Payment Mobile

EVOLUTION OF PAYMENT

Various stages from banking platform, credit card, to online/mobile

January 2014

Executive summary

Nowadays in China, Internet and advanced electric devices have enabled us to accomplish tasks wherever and whenever. Taking the payment for example, people neither need to visit the stores nor make calls to the shop to purchase goods, which can be done in front of your computers, tablet, or smart phones. Furthermore, the payment can be finished easily at home, office, or convenient stores next door rather than going to the banks and lining up for hours.

This report will focus on the evolution of payment that has happened as of now. In addition, the report will also touch the mobile payment topic that has been considered as next “blue ocean” market worldwide.

First stage of the payment history – banks

It all started from the “money transfer”, which action seem to be plain but is the most essential element of payment process even nowadays. There are two types of money transfer involved – Designated-Time Net Settlement (DNS) and Real-time Gross Settlement (RTGS).

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| -------------------------------------------------

Designated-Time Net Settlement

(DNS) | -------------------------------------------------

Real-time Gross Settlement

(RTGS) |

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Target/Operation | -------------------------------------------------

Small ticket transaction, normally serve to individual clients.

Banks aggregate the transactions and do the clearance every 1-2 days | -------------------------------------------------

Big ticket transaction, normally serve to corporates.

Banks process the transaction instantly and fulfill the transfer. |

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Duration | -------------------------------------------------

2-3 days | -------------------------------------------------

Instant (within few hours) |...