Month: March 2021

QR Code vs NFC Payment

Ever since contactless payment methods have become prevalent in Hong Kong, the use of QR code payment has consistently outperformed the use of NFC payment in a number of ways. To begin with, QR code payment refers to a contactless payment method that makes use of Quick Response codes (QR codes). These codes is a type of matrix barcodes and can store much more information than NFC tags. As for NFC payment, it makes use of Near Field Communication (NFC) tags and radio-frequency technology, encoded microchips are required to allow the transmission of data between the NFC tags and NFC-enabled devices to complete the NFC payment.

Comparing the two rising contactless payment methods, QR code payment can do a lot more with a lower production cost when compared against NFC payment. On top of processing payments, QR codes can be utilized for generating promotional codes and e-commercial coupon codes, offering more discounts and interactions with customers and enhancing marketing effects to business owners. Unlike NFC payment, QR code payment does not require any encoded microchips or plastic cards. In addition, QR code payment can be processed instantly, unlike NFC payment which involves waiting time for the virtual data to be transmitted to and from the payment terminal. The transaction settlement period of QR code only requires 1 day after the transaction completed. As a result, QR codes can be generated more efficiently with a lower production cost, favouring business transactions.

In the meantime, it is much more convenient to the customers and business owners since QR code payments can be completed at their fingertips with a smartphone regardless of geographic boundaries and without the need to tap a plastic card which contains the microchips onto an NFC-enabled device. With “AlipayHK Merchant Code”, the payment collection is independent to the existing cash registers or point-of-sale (POS) system. Merchants can simply paste the merchant code stickers in the store without any installation and additional space for the machine, helping SMEs to improve their market competitiveness and adopt to transformation at a low cost.

Apart from providing in-store checkouts service, AlipayHK hopes to address the needs of Hong Kong people by extending the benefits and applications of QR Code to different areas, including bill payment, wet markets and public transport. With innovative contactless payment solutions, AlipayHK could help merchants to transform digitally and bring a new consumption experience in different areas, providing a secure, fast and convenient way for transaction, leading the industry to develop rapidly and bringing a win-win situation for all stakeholders.

To join AlipayHK merchant network, please click here.

Five Hottest Digital Payment Trends in 2021

The payment industry is constantly evolving. In recent years, digital payments have quickly emerged to become the latest and hottest payment trends with ever-growing popularity among customers, merchandizers and service providers. Among the countless types of digital payments, there are five payment trends which are taking the lead to drive through development for cost reduction, speed and efficiency. Let’s take a look at the top five digital payment trends in 2021 which are going to revolutionize the world, leading to ground-breaking changes in the digital payment industry.

1. 5G Networks

Numerous mobile carriers have newly launched their 5G networks, which refer to the fifth generation of wireless technology. Since 5G networks support higher data transfer rate, increased efficiency and enhanced connectivity to accommodate smartphones and other devices, retailers using 5G technology can process multiple transactions and transfer an enormous amount of data and information at the same time, whilst opening up more possibilities for business transactions and providing better user experience. Transaction speed of digital payment depends on the stability and speed of network. With the fastest 5G network, the overall digital payment transaction will be enhanced.

2. Cloud Technology

Cloud computing refers to payment systems that involve the acceptance and processing of payments via the internet instead of a tangible device running through physical phone lines. Customers and merchandizers using a cloud payment system can enjoy greater convenience and versatility, regardless of geographical boundaries. On top of standard point-of-sale (POS) payment systems, the addition of a cloud payment system enables users to enjoy greater freedom from the restriction of traditional payment methods.

3. Cards to Codes Payments

Numerous banks have already incorporated credit card services into their mobile apps. By simply showing the QR codes generated by these mobile apps, customers can complete their transactions instantly with their credit cards without displaying the physical cards. Not required to bring and present a tangible credit card, this payment method has made our lives easier.

4. Mobile Payment

Third-party mobile and online payment platforms, including AlipayHK, enable users to settle their payments in-store, online and by money transfer efficiently and conveniently. Owing to the outbreak of the COVID-19 and lockdown restrictions in different cities and countries, digital transformation in the contactless payment industry has been accelerated and the use of mobile payment apps has become more prevalent across the globe.

5. Blockchain

To strengthen payment security, blockchain technology uses encryption to secure the transaction data to protect user’s privacy. Owing to its decentralized nature and keeping data inter-related , the use of blockchain can benefit business transactions through greater traceability and enhanced security. AlipayHK remittance service deploys this technology to enhance transaction security and introduces the first cross-border remittance service to digital wallet with the use of blockchain technology in the world.

In the world of digital payments, the pace of technological progress speeds up exponentially. It is worthwhile to keep an eye on the latest payment trends, so that customers, merchandisers and service providers can stay ahead of the curve and reap the benefits of technological advancement.

New Era for Public Transport: EasyGo in MTR Stations Accelerates the Evolution of HK as a Smart City

The emergence of contactless payment methods has brought new meaning to the transportation sector in smart cities like Hong Kong. Conventionally, it is fairly common for passengers to pay in cash or by a rechargeable stored value smart card to take a bus, ferry, tram or MTR. Nevertheless, as there is an emerging trend in using online and mobile payment platforms like AlipayHK in local retailers, convenient stores, restaurants and other facilities, a great deal of people would like to extend this easy and convenient payment method to different modes public transport in Hong Kong, covering buses, the MTR and more.

EasyGo, which is a QR code payment solution developed by AlipayHK for Hong Kong public transport, enables transit fare payment processes to be completed within as fast as 0.3 seconds. Furthermore, EasyGo is the first of its kind to adopt both dual offline solution (both merchant and customer side) and a Travel-then-Pay scheme. Hence, passengers can pay with their electronic wallets in their mobile phones even when the internet network is sometimes weak or unstable, or when the balance is insufficient.

With EasyGo, it is anticipated that QR code payment solutions will be introduced more widely into Hong Kong public transportation, so that there will be a greater variety of fast and convenient payment options for the mass public, fulfilling people’s modern lifestyle in the smart city. Local transportation is a crucial part of people’s daily lives; meanwhile, efficiency is a deep-rooted core value among Hong Kong people. Therefore, it is definitely a wonderful news to get more traffic scenes supported by online and mobile payment platforms such as EasyGo by AlipayHK.

As a matter of fact, the MTR system has already allowed commuters to pay by scanning QR codes. It is believed that the usage of small coins and banknotes will be fading away, and handing over cash will be quite nostalgic. On the other hand, taking public transport with QR code payment solutions will be full of fun and surprises. Something as simple as paying fares can point out significant differences in our daily lives, since using online and mobile payment platforms does not only speed up the transit payment process, but it also enables passengers to interact with the public transit company during their journeys, enhancing their travel experience. With EasyGo, the travel experience of the passengers can be taken a step forward. For instance, selected passengers may enjoy complimentary rides on special occasions upon meeting specific requirements, or they may settle the transit fare payments wherever and whenever they prefer. By simplifying the transit payment process and making it easier for passengers to interact with the public transit companies, service providers like bus companies and the MTR, and their strategic partners can also benefit by increasing conversions and turning passengers into loyal brand advocates, introducing a win-win situation for all parties. Being efficient and convenient, EasyGo is deemed to bring pleasant and innovative travel experience to passengers in this smart city, and will certainly become one of the most prominent future trends in the public transportation sector in Hong Kong.