How China's Push for Paperless Gives Data Collection a New Meaning
As we become more dependent on our smartphones there is a concern for data privacy as we move towards a cashless society.
According to the New York Times, China has decided to back electronic payment options in favor of paper money and coins. People in major Chinese cities are now using a smartphone to make online transactions, even when they shop in malls or at local street vendors. This isn't related to their infrastructure spending or any major changes in China's current policies but rather, how they want to eliminate the need for cash purchases.
China's Adoption of Paperless Spending Causes an Economic Boom
From a technology innovation standpoint, China's transition toward electronic payments is surprising because they are known for blocking Google, YouTube, and numerous social media sites that allow free speech. The Chinese had to find alternatives by scanning QR codes to connect with their peers via WeChat and upload videos onto Baidu because of the government's censorship efforts. China's huge population would cause cash to go out of style since it's harder to keep track of over $5.5 trillion being spent on consumer goods in their market economy.
WeChat has replaced traditional wallets as it can link up to a bank account. Even ATM cards are no longer used for deposits or withdrawals. Many Chinese internet companies such as Alibaba utilize data collected from digital transactions, thereby easily forming partnerships with other companies by charging them to use their platforms. This suggests a more efficient data collection method to help companies create advertising based on the preferences of their target demographics. From credit systems to paying for insurance, China has found a way to process payments cheaper than credit card companies charge.
The Pros and Cons of Introducing Electronic Payments
One day, China might be remembered as a cashless society because they've become more dependent on smartphones to pay for goods and services. Just a quick QR code scan is all they need to buy things online. It's also been reported that people are able to get instant loans just by asking their friends on WeChat. Technology firms will soon automate commercial spending in multiple industries since it already plays an important role in mainstream media.
One problem resulting from paperless payments is the lack of screening by a central bank before a transfer of money occurs. China's monetary authorities won't be able to keep track of capital flows nor will they know which companies are legit and which ones are money-laundering scams. The push for mobile payments does explain why vendors like Tencent are encouraging people to link their bank accounts to WeChat and Alibaba so they can process payments similar to how PayPal works in America.
Consumer data can be collected from phone apps as people often store their personal information on those accounts. This data helps companies understand how to market their products down to the mobile UI design, SEO metrics, and customer analytics. They are aware that people enter keywords into search engines to find what they want, so they have to figure out how to direct that traffic towards their websites or downloadable apps for Apple and Android phones.
How Digital Exchanges are Useful in E-Commerce Marketing
What does this mean for e-commerce sites looking to improve their SEO marketing strategies? They would have to optimize their content by building apps that are easy to navigate for online shoppers. Niche bloggers hoping to update their sites for mobile payments are facing challenges in running their business from researching relevant keywords to constructing attractive call-to-action front pages. An e-commerce shopping cart must also include flexible payment options for checkout.
As an example, a health and wellness SEO blog could have images of vitamin supplements with keywords embedded into their titles, product descriptions, and sales pages. Health and Wellness marketers can take advantage of the increased access to customer payment data to fine-tune their SEO placement inside blog posts and subscription newsletters. Either way, it helps cut down on market research costs for merchants in the health and wellness niche.