As the world of eCommerce continues to take the economy by storm, it's important to examine the intricacies of digital payments. As such, the United Nations–based Better Than Cash Alliance conducted a study that closely examined two of the largest digital payments enablers, which are both based in China.
Through this study, it was found that these two entities, Alipay and WeChat Pay, were responsible for $2.9 trillion in digital-based payments during 2016. It was found that China's integration of digital payments into existing online platforms helped boost its economy by providing ways to open up financial opportunities for everyone. A whopping 63 percent of the digital payments market share in China was driven by Alipay and WeChat users to help expand financial services into new areas.
Better Than Cash Alliance's managing director, Ruth Goodwin-Groen, commented on the power of digital payment integrations. She said, "Social networks and eCommerce platforms are growing in every economy, whether large or small. In China, payments are thriving from these channels, bringing millions of people into the economy."
Digital payment providers are moving outside of China and into other Asian territories like Thailand to continue to expand finance options to underserved communities. With 51 percent of global mobile connections being via smartphones and 34 percent of the world's population accessing social media through this platform, it's likely that we'll see more financial institutions integrate some form of payment options.