The Five Trends to Watch in Commerce and Payments are all "MADE IN CHINA."
No surprise, AI is first on the list, but what trend did they miss?
The Top 5 trends in commerce and payments are all big steps in payments for the West, but don’t be surprised if most are “Made in China.”
First the trends. How they’re Made in China in 👊STRAIGHT TALK👊 below.
TREND 1: Artificial intelligence. Takes center stage.
Use cases include enhancing operational efficiencies for clients, boosting customer support, managing fraud and risk, and delivering friction-free payments and authentication.
TREND 2: Embedded payments. Make them work for your business.
The global market for embedded payments is expected to more than triple and surpass $138 billion in the five-year period ending in 2026.
TREND 3: Security and fraud prevention. Rise to meet fresh challenges.
Some estimates say 35% of e-commerce transactions are malicious. Over the next decade, fraud is expected to cost the card industry over $400 billion, and every dollar lost to fraud costs businesses $3.75.
TREND 4: Live commerce. Makes an impression, and the sale.
Live commerce debuted in China nearly a decade ago, and now it is entering the global marketplace with force. Companies that embrace live commerce could see upward of 25% top-line growth.
TREND 5: Next-gen digital experiences. Quick, convenient, fun.
Are these really next-gen? Phone-to-phone contactless payments, gamification of payments, and autonomous checkouts have all been around in China for 5-10 years!
So how many of these five are “Made in China?” It turns out that four of them are distinctively Chinese.
Of the five, AI is the most neutral because Western card networks have been using machine learning for years. So, this isn’t uniquely Chinese. As for personalization, China has an advantage; its been personalizing video and e-commerce streams for ages with AI. Look at TikTok!
Emedded payment, here the Chinese have been embedding pay by WeChat or ALipay QR codes since 2015! So, hands down, this is China’s expertise, and it undoubtedly works!
Security and fraud prevention, beyond the aforementioned machine learning, Chinese payment platforms have been using AI facial scans for payment since around 2017. Alipay operates at a fraud level of 1/10,000 that of US “card not present” transactions! Chinese platforms are ahead by miles.
Live commerce is admittedly Chinese. Even the document says this. I think it’s a winner due to the increase in video watching we’re witnessing. I confess that I’m watching more videos!
Next-gen digital experiences? Oh please! China has had Phone to Phone contactless since 2014, with gamification in the form of coupons, points or actual games for quite a while. Ant Forest, launched in 2016, is an example! Alipay launched autonomous check-out with facial scan “Smile to Pay” in 2017!
WHAT TREND DID THIS DOCUMENT LEAVE OUT?
I’ll give you a hint:
The QR code from my book “Cashless!” QR codes are everywhere in China and do far more than embed payments in some surprising places!
QR CODES! While the US is behind in QR use all of Asia and Africa have gone to QR codes. Even the EU is making progress and global networks like Alipay+ will hasten the transformation! So where are QR codes?
So there you have it, the West’s payment trends are for the most part “Made in China.”