Mobile payment in China became popular thanks to the use of QR codes, making the payment process extremely easy, users only need to scan the code for smartphones.
But now, when QR codes are becoming more popular in countries other than China, technology giants in the world's most populous country are turning to a new mobile payment system. more: face detection. Companies like Ant Financials – a subsidiary of Alibaba, and WeChat – backed by Tencent, have begun using face recognition.
The face detection payment system is not only easier and more secure, but also more convenient than the method of scanning QR codes. In addition, using this new method may help increase the use of mobile payments because it is more suitable for users of less sophisticated technology, such as the elderly.
Alipay first launched Dragonfly face recognition system – an upgrade of the Smile-to-Pay system – last December. Since then, the company has expanded its system to more than 300 cities in China.
Continuing with Alipay, about 3 months later, rival WeChat Pay also started supplying equipment to merchants. WeChat's device is capable of scanning both customer faces and QR codes when making payment. However, this company has not shared any statistics regarding its new payment system.
The deployment of this new face recognition system has brought a new breeze in the shopping experience. During the payment process, all the users need is to select the face recognition form to make a payment, then look at the tablet's camera. Once confirmed, the corresponding amount will be deducted from the user's account. They didn't need to pull out their phones to scan the QR code and then take a few more steps to pay as before.
The new payment method also helps reduce dependence on cashiers. For example, Alipay is currently implementing solutions such as vending machines and self-payment machines, both of which use face scans to handle user billing processes.
The battle for market share in the mobile payment market in China is mainly a battle between the giants WeChat Pay and Alipay. According to recent reports, the combined market share of both companies together accounted for more than 90% of China's mobile payment market last year. Both have almost equal market share, specifically WeChat Pay, which accounts for 45% of total transactions, while Alipay accounts for 46%.
There are about 583 million users using mobile payment technology. With more than 562 million Chinese people still not using the Internet, the mobile payment market can still grow stronger.
Reference: GizmoChina