A financial services recruiting firm that seeks to stay ahead of the game looks at what is currently happening in the market and what directions clients are trending in. Right now, mobile payments seem to be one of the strongest markets in both the short and long terms. We say this based on China now being the next hotbed of mobile payments for both Apple and Samsung.
Apple Pay has already become dominant in the UK, the US, Canada, and Australia for mobile payments utilising smartphones. Never content to stand idle, Apple announced earlier this year (2016) its plans to take its mobile platform to China. The company is currently working on a roll-out with state-owned China UnionPay, which just happens to be the only provider of bank cards in China.
Samsung responded by announcing its own China programme to be launched at some point in March. They also plan to expand Samsung Pay to the UK, Australia, Canada, Spain and Singapore later this year. Their biggest emphasis will undoubtedly be on developing the Chinese market and further expanding in the States.
Why China, Why Now
The question some are asking is why a heavy emphasis on China right now? It is a matter of taking advantage of China's purposeful effort to establish a consumer-based economy rather than relying so heavily on exports. We know exports built what is now a very strong manufacturing base in China, but those exports will not last forever. The Chinese government is now trying to encourage its citizens to spend money on domestically manufactured products rather than buying from overseas.
Switching to a consumer-based economy means more of the money earned by Chinese workers remains in China. In order to encourage a transition to consumerism, electronic payments must be considered. Leading the way are mobile payments that allow Chinese consumers to pay with a smartphone. Already, consumers can use services like Apple Pay at fast food restaurants, convenience stores, and a growing number of local retailers in the larger cities.
Murray McIntosh is a full-service financial services recruiting firm representing some well-known industry names in the recruiting process. Our knowledge of financial services, combined with market observations, tells us that China is on the verge of being the next hotbed of mobile payments. Whoever succeeds in China will have a definite market advantage.