The growth of mobile payments like Alipay, WeChat Pay in China, and Paypal in America

Abstract

With the high development of technology, people start taking mobile payments as their first payment choice. This study investigates why people stop using cash but only use different mobile payments, whether this social development trend would have a significant impact on the banking industry, and whether governments need to take some measures to support traditional payments or make some new policies to regulate m-payment platforms. Using multiple linear regression analysis can test the correlation between banks and mobile payments. The results of this study are as followings: (1) using mobile payments is the trend of modern living, especially in China; (2) mobile payments have a significant impact on private banks’ card business; (3) mobile payments do not have a significant impact on state-owned banks’ card business; (4) the trend of using mobile payments may affect bank card intermediary business of private commercial banks; (5) mobile payments have no threat to state-owned banks but do affect the of business of some private commercial banks.