Hong Kong, “The Red Restaurant” “Chen Hong Restaurant” The waiter of Chen Genji faced the mainland tourists repeatedly, “We only accept cash and do not accept any third party and credit card payment. “The taxi driver next to the restaurant will still declare in advance "We can't support WeChat or Alipay." ”
Relatively speaking, only a few hundred meters away in a large shopping mall is another scene & mdash;& mdash; WeChat payment and Alipay posters often appear in a store at the same time, support for mobile payment has become a gimmick to attract tourists.
This is the typical tip of the mobile payment market in Hong Kong. Mainland mobile payment agencies are trying their best to “take over” and the scant code payment is still far from the popular daily consumption scene of Hong Kong people.
Hong Kong people love cash, but the Hong Kong market does not naturally exclude mobile payments.
In August 2016, WeChat Payment and Alipay and Octopus cards got the first batch of Hong Kong savings payment instrument licenses, and the Octopus card is a big mountain for mainland mobile payment agencies. The Octopus Card, which was born in 1997, supports almost all the daily consumption scenarios in Hong Kong: fast food restaurants, convenience stores, buses, subways, and ferries.
As of 2017, there are more than 34.5 million Octopus cards on the market, equivalent to an average of 4 Octopus cards per person in Hong Kong. The number of daily transactions exceeds 13 million and the amount exceeds HK$150 million. Looking separately at retail, the Octopus system currently processes an average of more than 14 million transactions each day, with an amount of more than 194 million yuan. There are more than 9,500 service providers in Hong Kong accepting Octopus payments at more than 21,000 retail outlets.
Red packet subsidies are still the preferred route for rapidly increasing market share.
Wechat Payment Red Packet Poster in Hong Kong Shops
According to the 21st Century Business Herald, during the Spring Festival of 2018, WeChat Payment spent approximately HK$35 million to start a subsidy promotion and cooperated with a number of merchants including Sun Hung Kai Properties’ shopping malls, McDonald's, and Japantown. From the data point of view, the effect is also very intuitive ——Official data from WeChat Pay HK, during the Lunar New Year (February 1st to 28th), the user successfully "stuck away" more than 10 million The Hong Kong dollar WeChat profit (red envelope). The number of new registered users increased by 44% in February. More than one million Hong Kong people opened the WeChat Pay Wallet feature.
The red envelope is still a marketing tool, but in the absence of WeChat's strong social stickiness, the benefits of red envelopes to user retention are not as expected. Titanium media editor interviewed Chen Qiru, deputy general manager of Tencent Financial Technology in Hong Kong, ""Although there are many users of Hong Kong WeChat, the activity is not particularly high. Although we have promoted red envelopes, Hong Kong and the Mainland cannot compare with each other.& rdquo; Chen Qiru said.
WeChat Payment has encountered difficulties faced by domestic competitors in overseas countries. It is difficult to retain users purely through subsidies. In those overseas markets outside Wechat's social “ territories ”, to promote payment services, new ideas are needed.
Win more vertical scenes overseas and conduct more in-depth operations. Currently, WeChat Payment has expanded into Hong Kong Disneyland, Hong Kong Ocean Park, Sa Sa, Bonjour, Chow Tai Fook, Luk Fook Jewellery, Emperor Jewellery Watch and Clock, Broadway and other brand stores in the Hong Kong market.
More importantly, WeChat payment needs to cover scenarios where the Octopus and credit card plastic cards cannot be implemented.
“Developing mobile payments in Hong Kong cannot be just a paymentIf you just want to swipe your card, you don't need to use scan code. We hope to use social networking to extend the services of the screen itself, such as small programs and public numbers to bring more services. & rdquo; Chen Qiru said.
To some extent, Hong Kong has become the touchstone for payment institutions to enter the European and American markets. The Hong Kong financial system, which relies on banks, debit cards and credit cards, is in line with the Western financial system. For Tencent Alipay, the competition for market share is not limited to the coast of the Xiangjiang River. What they value is a broader overseas market.
The following is an interview and dialogue between Titanium Media and Tencent Financial Technology Deputy General Manager Chen Qiru.
Both NFC and QR codes exist in Hong Kong
Q: What are the plans for Tencent to pay for the interconnection in the Greater Bay Area?
Chen Qiru:This year is a very important year for the Hong Kong WeChat wallet. We will support the Mainlanders to Hong Kong accounts to facilitate payment in the context of the development and integration of Guangdong, Hong Kong and Macau in the Greater Bay Area.
On the other hand, we also support the use of Hong Kong wallets by Hong Kong users to facilitate the use of merchants in the Mainland to break the pattern of non-interworking and interconnection between wallet systems. This will facilitate the interconnection and interoperability of individual users, businesses, and financial services within the Bay Area, and it will also help people in the Greater Bay Area to enjoy more convenience in life across regions.
Q: Hong Kong mobile payment habits NFC payment. WeChat is based on scanning code, how to cultivate their scanning habits? WeChat has already achieved public travel scan payment in many cities. Is there a similar expansion plan for WeChat in Hong Kong?
Chen Qiru:For the two payment methods of NFC and two-dimensional codes, both have their own advantages through the accumulation and experience of the past payment fields. Because NFC has certain advantages in information storage capacity, security, and convenience, it cannot be denied that the two-dimensional code is easy to copy and use in many areas, and the hardware requirements are very low. Even a piece of paper can be placed on a cash register. Realize the collection service. Personally, I think that Hong Kong will have both in one phase. However, in the future, which approach will be the dominant one, I think there are still many possibilities.
In addition, the two-dimensional code also has a lot of room for development. For those who have experience in both places, the Mainland has already formed the habit of scanning and payment, so Hong Kong is also happy to accept payment by QR codes. Hong Kong's two-dimensional code will have a lot of room for development within a certain range. I think the future depends on different occasions, different security requirements for merchants, different requirements for hardware devices, and so on. At the same time, we are also concerned about the development of NFC technology and the needs of merchants. If possible, we will do some practice and experiment, that is, the development prospects of the two technologies in Hong Kong.
In the future, we will communicate with Hong Kong transportation service providers, such as bus and subway service providers. Therefore, in the future, we will see services such as bus rides in Hong Kong’s transportation sector. At least some channels will be used to support QR codes.
Q: In the process of cooperation with organizations such as Octopus, how to balance their conflicts of interest?
Chen Qiru:Now banks and payment agencies need each other and everyone can even share accounts. In the traffic scene, we will cooperate with the MTR and Octopus and have already conducted pilot shopping with the MTR at the station. For Octopus, we are both competitors and partners. If you do not open up resources to each other, it will be unprofitable for everyone to expand the market. Our partners, including Octopus, are more open in their communication, not the relationship we persuade each other. We all need each other, but in the process, we must look at how to balance each other's interests and achieve a win-win situation.
Q: Tencent pays attention to the future development and layout of the sea. In the area of Southeast Asia, the construction of financial infrastructure is relatively backward. How to solve this problem?
Chen Qiru:Tencent's cross-border payment expansion to the sea is simply two lines. A line is a development path that follows Chinese outbound travel. With the upsurge of Chinese outbound travel, outbound travel is largely bought and bought. We will follow the footsteps of Chinese tourists. For example, in Southeast Asia, Europe and the United States, we have supported more than 20 countries and regions in using WeChat. Therefore, we will pay attention to the path of Chinese outbound travel and gradually support WeChat payment in popular scenic spots.
On the other hand, we also applied for local payment licenses in Hong Kong and Malaysia. Because these two regions are relatively high in overseas users, we will provide convenient services to local users in Hong Kong and Malaysia in a matching model.
In addition, we are concerned about new markets in Southeast Asia. The infrastructure of some countries in Southeast Asia, including the lack of entry and exit channels and reserve talents, is increasingly pressing for local demand for such payments. So we are looking for suitable partners to jointly develop local mobile payment facilities and services. For the shortage of talent, Tencent is also willing to provide more rapid payment platform replication and expand local standards and capabilities. This is what we are trying to promote, and push China to more places under the global leading platform for mobile payment.
The promotion effect of red envelopes is incomparable with the Mainland.
Q: What is the status quo of the development of the mobile payment industry in Hong Kong?
Wechat pays for Hong Kong, we think that it is now a relatively elementary stage for Hong Kong purses, and there are still great difficulties in the development of mobile payments in Hong Kong. I speak frankly because the actual situation in Hong Kong is different from that in the Mainland. In the development of mobile payments in the Mainland, there are two carriers and driving factors. One is e-commerce, because China's vast territory and resources, you have to buy another area of things must go through e-commerce. Hong Kong is not the same. It may be that a small shop downstairs can buy what you want.
Another driving factor is undeniable that in 2014, Weixin Red Packets has greatly promoted the development of China Mobile Payment. Everyone has got a lot of balance in the account through playing red envelopes, and spending in the merchants and stores through the balance, so wechat payments are increasingly infiltrating people's lives.
In Hong Kong, although there are many WeChat users, the activity is not particularly high because many people in Hong Kong use other social systems. Although we have promoted red envelopes, Hong Kong cannot compete with the Mainland.
In addition, Hong Kong is too mature in many aspects of finance, so the pain points are not strong. Our idea is that the development of mobile payments in Hong Kong cannot be just paid. If you just want to swipe it, you don't need to scan it. Therefore, we hope to use social networking to extend the services of the screen itself, such as small programs, public numbers to bring more rich services, rather than plastic cards can solve the problem. We hope that this service will bring more convenience to the people of Hong Kong. This is what we are exploring in depth with various merchants and agencies in Hong Kong.
Q: Will WeChat Payment be used in Hong Kong to play "red packet warfare?"
Chen Qiru:I think social is the advantage of Tencent. In the future, we will inject more social elements into Hong Kong and Malaysia. However, judging from the current experiment, social networking itself alone is not enough to drive mobile payment to land in Hong Kong. The use of WeChat in Hong Kong is not as active as the mainland. The red envelope is something we will try with many partners in Hong Kong in the future. Trying to use the AR to find red envelopes in the Mainland is a very interesting idea. We will bring some interesting experiences and gameplay to Hong Kong.
In the second half of this year, we can see that there are more trials with local merchants, companies, and institutions in Hong Kong. We will support the users of the two places in the future, including users from the Mainland and Hong Kong, who can experience it at the same time.
Q: How do you view overseas competition with other payment platforms such as Alipay?
Chen Qiru: It is not convenient for me to comment on other payment agencies. However, I think that if a payment institution is to develop in Hong Kong, there must be reasons behind it. There is no mature e-commerce in the Tencent system, or Tencent has no self-built e-commerce model, and everyone may feel that there is a difference (with Alipay).
However, it may not make much sense to see who has more or fewer shares in the early stages of Hong Kong's development. It is not yet possible to compete with each other in the Red Sea. Even in a sense, we can cooperate with merchants to use together. This is my point of view.