How Fintech has dominated China

In China, fintech companies have become mobile super apps and they have entrenched themselves into every aspect of people’s daily lives, especially the dominant duo Alipay and WeChat pay which have a billion active users each, many of these users organize their daily lives around these apps. If you have one of those apps (or better both) it's essentially like a whole new operating system for your phone. No one cares about iOS or Android, as long as the phone has Alipay or WeChat pay, you’re good to go.

You call an uber to get to work with Alipay, you check daily stock prices with Alipay, you bought your morning coffee with Alipay, you book a travel appointment with Alipay, you buy insurance with Alipay, and when you want to buy a car, you take a loan through Alipay. It’s like Uber, Robinhood, Paypal, and Klarna just merged into one single app.

And the thing is, the rise of fintech in China is very unusual. From the speed of it, the large amounts of scams and Ponzi schemes in it, to the government's stance of harsh regulatory crackdowns one after another.

So, how did China’s fintech companies succeed so quickly and managed to become super apps? How did the rise of fintech in China triggered massive social unrest, leading to a regulatory crackdown, including the famous disappearance of Jack Ma in 2020? And what is the future for China’s fintech companies with a government quite hostile against them?

Music by Epidemic Sound

Stock Footage by Storyblocks

#China #Finance #Doverhill

about economics explained, about Finance and how money works, on China's fintech and its dominance on China, This is an economics/finance video