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Digital Payments: How the U.S. Can Keep Up With China

The eCommerce share of total Chinese retail sales is growing with incredible advances. The U.S. must catch up to the growth of Chinese digital payments. How can this be done? Just keep on reading below to know!

Digital Payments Growing: U.S. & China

The U.S. Department of Commerce reports that eCommerce accounted for 9.8% of total retail sales in Q3 of 2018. As for China’s eCommerce, it made up 16% of total retail in 2016, as the Goldman Sachs’ China E-Commerce Shopping Re-Imagined Report showed.

According to the Goldman Sachs’ China E-Commerce Shopping Re-Imagined Report, the growth is driven by several factors. E.g., the number of people making purchases online, shortened delivery times of fulfillment centers, increased online spend, as well as higher coverage of underpenetrated sectors.

Did you know that the vast majority of Chinese online shoppers are millennials? They are kind of digital natives, so it’s quite natural that the mobile phone is the preferred method of eCommerce for them.

Here’re the most important points the U.S. should take into account while keeping up with digital payment processing in China:

  • The eCommerce share of total Chinese retail sales is growing by over 50%
  • The mobile phone is the most widely used channel for eCommerce in China
  • E-wallets are playing a key role in eCommerce in China
  • Online Chinese shoppers made a cross-border eCommerce purchase in 2018 and they mostly preferred merchants based in the U.S., Australia, and Japan
  • 3rd party mobile payment providers, including Alibaba’s Alipay and Tencent Holding’s WeChat Pay, have significantly extended their offerings to include a growing share portion of in-store physical sales and bill payments

With all this in mind, you, as a merchant, should always keep your finger on the pulse and look for the best and the right specialist in digital payments. Consider turning to a reputable payment processor and alternative online lender like First American Merchant. FAM is a BBB-accredited merchant services provider that specializes in the high risk field. Importantly, offers the most secure and cheapest payment processing solutions to help you grow your business.

Digital Payment Processing in China

The digital and artificial intelligence fields are growing at an astonishing pace. The amount of non-cash transactions worldwide isn’t going to stop increasing. The time when online, mobile and digital currency payment systems are “planning” to surpass credit and debit cards as the most preferred options to pay for eCommerce worldwide has come. It’s already here. No Need to wait.

Did you know that Chinese shoppers tend to keep their payment information on their smartphones?  What’s more, they don’t like to stick with a limited number of alternative payment methods. All this provides a basis for higher growth rates of mobile payments.

Today, the highest number of internet users around the globe is found in China. China is becoming the global leader when it comes to digital payment processing, thus leaving behind the U.S. So, it’s crucial to know what steps to take so not to stay behind and just take your business to the next level with success.