Design Sprint with AlipayHK Key Stakeholders

 

Design Sprint Day 1

Barriers to adoption of e-wallets

A total of 16 SVF licensees, including e-wallet and prepaid card payment services providers, have come on board since the commencement of the SVF licensing regime. However, only 20% of the respondents surveyed by the Hong Kong Productivity Council in May-June 2018 embraced mobile payment (including e-wallets) as their regular payment option in the past year.5Legend symbol denoting See Hong Kong Productivity Council (2018). The dominance of Octopus cards in the payment market and relatively high penetration rate of credit cards might have held local consumers back from switching to alternative payment systems, which in turn hinders the adoption of e-wallets in Hong Kong.

In Hong Kong, Octopus cards and credit cards have taken root for many years. Local consumers have developed a habit of using Octopus cards for payment of public transport fares and small-value purchases, as well as using credit cards for large-value payments in order to earn reward points. There are currently more than 35 million Octopus cards in circulation, which are used by over 99% of local people aged 15-64. Meanwhile, credit card is the second most preferred forms of payment in Hong Kong, with the number of credit cards in circulation totalling some 20 million or 2.7 cards per person at the end of the first quarter of 2018.

In addition to heavy reliance on Octopus cards and credit cards, there are other barriers to adoption of e-wallets in Hong Kong. These include concerns over privacy protection and payment security and a lack of interoperability between different e-wallet payment platforms.

2018 - Major Competitors in the Hong Kong e-Wallet Market

Conclusion

Based on the current user composition, income distribution, and combined data from surveys and in-app user behavior tracking, we can clearly identify that the core users of AlipayHK are a group of price-sensitive, discount/subsidy-driven users who lack loyalty. They are highly responsive to price changes and prefer using coupons from various platforms to shopping. These users do not have a strong preference for which platform to use or whether to use an e-wallet for payments.

For users who appreciate the multi-scenario convenience and fast payments offered by e-wallets, AlipayHK currently cannot differentiate itself from other competitors in Hong Kong in terms of core payment scenarios. AlipayHK's current business development and related financial capabilities in the local Hong Kong market are not yet mature enough to directly replicate Alipay's user acquisition model from mainland China. This has resulted in limited reach within the core payment scenarios of Hong Kong residents' daily lives, and in the short term, it is difficult to find another payment scenario that can rival the daily commuting scenario（ Octopus Card ）. we decided to give up the strategy of establishing core payment scenarios to acquire users.

 

Design Sprint Day 2-3

Sketch out competing solutions on paper. Work alone and decide together. Turn challenges into opportunities for design with “How Might We”

Aligned with the current user base, which primarily consists of promotion-driven users, we decided to pivot our focus from creating core payment scenarios to developing localized operational activities (From scenario-driven to content-driven). By leveraging local culture to motivate users adopt us, then driving long-term business growth.

 

In our context, Form means the Alipay e-Wallet(Brand identity, visual style, interface design etc.) Behavior includes user’s action, emotion, feeling and perception, in our context, also includes a initial payment need (scenario) led to a particular payment behavior. For quiet long time, our team focus on optimize user’s payment experience through polished UI and crafted payment user flow to outstand us in the market. Lacking of efforts to explore the design impact from content aspect.

In my opinion, content design is more broad and abstract than form and behavior but also play a vital roles in our design world. In our case, my understand about content is the concept of local culture, it’s about storytelling and design narrative. A good storytelling is powerful enough to give the users a reason to adopt us

From now on, my team decided to find this unique story!

Insight From Hong Kong Local's Behavior ——Hong Kong's Affinity for Stamps

After shopping in Hong Kong, receiving change, getting a receipt, and then a long strip of stamps is a familiar scene. Sticking the stamps in a booklet to exchange for household items or limited-edition figures with discounts is something Hong Kong people enjoy.

Hong Kong Street Field Trip Research

Why do Hong Kong people love collecting stamps? Frequent shoppers from Mainland China in Hong Kong might wonder about this. In our perspective, this inefficient and washed discount method is still maintained by Hong Kong retailers.

In fact, collecting stamps is an unique memory for a generation of Hong Kong people. The experience of exchanging stamps for kitchenware or limited-edition cartoon figures goes beyond just obtaining discounts. While similar methods are used by retailers in mainland China, they are not as widespread or deeply ingrained in the culture as in Hong Kong.

There are generally three ways to use stamps for redemption in Hong Kong:

  1. Collect a certain number of stamps to get a free item.

  2. Collect enough stamps to purchase a valuable item at a very discounted price.

  3. Use a few stamps to get a discount on an item if the number of stamps isn't enough for a full redemption.

Even in the era of mobile internet, Hong Kong people still love these stamps. For many, each stamp feels like a companion from their childhood. In the 1980s and 1990s, Japanese companies like Jusco, Japan Home Centre, and Yaohan popularized stamp collecting activities in Hong Kong, which were very well received. Every weekend, Hong Kong people would go to these department stores to enjoy the air conditioning, check out the promotions, and collect stamps and booklets at the service desk after shopping. This habit has been retained, with young girls growing up to become homemakers, making stamp collecting and discount exchanges a unique shopping experience for Hong Kong people.

How Might We

How might we leverage Hong Kong residents' enthusiasm for collecting stamps by providing an electronic stamp collection feature? This feature would offer stamps as rewards for payment behaviors and could be integrated with any offline payment scenario to empower businesses. Additionally, the stamp collection process could extend the task duration, increasing user retention, willingness to use, and usage frequency. It would also enhance merchant participation and onboarding, accelerating the expansion of AlipayHK's payment coverage.

 

Design Sprint Day 4

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Design Sprint Day 5

Process

 

Low-Fidelity Prototype Testing

Goals:

  • Evaluate users' understanding and acceptance of the e-Stamp function.

  • Collect user feedback and suggestions on the design of the function.

  • Identify user confusion and pain points during the usage process.

Preparation：

Create Low-Fidelity Prototype:

  • Low-Fi Prototype: Draw interfaces and flowcharts for the e-Stamp function, including steps for payment, collecting stamps, viewing stamps, and redeeming rewards. Using prototyping tools (Sketch & ProtoPie) to create simple interactive interface prototypes to demonstrate the function flow.

Select Test Users:

  • Identify the target user group and choose representative users to participate in the test.

Testing Steps

Introduce the Function:

  • Briefly introduce the concept and purpose of the e-Stamp function to the users.

  • Explain the purpose and process of the test.

Simulate Usage:

  • Let users operate the prototype, simulating the process of completing payments, collecting stamps, and redeeming rewards.

  • Observe the users' operation process and record their reactions and feedback.

Collect Feedback:

  • Ask users about their understanding and acceptance of the function.

  • Record any confusion and issues users encounter during the usage process.

  • Collect users' suggestions for function design and improvements.

User Interviews

Goals:

  • Gain in-depth understanding of users' attitudes and willingness to use the e-Stamp function.

  • Explore users' behavior and motivations regarding payments and rewards.

  • Collect users' feedback and expectations for the function.

Design Interview Questions:

Behavioral Habits:

Do you frequently use electronic payment tools? In what scenarios do you usually use them?

What are your thoughts on the experience of collecting stamps and redeeming rewards?

Attitudes Toward the Function:

Do you find the e-Stamp function attractive? What types of rewards would motivate you to use this function frequently?

What factors do you value most when using electronic payments?

Expected Outcomes:

If this function is launched, how do you think it will affect your payment habits?

Which payment scenarios do you think are most suitable for using the e-Stamp function?

Record and Analyze:

  • Record users' answers and feedback in detail.

  • Analyze the interview results, summarizing common needs and individual suggestions.

Feedback

  • Understanding and Acceptance: Most users quickly understood the concept of the e-Stamp function and found it appealing. They appreciated the ease of collecting and redeeming stamps. The majority of users found the e-Stamp function attractive and motivating. They expressed interest in rewards such as discounts, free items, and exclusive offers. The simplicity and convenience of collecting stamps digitally were highly appreciated.

  • Usability Issues: Few users encountered difficulties navigating through the digital prototype, indicating a need for clearer instructions and a more intuitive interface.

  • Suggestions: Users suggested having a dedicated area to display and showcase their e-Stamp collections, as well as to visually manage their stamp collection progress. The key visual of the e-Stamp collection can be more aligned with the brand theme and have a digital gallery feel, without too much operational look.

  • Expected Outcomes: Users believed that the e-Stamp function would positively affect their payment habits, encouraging them to use AlipayHK more frequently. They identified retail shopping, dining, and entertainment as the most suitable scenarios for using the digital stamp function.