China in this area is 50 times the size of the United States
Recently, the concept of “cashless” fired, domestic mobile payment market giants WeChat and alipay has sung “cash free day race”, investing to encourage consumers to mobile payment instead of cash. While mobile payment is convenient for people’s life, it also causes wide attention and discussion on issues such as payment security which can be brought by cash flow.
Businesses fight cashless battles
According to the data, the total value of third-party payment in 2016 was rmb58tn, an increase of 85.6 per cent year-on-year. The mobile payment transaction is 38.6 trillion yuan, about 50 times the size of the United States.
Since August, alipay has launched the “cashless city week” campaign, which has been encouraged to send gold. WeChat, however, has a cashless day to encourage gold. Under the figure turned hot new marketing campaign, some stores began openly said to consumer, refused to accept cash, only accept the mobile payment, this behavior caused by some consumers of discontent, causing public opinion is hotly debated.
Article 2 of the regulations on RMB management of the People’s Republic of China stipulates: “the renminbi referred to in these regulations refers to the money issued by the people’s bank of China in accordance with the law, including notes and COINS.” Article 3 further emphasizes: “the legal tender of the People’s Republic of China is RMB. All public and private debts of the People’s Republic of China in RMB shall not be rejected by any unit or individual. The refusal to accept RMB cash is not in conformity with the relevant provisions. Businesses can encourage people to use mobile payments, but they can’t refuse cash.
Don’t ignore the “silver hair generation”
In fact, “cashless” reduces transaction costs, makes life easier, and saves social resources. But the convenience of “cashless society” can also be detrimental to another group of people, such as old people who will not use mobile banking to pay for mobile payments.
By the end of 2016, the number of elderly people aged 60 and above reached 23,086, accounting for 16.7 percent of the total population, according to the 2016 statistics bulletin on social service development released by the ministry of civil affairs. Most older people are affected by traditional trading methods, technology, equipment and other factors, and are still used to using visible and tangible cash. “Cashless” society often means more trouble than convenience for them.
Easy payment comes with worries
For “cashless” initiative, although WeChat, alipay, etc are clear, not to refuse to cash, but more than one kind of payment options, but the information security problems, risk for unauthorized and privacy problem that nots allow to ignore, not only look at convenient regardless of the risk.
The 2016 mobile payment safety survey released by China unionpay has revealed that the 2016 telecom fraud cases continue to be high, and the proportion of consumers’ losses continues to rise. According to the survey, more than 80 percent of respondents who were subjected to telecom Internet fraud suffered misappropriation of social accounts, a 36 percentage point increase from 2015.
Pay risk or reverse the financial system reform
In addition to pay the risk, such as security, the unauthorized third-party payment market currently that there are many participants, imbalance between supply and demand, excess competition in the market, to the consumer protection is not enough, the phenomenon such as cover is appropriate.
According to statistics from the China payment and clearing association, the number of books paid by non-banks in China increased from 33.77 billion yuan to 970.51 billion in 2013 to 970.51 billion, and the annual compound growth rate was 195.09%.
In 2015, zhejiang lewes became the first be revoked in accordance with the third party licences prepaid enterprise, the company is a large amount of misappropriation of clients cover, forge alter trading and financial information, make payment business, and other major violations. Then, guangdong yimin and haichang were suspended by the central bank, and the result was a large amount of prepaid card funds.
Industry insiders analyze that these violations will reverse the reform of the financial regulation system, and the payment and settlement method will be made through the improvement of the bank payment system and the regulatory system.