Macau | Banking on a cashless society - Macau Business

Macau (MNA) – In accordance with the decision to build up a Smart City, the Macau SAR Government entered into an iconic agreement with AliGroup in 2017. In the October edition of Macau Business Magazine, Tony Lai wrotes that part of this improvement brought mobile payment footprints to Macau. WeChat Pay, AliPay and ApplePay are […]

Macau (MNA) – In accordance with the decision to build up a Smart City, the Macau SAR Government entered into an iconic agreement with AliGroup in 2017. In the October edition of Macau Business Magazine, Tony Lai wrotes that part of this improvement brought mobile payment footprints to Macau.

WeChat Pay, AliPay and ApplePay are dominant parts of digital payment markets nowadays. However, applying to the local small and medium sized enterprises (SMEs), this new payment option has still has room to develop.

The advantage of using e-commerce payments is that anyone can become a merchant since people do not need hardware such as chip readers. Cashless payment is not a novelty worldwide.

Despite being a newcomer to the mobile payment business, WeChat Pay has accrued 600 million users as of 2017. However, Alipay has a bigger payment volume of US$1.7 trillion when compared to Wechat Pay’s US$1.2 trillion in the same year.

Despite the presence of WeChat and Alipay in Macau, citizens still cannot use these e-wallets to settle payments at local retailers due to Mainland’s currency control.

To resolve this problem, the two giants have launched different payment method versions for consumers: the local store value card provider, Macau Pass, partnered with Alipay to launch its mobile payment service MPay in 2016, while UePay, another local third-party service provider, has collaborated with Wechat Pay.

In order to enhance the e-market trend, Legislator Ho Ion San also recommendeded that the government could encourage local financial institutions to offer more advanced and diversified e-payment services to enrich the consumption experience for both residents and tourists.

Read more in Macau Business’ s October edition.

By Tina Chao

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