China’s digital payments revolution
While America continues to use bank-based magnetic striped cards with chips, China has undergone a retail payment revolution. Leapfrogging the card-based system, two new payment systems have come to dominate person-to-person, retail, and many business transactions. China’s new system is built on digital wallets, QR codes (two-dimensional bar codes), and runs through their own big tech firms: Alipay running through Alibaba (China’s version of Amazon) and WeChat Pay running through Tencent (China’s version of Facebook).
This article written by Aaron Klein and originally published by the Brookings Institute, explores China’s digital payment systems and considers the implications for banking systems in America and other developed economies. http://www.asiascot.com/wp-content/uploads/2020/05/Brookings_china_digital_payments_klein.pdf