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in recent years, governments and platforms have been promoting digital rmb. what is this new thing? how is it different from previous behaviors in terms of usage and scenarios? in this article, the author gives his own thoughts, hoping to help everyone.

digital rmb is an emerging payment tool in recent years. with the increasing number of pilot cities, it has gradually entered the public eye. how should we view the differences and connections between third-party payment and digital currency payment, and what will be the enabling scenarios of digital currency in the future? here, i give some relevant thoughts.

1. digital rmb 1. description

digital rmb is a legal tender in digital form issued by the people's bank of china. it is operated by designated operating institutions and is based on a broad account system. it supports loose coupling with bank accounts and is equivalent to physical rmb. it has value characteristics and legal tender[1]. unlike the decentralized virtual currencies that were popular in the early years, digital rmb is a completely centralized electronic currency issued by the central bank. it has now been deployed in various pilot cities to allow users to use it online and offline simultaneously.

i have also asked users around me, under what circumstances would you choose to use digital rmb for payment, and the answers i got were mostly that if the payment experience of digital rmb is the same as other third-party payment methods, plus there are competitive interest points, they would consider using it. so let's take a look at the current user usage process of digital rmb on major online platforms.

2. c-end usage process

a.merchant platform

jd.com:

meituan:

b. payment platform

wechat pay:

alipay payment:

it can be seen from the existing digital rmb user usage scenarios that most of the payment behaviors are the same as other third-party payment tools. after purchasing goods, users can click on the digital rmb payment entrance and select the corresponding digital rmb bank wallet to make payments. however, the premise for users to see the digital rmb entrance is that they need to open any bank wallet in the digital rmb app first, and then open the "wallet quick payment" of the merchant or payment platform they want to use.

in general, the threshold for a new user to use digital rmb is relatively high, and a certain amount of user education is required in the early stage. however, in the current situation where other mature payment tools are no longer marketing or have few marketing interest points, the digital rmb with relatively high marketing interest points still has certain competitiveness. this also triggered various parties to think about the differences and connections between digital rmb and other third-party payment tools with m1 attributes.

3. contact

in fact, the author believes that the digital rmb, as a payment tool positioned at m0, should not be in a competitive relationship with third-party payment but rather a complementary relationship.

just as users can recharge the balance of third-party payment wallets such as wechat and alipay by binding their bank cards, users can also use digital rmb wallets to recharge the balance of third-party payment wallets.

therefore, the positioning of digital rmb as m0 has always been that it should be an online supplement to rmb, and it should not compete with third-party payment tools, but should supplement users' current payment methods. it can be compared to users paying with online merchants through direct rmb payment, bank card pos machine, wechat, alipay scanning qr code payment.

simply put this transaction process online, users can make payments online by binding cards, wechat, or alipay, or they can pay directly using digital rmb.

so in what scenarios would it be better for users to use digital rmb than other third-party payment tools?

this is actually about exploring the characteristics of the digital rmb and combining it with scenarios to realize its unique core competitiveness.

3. concept of digital rmb scenarios 1. scenario

as an emerging payment tool, the digital rmb can be integrated into different scenarios within the scope of compliance, just like other third-party payment tools.

in addition, the author believes that we can be more inclined to apply the advantages of digital rmb compared to other third-party payment tools, focus on the payment pain points of users and merchants that cannot be solved by existing third-party payment tools, and solve the actual payment problems of users and merchants.

for example, the digital rmb app launched the yuan guanjia product, which fully utilizes the traceability of the digital rmb and combines it with smart contracts to realize the targeted use of users' pre-charged funds, and pre-deposit unused funds in operating institutions, to avoid the chaos of merchants illegally misappropriating users' prepaid funds and not refunding users' unused funds when they expire. it also uses the offline feature of the digital rmb m0 to innovatively launch offline payment products such as "hard wallets", which improves users' mobile payment experience in remote areas and areas with weak signals, and realizes "offline payment";

another example is the use of the digital rmb's features of "point-to-point payment" and "payment is settlement" to expand overseas markets. from the b-side, while ensuring the security of trade funds, it can effectively avoid exchange rate risks caused by actual payment and settlement time differences.

as far as the c-end is concerned, the internationalization of china's digital rmb in the future will also facilitate the payment behavior of users at home and abroad. perhaps in the future, users will no longer have to exchange foreign currencies through offline banks, but can directly complete foreign currency exchanges in digital currency alliance countries through the digital rmb app.

2. empowerment

when tool products are used merely as tools, business restrictions are inevitable.

as a payment tool, it is understandable that the main function of the digital rmb is still payment, but if the digital rmb can be given some other new additional functions, it may be able to further expand the user group of the digital rmb.

for example, by taking advantage of the dual offline feature of the digital rmb, we can cooperate with popular tourist attractions and popular ips to launch joint "hard wallets". users can use digital rmb for offline payments while also having extremely high collection value. we can also take advantage of the programmability of the digital rmb and combine it with ai, vr and other technologies to realize point-to-point payments in the virtual world.

iv. conclusion

with the continuous improvement of china's mobile payment system in recent years, online and offline payments for users have become increasingly convenient and fast.

the payment industry seems to have gradually reached its current development ceiling. so, will it be a new form of payment tool or an innovative technology that will break the ceiling of the payment industry's development in the future?

no matter which side has the impact, when the industry breaks through the ceiling and reaches another level of development, the payment industry will be worth looking forward to.

appendix

[1] white paper on the development progress of china’s digital rmb, digital rmb research and development working group of the people’s bank of china, july 2021

this article was originally published by @鱼仔525 on everyone is a product manager. reprinting is prohibited without the author's permission

the title image is from unsplash, based on the cc0 agreement

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