close to it because, even though it gets hot, it can be touched.
To enter the competition follow the steps below:
Competition entry details:
3. The competition closes on 31 July 2018.
4. Winners will be notified via Twitter on 1 August and Takealot.com will be in touch to organise delivery.
5. The competition is only open to South African residents.