Is Mobile Payment a Better Choice?
What is Moblie Payment?
Goddard’s article in“What is Mobile Payment – Types, Benefits and Examples”(2021) discusses that mobile payment is any use of a carriable electronic product to transfer and receive money, including mobile wallet, QR code and remote payments, and so on.
The Development of The Mobile Payment
According to“Mobile payments to replace cards and cash, but not immediately: report”(2017), it claims that mobile payment will substitute credit cards and cash someday, but it will not change at once. With the advance of science and technology, more and more people believe that smart phones and network are essential parts of people’s life. Therefore, mobile payment is well-known, and the penetration rate has also rise substantially. It brings a lot of advantages to modern people, making lives more convenient. That is the reason why the mobile payment users increase dramatically.
Furthermore, based on TPEFEX (2021)’s data, average daily transaction amount of mobile payment worldwide from 2015 to 2021 has grown from 600 million to 2.5 billion. The proportion of global mobile payment usage has increased dramatically. Because of the COVID-19 has broken out in 2021, people are worried that the virus will spread through by banknotes and coins and governments have implemented measures such as city lockdowns and home isolation, reducing the opportunities for people to interact face-to-face and driving the growth of the mobile payment industry (see Figure 1).
Is Mobile Payment a Better Choice?
Since it has been a current trend, is it really a better choice to replace currency? In our opinion, there seems no one-shot solution for its implementation because of several barriers. Based on TPEFEX (2021), they point out improvement methods such as the following.
Improvement Methods
Government must be building better mobile payment infrastructure to sort out the severe challenge of the speed and scope of the popularization of the mobile payment.
Government must be legislative amendment to regulate merchants and protect customer rights.
Government must be conduct cross-functional cooperation to provide Internet sharing service, it makes information equal and no gaps.
Government must be increasing the penetration of electronic devices because according to MerchantSavvy (2019), only 13% of the population over 55 years old use mobile payment. The lowest proportion of elderly people use mobile payment. The elderly population uses the lowest proportion, and the elderly population is large, so it is necessary to increase the proportion of electronic products used by this group (see Figure 2).
Conclusion
In conclusion, we consider that mobile payment is a better choice in the future. For the moment, government and non-governmental organization are still many factors to overcome, including that build mobile payment infrastructure more perfect, legislative amendment, conduct cross-functional cooperation and increasing the penetration of electronic products.
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