e-Estonia: The most advanced digital society in the world

3

October

2019

5/5 (1)

Most of us are familiar with the hassle of submitting our votes on paper when there are elections in our country. Or the pain when we have to explain our GP our previous medical treatments and medicine allergies because there is no central database of medical records. Not to mention the immense amount of paperwork one has to go through to register in the Netherlands if they are not Dutch. But what if I told you there is a country where everything is done electronically? No more voting on paper, one central database of medical records, online ID registration… Estonia, a small European country on the border of Russia, is said to be ‘the most advanced digital society in the world’ (Hammersley, 2017).

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Estonia gained independence from the former Soviet Union in 1991, and instead of following the other former Soviet states on administering everything on paper, they took a brave step and started investing in IT solutions and took the information technology route (e-Estonia, 2019). Estonia is famous for its highly advanced public sector and providing sophisticated public services online, and is performing better than the European Union average on measures of information technology achievement (World Bank, 2014). Since 1997, Estonians can arrange their public affairs online, can submit their tax claims online since 2000, can vote online since 2005 (the first nation in history), can have their health records stored centrally and digitally since 2008 and in 2014, Estonia introduced the e-Residency, which is a transnational digital identity, allowing residents of the EU to receive a digital ID and access Estonia’s public e-services (e-Estonia, 2019). (If you want to know more about what e-Residency means exactly and how to become an e-resident of Estonia, you can read more here: https://www.wired.co.uk/article/estonia-e-resident). For all this, Estonia has been experimenting with blockchain technology since 2008, to ensure data security and to decrease the risk of cyber attacks (e-Estonia, 2019). Since 2012, Blockchain has been used in most of Estonia’s digital public affairs (e-Estonia, 2019).

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A system like this, however, has its issues too. For example, Estonia is fearing a Russian invasion even up to this day, that is why they backed up there servers in Luxembourg, which is highly protected. Also, in 2017, some identity cards had to be blocked temporarily because some physical chips were found to be vulnerable in the e-Estonia card. Other cyber attacks have been prevented with the help of blockchain technology. (Heller, 2017)

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But when are Western nations going to catch up to this digital society? For example, I know from experience that in France, the level of bureaucracy and paperwork is so high, that registration could take months. Furthermore, medical records are being kept on paper by patients themselves, creating a very vulnerable and hectic paper-based system.

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What do you think of the feasibility of implementing such a system in Western nations too? Can we expect something like that any soon? And are there steps in your country already in this direction?

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Bibliography
e-Estonia. (2019). e-Estonia — We have built a digital society and so can you. [online] Available at: https://e-estonia.com/ [Accessed 3 Oct. 2019].
Hammersley, B. (2017). Concerned about Brexit? Why not become an e-resident of Estonia. [online] Wired.co.uk. Available at: https://www.wired.co.uk/article/estonia-e-resident [Accessed 3 Oct. 2019].
Heller, N. (2017). Estonia, the Digital Republic. [online] The New Yorker. Available at: https://www.newyorker.com/magazine/2017/12/18/estonia-the-digital-republic [Accessed 3 Oct. 2019].
World Bank. (2014). e-Estonia: The Making of An Information Age Society. [online] Available at: https://www.worldbank.org/en/events/2014/05/20/e-estonia-the-making-of-an-information-age-society [Accessed 3 Oct. 2019].

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Will China’s mobile payment system be introduced in Europe?

22

September

2019

3.67/5 (3)

Background

While I was studying digital retail in Paris last year, I learnt how problematic it was for Parisian luxury boutiques to serve Chinese customers because a lot of them would like to use Alipay or WeChat, however, in Europe stores normally accept cash or credit card. This is true the other way around too: in China a European customer cannot use their bank cards, they will have to use cash or the abovementioned apps. But what are Alipay and WeChat and is Europe ever going to rely on such apps to pay?

Mobile Payment in China
WeChat and Alipay are two very compact applications which include social media, messaging, ordering services and products, doing business online, and so on (Jao, 2018). What they both have in common is that they are the two of the primary means of paying in China (Chooai, 2018). Essentially, people scan a QR code when they pay, they confirm with their fingerprint or FaceID, and the payment is completed. Besides these, cash is also accepted in China, however, in big cities, more and more online purchases can only be completed with these two apps, so cash is becoming less and less popular (Chooai, 2018). Credit cards are only accepted in expensive, mostly Western places and are mostly used by foreigners (Thechinaguide.com, 2019). Simply put, it feels like China simply skipped the credit card era and went from cash to mobile payment.

Payment in Europe
In Europe, cash is less and less popular, for example Sweden would like to eliminate cash completely in the upcoming years since nowadays mostly tourists and elderly use cash in the Scandinavian country (Henley, 2016). However, a mobile payment is still in its infantry compared to that of China. Although Europeans do use mobile payment, a lot of them still prefer their bank cards and most physical stores actually demand them to use those, while online stores are more willing to take mobile payment (Emarketer.com, 2017). ApplePay is, however, on the rise in Europe, therefore people now can also only use their phones and then their fingerprints/faces to pay, and no need for cash or a bankcard anymore, just like in China (Apple Support, 2019).

Future of mobile payment in Europe
The main difference between China and Europe is that Europeans still heavily rely on bankcards, while Chinese have never actually used them. They have their own method of mobile paying which made the use of bankcards unnecessary in the Eastern country. But is Europe ever going to catch up to this technology? Obviously, the technology is there and is ready to use in the West too, but is it feasible to implement it? Or is ApplePay going to take over and will make the use of bankcards unnecessary here too?

This question is quite complex and has many sides to it. What do you think? What is the future of payment in Europe?

 

Apple Support. (2019). Apple Pay participating banks in Europe and the Middle East. [online] Available at: https://support.apple.com/en-us/HT206637 [Accessed 22 Sep. 2019].

Chooai, R. (2018). An Overview of Popular Online Payment Methods in China. [online] SEO Shifu Blog. Available at: https://blog.chineseseoshifu.com/online-payment-methods-china/ [Accessed 22 Sep. 2019].

Emarketer.com. (2017). Personal Mobile Payments on the Rise in Europe – eMarketer. [online] Available at: https://www.emarketer.com/Article/Personal-Mobile-Payments-on-Rise-Europe/1015592 [Accessed 22 Sep. 2019].

Henley, J. (2016). Sweden leads the race to become cashless society. [online] the Guardian. Available at: https://www.theguardian.com/business/2016/jun/04/sweden-cashless-society-cards-phone-apps-leading-europe [Accessed 22 Sep. 2019].

Jao, N. (2018). WeChat now has over 1 billion active monthly users worldwide · TechNode. [online] TechNode. Available at: https://technode.com/2018/03/05/wechat-1-billion-users/ [Accessed 22 Sep. 2019].

Thechinaguide.com. (2019). Cash or Credit Card? How to Pay for Things in China | The China Guide. [online] Available at: https://www.thechinaguide.com/blog/cash-and-credit-cards [Accessed 22 Sep. 2019].

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