The Role Of The Chinese Government On Development Of Mobile Payments

In the financial sector,remarkable changes have been observed thanks to technological developments.Mobile payment platforms,which are the most notable example of these changes,have become an indispensable part of daily life in China,and 83% of total payments have been made through these platforms.The current "not follow the path,show the way" position of China’s mobile payment platforms raises many questions about how China has been so successful.So,many studies in the literature examine the success in mobile payments.Accordingly,sociological factors,the company’s decisions,and the widespread use of the internet are among the reasons for this success.However,although the leading Chinese mobile payment platforms,AliPay and WeChat Pay,which have 94% of market share together,belong to private companies,the Chinese government’s role in this success is an undeniable fact.With this perspective,the thesis examines the government’s role in this success and how the government has taken a sector to the top of the world through its regulations,policies,and tools,and the reasons for promoting.To analyze the role of the Chinese government in this success,first of all,the role of the government in the mobile payments sector as a supervisor,promoter and coordinator,and the government policies related to this sector are discussed.Besides,given the importance of mobile payments in the economy,in order to indicate the main reasons why the Chinese government supports mobile payments are analyzed,such as increasing consumption,providing financial inclusion,supporting rural development,and contributing to other objectives of the government.Consequently,this study reveals that a supporting government is one of the key components in the success of mobile payments in China.