New technology simplifies life but Internet security top issue
Print Edition
ON a winter’s evening last month, consumers queued at Shanghai grocery stores and supermarkets to pay bills by swiping their phones in front of bar codes under Alibaba’s mobile payment tool Alipay.
That day, December 12, or “Double 12” as it was dubbed, saw Alibaba offering 2 billion yuan (US$322 million) worth of coupons and discounts for buyers using Alipay.
As 2014 drew to a close, it was obvious how deeply information technology development is changing the way people live. Mobile phones are replacing cards and cash for purchases, and 4G phones are becoming popular. Reflecting this massive sea change was Alibaba Group’s successful initial public offering in New York in September, which raised US$25 billion and set a global IPO record.
The boundary line between service providers and device makers has been breached as cross-sector industries expand, fueled by huge volumes of investment.
In the technology realm, looking back is looking forward. Shanghai Daily explores what happened in 2014 and where it will take us this year.
Paying by smartphones
Shanghai residents topped their counterparts in all other Chinese mainland cities in the use of Alipay on the big coupon day on December 12.
Mobile payment has changed the way people call taxis, pay utility and credit card bills and make money transfers.
Alibaba-invested online taxi service Kuaidi, for example, offers users discounts, starting from 3 yuan, for each trip if they pay with Alipay.
As high as 61 percent of consumers have used cyber channels as payment tools, up 16 percentage points from a year ago, said China UnionPay, the country’s sole bankcard transaction firm.
The mobile payment format will unveil new development engines in 2015, such as Apple’s possible debut of its mobile payment services in China, which will fuel further consumption from iPhone users.
4G is popular and affordable
Fourth-generation phones allow people to view pictures of online shopping or tourism packages, pay bills in seconds, transfer pictures and watch online video clips — all on high-speed 4G networks.
China Mobile, the world’s biggest mobile carrier, had more than 60 million 4G users by the end of 2014. It built 600,000 TD-LTE 4G base stations in 2014 and plans to boost that figure to 1 million this year. The price of 4G dropped by about half in 2014.
This year, China Unicom and China Telecom are expected to get official nationwide FDD-LTE 4G licenses. The new market players will make 4G more affordable and provide wider coverage, thereby attracting more users. The carriers are testing the waters for integrating 4G communications into automobiles this year.
China-brand smartphones shine
What’s the bottom price of a smartphone capable of giving complete mobile Internet services? About US$100, thanks to domestic phone makers offering affordable models with medium and high-quality technology features.
Beijing-based Xiaomi Corp, Huawei Technologies and Lenovo Group moved into the ranks of the top-five global mobile phone makers by the end of the third quarter.
The prices of Xiaomi’s Redmi and Huawei’s Honor models start at about US$100. They feature mainstream standards like 5-inch screens and quad-core processors.
Low budget no longer equates to low quality.
The companies are expanding into the higher end of the market with models like Huawei’s M7, which is seen a viable competitor to Apple and Samsung flagship models.
Domestic brands are expanding into overseas markets with strategic acquisitions, such as Lenovo’s US$2.9 billion takeover of Motorola Mobility.
O2O investment booms in China
O2O, or offline-to-online, has become a buzzword in China. Simply, it means connecting people’s offline demand with online applications, containing payment methods online or through mobile phones.
As part of this trend, Xiaomi invested US$1 billion last year in video websites such as Youku Tudou and iQiyi. Tencent took a 20 percent stake in restaurant review and coupon website Dianping.com. Baidu.com acquired coupon site Nuomi.com, and Alibaba purchased map website AutoNavi.
In 2015, O2O investment will continue, allowing people easier access to sectors such as wedding, tourism and health care. Wearable computing devices are expected to play major roles in the O2O chain.
Internet security issue
The popularity of O2O applications and mobile payment systems has opened windows of opportunity for cyber criminals.
In December, a database leak of 130,000 users from China’s official railway ticket website 12306.cn was revealed, just as the rush to buy Spring Festival tickets began.
Other cyber crimes uncovered in 2014 included user database leaks at online travel website Ctrip.com and retailer JD.com. Bank fraud cases also came to light.
The China Information Security Alliance, founded by China’s top dot-com firm Tencent and regulators, was said to have helped prevent online fraud of up to 265 million yuan last year. It also told telecommunication carriers to block 5,100 phone numbers and 1,390 websites.
The Edward Snowden case caused China to deepen its focus on Internet security. A huge new security-related services market has opened that spans the industry chain of telecom carriers, smartphone vendors, telecom equipment manufacturers and security firms.
Also on the increase are “white hat” hackers, who help companies detect and close system loopholes.
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