This is the third payment methods. Currently, digital RMB is the new form of payment.
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Nowadays, Alipay and WeChat are rapidly taking over our daily lives by providing unbeatable advantages. Compared to paper money, which can be easily damaged, mobile payments are really convenient: first of all, when we go out, we just need to carry a small cell phone with us, meaning that it's easy to collect and pay for things without carrying around a large amount of cash; secondly, smaller amounts of renminbi will come into contact with many people as they circulate throughout the country which can proliferate bacteria that are harmful to human health; plus the national level is vigorously developing mobile communication technology so even some elderly people use this method of payment.
A third payment method has emerged
There are a couple of mobile payment software's to choose from in China. You can use Tencent or Alipay, but the popular CCTV revealed news last year of a third payment app. Although there was speculation, everyone didn't expect the policy to be put into use so fast.
Digital yuan is a new method of payment that's becoming popular in a few areas, as it has some distinct advantages. When you're shopping and paying for something, there's no need to enter your payment code. You just open the digital RMB platform on the mobile app and then put two phones together to make the payment - it's much faster and less of a hassle than other payment methods like Alipay or WeChat.
Although Alipay, WeChat and digital currency could be mistaken for payment gateway system architectureeach other at first glance, they are all quite different. In short, there is no conflict and competition between the three. They can coexist in harmony.
Last year Shenzhen opened to the outside world and conducted a pilot activity of digital currency. People could purchase 10 million yuan of digital currency red envelopes at local supermarkets and public parks. Recently, Shenzhen Futian District released their public test report card, according to the data from the report it was found that in this period nearly 1.86 million locals completed the reservation. When it comes to transactions, 141,000 were made in total with an overall transaction amount of 1,519,700 yuan. This shows that people are still very optimistic about this new payment method and at least happy enough to accept and use it.
The disadvantages of WeChat and Alipay
Some disadvantages of Alipay and WeChat payment methods for businesses: when withdrawing a certain amount of money, you need to pay a fee. Furthermore, the account will be locked after a certain amount of withdrawals. Thawing the account is also more difficult compared to other payment methods. Finally, whether Alipay or WeChat is safe depends on Alibaba or Tencent's network system being able to resist external hackers' attacks.
The RMB is the first digital currency that lets users pay with their phone, sent over the internet. With the help of blockchain, it's an automated system that doesn't require third-party verification. It also doesn't require communication networks to facilitate transactions or relationships with financial institutions. Finally, it's available in all major currencies, and we've been able to fill up some gaps in the international payment infrastructure.