Mobile Payment Market And Its Development In China

In recent years, Mobile payment business growth rapidly, a lot of new products (wallet, NFC smart phones, mobile POS solutions) are launched in the corners of the world. The mobile payments also have very big development space in China. First, because China has the world’s largest mobile phone users in the market; Second, compared with the pace of global mobile payment service development, the mobile payment market in China starts relatively late. This year, the central bank issued the document which related to promote healthy development of the mobile financial technology innovation, indicate the direction of the mobile financial development.However, despite the huge potential for development of mobile payment, and higher heat over the years, but the share of the market is still very small, adoption have not reached the desired level. In the market of our country, mobile payment seems to be just as micropayments to fill a particular niche. This requires us to do an in-depth analysis of the market of mobile payment, reveal the hindering factors in market.This paper analyses the standard setting process and diffusion process of mobile payment, at the same time, builds a basic framework for analysis, which will point out that not unified standard of mobile payment is the primary factor hindering the development of the mobile payment. Mobile payments development is not only a technical matter, but also is a business problem that is delaying the launch of mobile payments. In addition, in different companies, industries, regions and countries, if the standard not unified, the provided technology products and market demand will produce certain gap. So, the market cannot provide users with a seamless experience environment. The stakeholders (e.g., business, mobile network operators, financial institutions, the third party payment service providers, government) involving in the mobile payment business process design, which under the influence of mobile payment, but also influence the development of the mobile payment. In our country, for example, due to the heterogeneous interests between financial institutions and mobile network operators, standards development process is complicated. Then, there are four different types of mobile payment operating mode in the market.Analysis showed that financial institutions and mobile operators cooperation is necessary to produce a set of consistent and interoperable mobile payment standard. The restrictions of each link and the core advantages in the mobile payment industry chain are different. In our country, the development of mobile payment mode should be financial institutions and mobile network operators as an important part of win-win mode, the third-party payment service providers to coordinate and support as auxiliary. At the same time, the regulation and legislation department should also implement the correct detection and control in the mobile payment market, which ensure the safety of the user’s payment account and promote the healthy development of the mobile payment market.