China has yet again taken a step ahead on the digital front. The country is dominating the technological world and is continuing to do so. Its online payment apps are blooming and have big shot companies like Alipay and WeChat Pay. People in China will now be able to pay with their phones in brick-and-mortar shops, cafes and restaurants.
This step to digitally pay for their bills will prove to be one of the most ground-breaking innovations on the digital finance front. The penetration rate has increased to up to 32 percent, the highest in the world. Digital payment apps are being widely adopted by businesses and consumers alike. This has made the digital finance bloom much more in the country.
With this, we are now seeing a swift transition of the world from the use of credit and debit cards to total online reliability to manage their finances. There are several benefits for that, with the significant benefit being of no fear of losing money in an unfortunate event of mugging.
However, the number of transactions made on payment apps is still more significant in the US and European countries like Germany, France, and the UK than in China. An average consumer in China spent about $1600 with payment apps in 2019, whereas an ordinary consumer would pay $4400 in the UK and $7000 in the US Scandinavian countries.
The adoption of payment apps in China will inspire other Asian countries like India, South Korea and Vietnam who have developed digital finance management, but their numbers are very low.
Take a look at the following infographic for more details on the penetration rate.
Infographic by: statista.com