Find out how China’s new digital currency works and how it differs from other third-party e-payment apps.
China’s Digital Yuan, otherwise known as electronic Chinese Yuan (e-CNY) or Digital Currency Electronic Payment (DC/EP), is a blockchain-based digital currency launched by the People’s Bank of China. Its value is equivalent to RMB bills and coins.Source: Blockchain.newsSince the end of 2019, e-CNY has been piloting across cities like Beijing, Shanghai, and the 2022 Winter Olympics. Interested users of the e-CNY can register, and through a lottery, free online wallets containing 200 digital yuan (US$31.3) will be distributed to the winners. The winners will then be eligible to download and use the “e-CNY” mobile application (app) and join as a participant of the trial programme.Source: Suzhou BendibaoAs the first digital currency launched by the Chinese government, e-CNY has attracted widespread attention both at home and abroad. While the government focuses more on the macroeconomic impact of the digital currency, ordinary citizens care more about its practicality. Today we will explore the e-CNY app to see how it works and consider how it might affect our daily lives.
Special note: as only the selected personnel can download and use this app, the following pictures are all taken from the internet.
How to use the e-CNY
1. Registration
Winners can download the e-CNY app through the official links, and iPhone users can use the given exchange code and download it through App Store. Upon successful installation, enter your phone number and name to complete the registration.
2. Deposit
Select a bank to create a sub-wallet. The available choices include China’s six major state-owned banks and Ali’s MYbank. Access to Tencent’s Webank is in progress. User can create multiple sub-wallets and top up e-CNY through the corresponding bank account.
3. E-CNY for physical payments
E-CNY is accepted as a payment method in most shopping malls, supermarkets, convenience stores, restaurants, and food markets in pilot cities. Merchants that accept this form of payment will have a label to show that e-CNY payments are available at the checkout counter.
Source: ReutersThere are three ways to make payments physically. Users can either: 1) Scan the merchant’s QR code 2) Show the user’s payment code, and the merchant can scan the QR code on the screen, or
3) Through the app’s “touch” feature, which allows two phones with the e-CNY app to transfer money by making physical contact or by touching the sensor provided by the merchant.Source: Baidu.com4. E-CNY for online payments
At present, e-CNY is integrated into Alipay and Jingdong, two of China’s most popular mobile apps. The six major banks also have their affiliated mobile apps such as Meituan, Bilibili and SF Express. Users can click “More” in the upper right corner and then select a sub-wallet to see other mobile applications that support the use of e-CNY. Upon turning on the access to an app, the payment option of “e-CNY” will be displayed in the chosen app.
Image by Suzhou BendibaoFor example, if a user turns on access to the Jingdong app, he or she can choose to pay in “e-CNY” when purchasing goods on Jingdong.Source: Suzhou BendibaoHow is e-CNY different from third-party payment apps?
People who are used to e-payment tools may find this just like any other typical third-party payment. Is it just a government initiative to monitor the capital flow of ordinary citizens? Or is it an attempt to grab a share in the online payment market? These are some questions raised by the Chinese citizens. However, the e-CNY remains quite different from third-party payment apps. Simply put, third-party e-payment apps such as Alipay, WeChat, and PayPal, are e-wallets, while e-CNY is a currency. We shall dive into the five characteristics of e-CNY in detail.
1.National legal tender
E-CNY is China’s legal currency issued by the People’s Bank of China. Therefore, if e-CNY is implemented on a national scale, Chinese citizens have no rights to object. In contrast, third-party e-payment software does not have similar legal authority.
2.Increased anonymity
Due to strict control, Alipay and WeChat both require real-name authentication, with some functions that even require users to bind a bank account. For example, the “red packet” function in the WeChat group can only be accessed after binding the account to a bank card, regardless of the payment amount. On the other hand, e-CNY only requires the user’s mobile phone number and name for registration. Real-name authentication is not required for amounts under RMB 2,000 (US$312.5). Of course, as the amount increases, more personal information is necessary as this linked to the country’s crackdown on money laundering and tax evasion.3.Available in Wi-Fi dead zones
Two mobile phones equipped with the e-CNY app can transfer money through the phones’ physical contact without needing any Wi-Fi signal. In addition, for merchants that have opened the “touch” function, users can make payments by touching the relevant sensors with their smartphones.
4.No need for a binding bank account
Although e-CNY currently requires users to deposit through a bank account, its existence and functionality should be independent of any bank. Third-party e-payment apps such as Alipay are different because they must access a bank card to function.
5.No fees and interest
A handling fee of about 0.1% is charged for cash withdrawal from third-party apps to bank accounts. Although some users enjoy no handling fee up to a fixed amount, this does not apply to everyone, and it makes third-party payment less attractive. To attract users, third-party apps usually will launch many financial products. Users can also get some interests if they deposit their money in those apps. E-CNY is different because it has no interest and no handling fee. It is purely a form of digital currency.Effects of e-CNY in daily life
In short, e-CNY is the digitization of paper money, and its current focus is on facilitating day-to-day payments in the retail sector.
As the digital currency is still in its infancy phase, e-CNY and paper money are expected to coexist for a long time. For ordinary citizens, e-CNY adds to the plethora of payment options in China. Once implemented on a national scale, users no longer have to worry that merchants do not accept such a payment method or that digital payment does not go through due to Wi-Fi signal issues.
Short-term visitors to China will no longer need to exchange currency. E-payments can be made through e-CNY without real-name authentication, unlike other local payment apps that require a mainland ID card and bank account to use the app.
Chinese citizens are generally used to the convenience of e-payments. Common services such as bike-sharing and unmanned stores only accept digital payment methods. As e-payments are relatively common in China, the integration of e-CNY should not be difficult.
Explore the Meituan Homestay app features, a go-to platform for young travellers seeking a personalized accommodation experience. When it comes to "homestay", Airbnb and Tujia should come to mind. Meituan Homestay, which joined in 2017, has been quick to seize the top three spots in homestay platforms. In 2020, its order volume ranked first in China. Are there more reasons for its success other than its strong brand and the vast flow generated by Meituan reviews? Today, we will understand this product by analyzing its strengths and weaknesses from a user's perspective. Target users According to Yunzhanggui’s “2020 Homestay Industry Data Report”, the users of homestay are generally young, with 70% of users below 35 years old. This is why Meituan Homestay aims at young people pursuing individuality and launched many marketing strategies targeting student users.
Product architecture The product architecture will be based on Meituan Homestay (V5.2.1).
Product experience 1. Searching and browsing houses The home page is clean with a straightforward search function. Search methods can be divided into the following categories:
In the search bar, search directly by selecting location, check-in time and landmarks.
Tenants with special requirements such as cooking can input search with corresponding filters.
Tenants who want to stay in famous landmarks can search through the "popular places to stay" section.
Tenants who wish to reserve famous homestays can gain information from the "Hot Search List", "Super IN celebrity", and "High Score Experience" in the "Recommendation Zone".
Tenants who have no special requirement can view the “guess you like” section to get inspirations.
The search result page is arranged in a neat column. The individual labels on top can filter specific features of the house base on your requirements. Labels are also shown on each listing, making it more convenient for you to choose. Prices and discounts are indicated in bold and red. There are also taglines such as "limited time offer" to promote reservation. 2. Viewing details The “housing detail” page shows the pictures, price, brief introduction, service facilities, landlord introduction, evaluation, reservation notice of the house, and recommendations of similar places. The photo album at the top has pictures introducing different parts of the house. This allows users to browse the house holistically. Apart from the information above, the page also includes nearby public transportation, scenic spots and food choices, making it convenient for the tenants to plan their trip.
3. Reservation procedure Users can place the order once the choice is confirmed. Tenants can check or revise the time, the number of tenants, and tenant information on the final order page and pay upon submitting. As the landlords instruct the reservation rules, there is no standardized procedure. Consumers risk no refund or partial refund upon cancelling a reservation, depending on the landlord's written rules. If the rules are obscure, disputes may arise.
4. Other functions The discovery page of Meituan Homestay recommends houses through articles. This page consists of three types of articles: popular written articles, reviews by celebrities and recommended homestays. Apart from internal content creation, Meituan Homestay also pays users for review articles. Users whose articles are adopted can enjoy discounts on the platform. Product Operation and promotion 1.Discount and Special offer Discounts and special offer can be divided into three types: discount for a special user group, general discount, and limited time offer. Discounts for a special user group are mainly for student users. Upon successful verification, student users will receive discount and cashback coupons. The Student verification icon is shown in every interface to stimulate users to verify their identity before purchase. General discounts are shown as "Tonight's Special" and "New House Discount" to attract users and promote sales, while limited time offer happens during particular days or events such as Valentine's Day and Christmas, strategically promoting houses that match the occasion. 2.Self-propagation and publicity Meituan Homestay's new user invitation plan and bargain discount by forwarding posts to friends help grow the user platform through self-propagation. Besides, the platform also promotes through Weibo, short video platforms, Wechat public account and other media platforms, attracting users on a large scale. Since 2019, Meituan Homestay has cooperated with Modern Sky Co. Ltd., Taihe Rye Music Co. Ltd., and entities to host music festivals. It has collaborated with VUE to host the “Unbridled playing, unbridled recording” vlog competition. In addition, the platform works with schools to provide experiential learning and working experience through opportunities like “Superstar Evolution Camp” to build employer branding and attract future talent. 3.PUSH Advertisements Meituan Homestay utilizes PUSH advertisements daily to remind users of the ongoing discount activities and coupon offerings. Conclusion and suggestions 1.Highlights Detailed labelling: The biggest highlight of Meituan Homestay is its detailed labels and referral traffic. On the home page, there are 15 featured labels, and labels are set in every section. This makes it very convenient for users to filter according to their search requirements. In addition, the platform has over ten hotlists based on diverse categories, which allow users to discover their popular choices efficiently. Discounts and offers: As Meituan Homestay’s target users belong to a younger generation, they are more sensitive to price. This is why the platform focuses on promoting discounted items to attract purchase decisions. Offers and discounts are always bolded in red to increase visibility. User-friendly design: The “scroll back to top” button in the “favourites” page, classification of pictures according to the location of the house and display of estimated travel time by different modes of transportation are all examples that make this platform a user-centric one. 2.Weaknesses Design: The homepage uses too many colours. The banner design is also unreasonable as the content repeats what is shown in the bar. The contents of many elements on the home page overlap, which makes the overall experience less pleasant. Functionality: Many interfaces lack the “scroll back to top” button, while the messages interface lacks the one-click "mark all as read" function. The “favourites” page also lacks functionality. It cannot sort the listings based on filters and other rankings. Personal home page: The profile page is overly simplified and poorly designed. "My orders" are not classified according to the order status, making the list challenging to navigate. The “itinerary” and “review” functions are not interactive and therefore deemed as unusable. 3.Suggestions
Here are some suggestions based on what we have discussed so far: Improve the page design and the functions of some components to avoid overlapping.
Maintain high standards for the quality of houses and the qualifications of landlords. Enhance customer service and optimize after-sales services.
Add functions such as sorting and classification on the “favourites” page. A “share” button is helpful to make the page more interactive.
In the “view house details” page, link the recommendations to eat, stay, travel and play with other Meituan APPs. This forms a closed-loop ecosystem which helps to build Meituan’s growth.
Allow reviews for landlords and list the reviews on their homepage.
Enable reviews to be sorted by time, critical comments, only reviews with pictures, and others. Interactive functions such as “like” and “reply” will allow tenants to communicate and perceive the reviews as authentic.
Short videos can be included on the discovery page. At the same time, User Generated Content (UGC) created by tenants or Key Opinion Leaders (KOL) can help to enrich the community atmosphere.
