26 November 2017
Now non-cash payment has become a new wave. It seems to be the mainstream and a new trend. However, the current payment platforms are all run by private enterprises. Moreover, they are controlled by foreign bosses. This poses a potential threat to our national security. There will be a problem if the government’s role is absent from the main financial payment channel.
The development of Alipay certainly has its value, which adapts to the needs of social development. Internet transactions require online payment platforms.
Initially, Alipay only served as a credit guarantee for online transactions. It used to be the temporary prepayment pool before the customer received the goods.
Its role was to meet the requirements of almost all customers across the country and served as all the banks to pay and temporarily deposit payment for goods.
Later, after the fund pool of temporary deposits had financial management function, the funds in the pool can not only be withdrawn at any time, but also bring about the interests of fixed time deposits.
Driven by the interests, people deposit all their working capital into Alipay to obtain certain interests and are able to withdraw their capital at any time. The functions of smart phones are becoming more and more powerful with their popularity. Among the functions are fingerprint recognition, face recognition, QR code recognition, positioning, and high-speed data processing. In addition to supporting online transactions, new functions of Alipay have been developed, namely instant spot transaction, instant payment, and QR payment.
Many people now go out with their mobile phones instead of cash. Technology is developing so fast, Alipay is leading and has been leading the trend of the times. This is of course the value of its existence. Private enterprises are creating wealth for sure. It is right to create wealth. If enterprises do not make money or do not develop, it is just like soldiers do not fight or flee.
In contrast, our banking system seems to be working for Alipay. In fact, it does. Because all traditional banking belongs to bureaucratic system, they are afraid of risks. Although I have heard that some banks are also engaged in mobile payment but they have no methods to promote it. I don’t think this is what a bank can do. But what the Central Bank or UnionPay should perform.
Since mobile payment has become the mainstream of the society, the government cannot be absent, or it is ineffective governance.
1. In the financial sector, people believe in the government-owned institutions but not in private enterprises. The state needs to be responsible for the security of all funds entering and leaving the state-owned payment platforms, while the responsibilities of private enterprises are limited.
2. Moreover, the formation of a payment platform is simple; it’s all about establishing a website, finding some technical staff, and downloading an app. There’s not much technical difficulty involved.
3. The state-owned payment platforms need to provide services to all e-commerce providers, rather than being monopolized by a few companies, which is conducive to fair competition between e-commerce enterprises.