{"id":374723,"date":"2018-08-24T15:33:19","date_gmt":"2018-08-24T14:33:19","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/how-chinas-mobile-ecosystems-are-making-banks-obsolete\/"},"modified":"2018-08-24T15:33:19","modified_gmt":"2018-08-24T14:33:19","slug":"how-chinas-mobile-ecosystems-are-making-banks-obsolete","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/how-chinas-mobile-ecosystems-are-making-banks-obsolete\/","title":{"rendered":"How China\u2019s Mobile Ecosystems Are Making Banks Obsolete"},"content":{"rendered":"<div>\n<p><em>Giant Chinese tech companies have bypassed credit cards and banks to create their own low-cost digital payment systems.<\/em><\/p>\n<p>The US credit card system siphons off excessive amounts of money from merchants, who must raise their prices to cover this charge. In a typical $100 credit card purchase, only $97.25 goes to the seller. The rest goes to banks and processors. But who can compete with Visa and MasterCard?<\/p>\n<p>It seems China\u2019s new mobile payment ecosystems can. According to a May 2018 article in <em>Bloomberg<\/em> titled \u201c<a href=\"https:\/\/www.bloomberg.com\/graphics\/2018-payment-systems-china-usa\/\">Why China\u2019s Payment Apps Give U.S. Bankers Nightmares<\/a>\u201d:<\/p>\n<blockquote>\n<p>The future of consumer payments may not be designed in New York or London but in China. There, money flows mainly through a pair of digital ecosystems that blend social media, commerce and banking\u2014all run by two of the world\u2019s most valuable companies. That contrasts with the U.S., where numerous firms feast on fees from handling and processing payments. Western bankers and credit-card executives who travel to China keep returning with the same anxiety: Payments can happen cheaply and easily without them.<\/p>\n<\/blockquote>\n<p>The nightmare for the US financial industry is that a major technology company \u2013 whether one from China or a US giant such as Amazon or Facebook \u2013 might replicate the success of the Chinese mobile payment systems, cutting banks out.<\/p>\n<p>According to John Engen, <a href=\"https:\/\/www.americanbanker.com\/news\/why-chinas-mobile-payments-revolution-matters-for-us-bankers\">writing<\/a> in <em>American Banker<\/em> in May 2018, China processed a whopping <em>$12.8 trillion<\/em> in mobile payments in the first ten months of 2017&#8230;.<\/p>\n<\/div>\n<p><a href=\"https:\/\/dissidentvoice.org\/2018\/08\/how-chinas-mobile-ecosystems-are-making-banks-obsolete\/\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Giant Chinese tech companies have bypassed credit cards and banks to create their own low-cost digital payment systems. The US credit card system siphons off excessive amounts of money from merchants, who must raise their prices to cover this charge. In a typical $100 credit card purchase, only $97.25 goes to the seller. The rest [&hellip;]<\/p>\n","protected":false},"author":2525,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-374723","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/374723","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/2525"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=374723"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/374723\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=374723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=374723"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=374723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}