The analysis of Mobile payment

The analysis of Mobile payment

Group members:

DAI Zhuo

HUANG Lei

LO Pui Ching

SU Tong

ZHANG Xiaoyi

ZHU ShimanThe analysis of Mobile payment

Market structure: Oligopoly

Main sellers: Alipay, WeChat payment, Apple pay

• The services are differentiated because the complexity of the functions varies a lot. Alipay has the most complicated functions while Apple pay has the simplest functions.
• Some of the functions of WeChat and Alipay are restricted by regions.

Five characteristics

• Concentration of buyers and sellers

High concentration of buyers with Alipay and WeChat dominating the market.

• Product Differentiation

Alipay: Mainly focusing on online shopping (Taobao authorized payment), personal banking products and financial services

WeChat payment: it is more socialized, the distinguish function is the red packet

Apple Pay: Purchase in Apple Store, shopping: (e.g: supermarket/convenient store)

• Barriers to entry for new competitors

           High

State regulation and license in relation to financial system

Good relationship with bank

Using pattern

• Cost structures

fixed cost: bank charges for transfer
variable cost: operation expense

• Vertical integration

Alipay shows the highest extent of vertical integration with packets of financial services, social services and so on.

Geographics:

• Alipay & WeChat pay: Greater China market mainly
• Apple Pay: HK & China