What's New in Payments

Chinese mobile payments providers begin charging fees to users

Tencent’s WeChat widens service fee for users of ‘card repay’ feature in digital wallet — South China Morning Post — “In line with international practice, there are no free financial services. WeChat previously paid the credit card repayment fee for users, going forward the new fee chargeable to customers will support sustainable development [of the service],” said a Tencent spokesman in response to a request for comment.”


Chinese university pilots face recognition for campus access control

Peking University installs facial recognition system for students and staff on campus gate — South China Morning Post — “Anyone going through the southwestern gate of prestigious Peking University can now have their face scanned by a camera instead of showing their ID card to security guards under a trial run of the system that started on Wednesday… It is not the university’s first use of the technology on campus — it has already installed about two dozen facial recognition devices outside some of its libraries, classrooms, student dormitories, gymnasiums and computer centres.”


Citi to let customers check their bank account from within Facebook Messenger

Citi joins chatbot arms race, unveils Facebook messenger tie-up that will launch later this year — South China Morning Post — “Citi’s offering will be the first Facebook Messenger-embedded chatbot to let customers access their own financial records and potentially conduct transactions in future. It plans to roll out the service worldwide following its launch in Singapore in March.”


What's New in Payments

Fake QR code payment scammers arrested in China

Chinese market targeted by scammers who set up fake QR codes to divert payments — South China Morning Post — “A food market in China has been targeted by scammers who used fake QR codes to divert mobile payments into their own account… Three men have been arrested on suspicion of printing out small pieces of paper with the QR codes on them and then sticking them over 60 codes used by traders in Nanjing… The three unemployed men — who were only identified by their surnames Zhao, Zhu and Zhang — reportedly told police they had been inspired by a friend who had made money this way.”


What's New in Payments

Hong Kong bank adds finger vein biometrics to ATMs

Hong Kong lender banking on finger veins being better than faces for ATM security — South China Morning Post — “Bosses at Bank of China Hong Kong said on Tuesday they expected to bring finger vein identification to all of the company’s ATMs across the city, claiming the feature to be more secure than facial recognition. The bank – the first to use the new technology in the city – had already extended it to a third of its cash machines by last month.”


What's New in Payments

Mobile payments gain ground in China’s 600,000 villages

China’s village people fast to adopt mobile payments — South China Morning Post — “The mainland market for mobile payment transactions, which reached US$5.5tn in 2016, is poised for further expansion as many consumers and businesses go cashless in more than 600,000 villages across the country… These villages are administratively categorised below townships, counties, cities and provinces.”


What's New in Payments

Huawei and UnionPay to expand Huawei Pay to Russia

China’s Huawei Pay debuts in Russia, as first port of call in global push — South China Morning Post — “It is a win-win cooperation between two Chinese companies as we join hands to increase the influence that China wields in the global mobile payment businesses,” said Wang Lixin, a vice-president of UnionPay International… In Russia, UnionPay has 400,000 point-of-sale terminals that can accept the Quickpass payment modes including Huawei Pay.”


Chinese government teams up with WeChat to offer digital social security cards

China’s social security system turns to WeChat for electronic ID — South China Morning Post — “Government trials in 26 cities will have Tencent’s WeChat replace traditional state-issued social security cards with digital version tied to users’ accounts… The WeChat-based electronic social security cards will enable users to provide their identification, status, payment records and other relevant information to official online inquiries about benefits and insurance coverage.”


Guangzhou pilot lets consumers use WeChat to create an official digital ID

WeChat poised to become China’s official electronic ID system — South China Morning Post — “The WeChat ID programme was co-developed by the research institute of the Ministry of Public Security and Tencent’s WeChat team, and supported by various banks and several other government departments. The project is expected to help deter online identity theft, as facial recognition technology is used to verify applicants before their virtual ID cards get authorised. Those verified will be able to use their WeChat ID to register in hotels and apply for government services without the need of bringing their physical ID cards.”


What's New in Payments

China UnionPay launches mobile wallet app

UnionPay takes mobile payment services fight to Alibaba and Tencent with integrated app — South China Morning Post — “UnionPay said the app could be linked to more than one bank account by different banks with all of their mobile payment services accepted and conducted via the platform… The country’s dominant bank card clearing service provider also launched a nationwide promotional campaign with aggressive discounts to attract consumers who have been increasingly using Alipay and Tenpay services for shopping.”


What's New in Payments

Alipay pushes into Hong Kong, India, Thailand and the Philippines with Christmas shopping festival

Alipay to hold online 24-hour Christmas shopping festival as part of expansion push — South China Morning Post — “The event will take place in Hong Kong, India, Thailand and the Philippines with Alipay partners in each location: Hutchison in Hong Kong, Paytm in India, Truemoney in Thailand and GCash in the Philippines… As part of the December event, the AlipayHK joint venture has partnered with more than 8,000 bricks-and-mortar stores to offer exclusive gifts, discounts and rewards.”


Transit Ticketing Today

Octopus adds QR payments for taxi rides in Hong Kong

Hong Kong e-payment operator Octopus launches QR code service, aiming to get city’s 40,000 taxi drivers off cash — South China Morning Post — “Hong Kong cashless payment operator Octopus has launched a QR code service aimed at small merchants and the city’s 40,000 taxi drivers, who have long been reluctant to accept anything but cash. The new payment method, which only requires a smartphone on each side of the transaction, eliminates the need for merchants to install Octopus card readers, which at certain locations are bound by technical limitations.”


Transit Ticketing Today

Hong Kong transit operator to test WeChat Pay and Alipay

Contactless competition: WeChat Pay is coming to Hong Kong’s MTR, and Alipay may not be far behind — South China Morning Post — “Commuters on Hong Kong’s MTR will soon be given a new quick payment option as the railway operator has partnered with the mainland’s second-largest mobile payment provider WeChat Pay, it announced on Thursday. WeChat Pay’s main rival, Alipay, said it would follow suit in the ‘near future’… While the initiative arguably benefits mainland tourists more than Hongkongers, it breaks a 20-year stronghold by the contactless Octopus card on how train fares can be paid for.”


Transit Ticketing Today

UnionPay rolls out Apple Pay transit payments in Guangzhou

Buses and subways to become new battlefield for mobile payments — South China Morning Post — “Commuters with UnionPay cards can now pay for their ride with their iPhone or Apple Watch at more than 6,000 subway gates at all stations in the city… Payments will be possible using technology called offline data authentication (ODA), and can be completed regardless of an internet connection… UnionPay estimates 90bn individual trips are made using Chinese buses and subways annually.”


What's New in Payments

Big banks on notice that they’re losing ground to China’s fintech giants

Big banks on notice that they’re losing ground to China’s fintech giants — South China Morning Post — “Tencent, the Chinese company, over Chinese New Year, in five days processed 46 billion payments. Basically that means 800 million payments per hour. Visa has a maximum capacity of processing 25,000 payments per second. But Alipay can process 50,000 payments, twice as much, per second.”


What's New in Payments

Apple unveils promotional campaign to win Chinese consumers to Apple Pay

Apple unveils promotional campaign to win Chinese consumers to Apple Pay — South China Morning Post — “Consumers using Apple Pay to make payments in designated online and offline merchants in mainland China that display the logo of UnionPay’s QuickPass facility will receive discounts of up to 50% and as much as 50 times the usual amounts of reward points for credit cards.”


What's New in Payments

Some Macau cash points deserted as face recognition technology kicks in at ATMs

Some Macau cash points deserted as face recognition technology kicks in at ATMs — South China Morning Post — “One casino employee, who works near an ATM which previously had long queues, said: “I used to see lots of people lining up at the ATMs before but they have vanished since the new machines were installed. Everyone must have gone looking for those without the cameras.”


What's New in Payments

Ant Financial enters Hong Kong market with AlipayHK mobile wallet

Ant Financial enters Hong Kong market with AlipayHK mobile wallet — South China Morning Post — “The mobile wallet and payments app, dubbed AlipayHK, is similar to its Chinese counterpart Alipay — registered users are able to top up their mobile wallets and make in-store payments that are settled in Hong Kong dollars at merchants such as Watsons, Fortress and at supermarkets like ParknShop.”