With Apple Pay changing the way retail payments are made, two giant brands are coming together in order to provide head-on competition. The partnership will have Xiaomi provide the physical Mi Band wristband, while Alibaba's AliPay service will handle the transactions.
Rather than requiring a password to make secure payments, this wearable payment system will be linked to the wearer's identity. This is set up through a web-based service and an identity card, making it extremely easy to make payments after the initial setup with a smartphone. Since theft is an issue, the wristband cannot be paired with any other phone until the original owner deactivates the link between the phone and the wristband.
As well as being able to make payments without passwords, another feature that sets this payment system apart is that it doesn't rely on NFC technology. People wearing this smart payment band will have the flexibility to make payments for everything from hotel rooms to movie tickets—imagine the freedom you could have without a wallet weighing you down.
An Alibaba and Xiaomi Partnership Challenges Conventional Retail Payments
1. Wearable Payment Systems - This trend disrupts conventional retail payments by providing a secure and convenient alternative to traditional payment methods.
2. Identity-linked Payments - This trend offers a disruptive innovation opportunity by eliminating the need for passwords and enabling seamless payment experiences based on wearer's identity.
3. Non-nfc Payment Technology - This trend challenges the reliance on NFC technology for payments, opening up opportunities for alternative payment solutions.
1. Retail - The retail industry can harness the disruptive potential of wearable payment systems to enhance customer experiences and streamline transactions.
2. Technology - The technology industry has the opportunity to innovate and develop new payment solutions that leverage identity-based authentication and non-NFC technology.
3. Hospitality and Entertainment - The hospitality and entertainment industries can benefit from implementing wearable payment systems to offer seamless and secure payment experiences for services like hotel bookings and ticket purchases.