How financial technology is driving Chinese consumer spending
With mobile payments and quick cash loans just a click away, mainland consumers are more willing to spend their money, say analysts
A boom in financial technology in the mainland is boosting consumer spending by making people more willing to part with their money, according to industry experts.
With technology making everything from mobile payments to quick cash loans and wealth management services available at the tap of a smartphone screen, Chinese shopping habits are changing rapidly, they said.
For James Zheng, 30, an IT engineer in Beijing, financial technology has fundamentally altered his approach to buying goods.
“I buy many things from consumer electronics, groceries to daily necessariness online. On average, I spend about 2,000 to 3,000 yuan a month,” he said.
The convenience of mobile payments has made online shopping much easier, while some new financial products such as “Jingdong white stripe” have also encouraged online purchases, Zheng said.
I am actually more generous in my spending because of the convenience of financial products backed by big data and artificial intelligence technology
Jingdong white stripe is a service offered by e-commerce giant JD.com. It provides small amounts of credit to buyers who can enjoy an interest-free period. A similar product, named Huabei, that offers a deferred payment option is also available on Taobao.com and Tmall, the e-commerce platforms of Alibaba Group, which owns the South China Morning Post.
