A Study Of The Application And Strategy Of China Mobile Payment

Mobile payment, as one of the key products in phone data services by the application ofthe third generation of mobile telecommunications technology (3G), aims to provide paymentservices via a mobile device, such as phone banking, top-up, paying bills, online shoppingand so on. It demonstrates the followings outstanding characteristics: excellent customerexperience, high brand engagement, wide availability and high effectiveness. Additionally, itis able to deal with some traditional payment problems and improve the efficiency of thetraditional business process. Therefore, mobile payment is very potential and promising. Asthe advance and innovation in communication technology, mobile payment has been moreand more popular and wildly-used all around the world.The telecom operators, financial institutions, the third party payment providers areconfident of the mobile payment market. They proposed or adapted their strategies toincrease the market shares. However, its development was limited by lack of technicalstandards, traditional consumption behaviours, security problems, etc. Facing with hugebusiness opportunities and fierce market competition, as well as the problems of industrialdevelopment, it has become a big challenge for China Mobile (China Mobile Ltd.) togenerate suitable and competitive strategies and implement them into actions to maintain itscurrent market position as the market leader.This report clarified the fundamental and technological knowledge of mobile paymentthrough its definition, category and business scope and analysed the current situation anddevelopment of mobile payment market nationally and globally. It also analysed ChinaMobile’s mobile payment through its three value-added methods that are phone wallet, banktransfer and credit cards or debit cards. Furthermore, this report evaluated mobile payment’sthree essential business elements, which included consumption behaviours, industrialcharacteristics and business operating model. Based on the analyse and evaluation of mobilepayment and my working experience, the recommendations on how to development themobile payment was proposed, which included promotion strategies, industrial chainstrategies and business modelling strategies. Additionally, the examples of the Guangzhoumobile co-branded credit card cooperation and mobile ticketing in the World Expo based on NFC technology demonstrated one useful and practical business model of the cooperationbetween bank and China Mobile and analysed how NFC was applied into mobile payment.They also showed the advantages and future possibilities in mobile payment。...