China is the world’s largest payment card market in terms of transaction value, accounting for US$13.3tn in 2017. This is followed by the US, the UK (US$1.1tn), Germany, and France. Cash, however, remains a popular payment instrument among Chinese consumers, especially in rural areas, accounting for 63% of the total payment transaction volume in 2017. One of the primary reasons for the dominance of cash is a consumer preference to keep track of their day-to-day spending.
High penetration of smartphones and the long history of contactless payments have created a unique opportunity for mobile proximity payments in China. Chinese consumers are accustomed to using mobile phones for payments. In an environment in which e-commerce giants and smartphone manufacturers have all launched NFC mobile payment solutions, mobile phone-based contactless payments are likely to prevail.
China is the largest e-commerce market in the world. In terms of transaction value, it grew at a CAGR of 31%. Domestic payment solutions Alipay and Tenpay collectively account for nearly half of the total e-commerce transaction value. International payment solutions are also strengthening their presence. PayPal, operating in China since 2005, has a market share of 10%. Other solutions such as Masterpass and Visa Checkout also have a presence in the market.
The report 'Payments in China 2017: What Consumers Want', examines the consumer payments market in China, considering payment cards, online payments, P2P payments, and newer payment technologies such as mobile wallets and contactless.
In particular, this report provides the following -
- Analyzes consumer attitudes to financial services by lifestage.
- Analyzes the major payment card types in terms of both card holding and usage.
- Identifies the major competitors in card issuing and how their position in the market has changed over the last five years.
- Considers consumer attitudes towards P2P tools, mobile payment tools, and contactless cards, and how companies in China are deploying these tools to meet customer needs.
- Explores the online payment market in China by merchant type and payment tool, as well as providing a five-year forecast for the development of the market.
- Following a World Trade Organization ruling, the Chinese government opened up its payment card market to foreign companies. Consequently, they are permitted to set up their own processing centers from June 1, 2015. In June 2016, however, the central bank laid down new rules enabling foreign competitors to begin operations in the market.
- According to the National Development and Reform Commission and the central bank, merchant service charges for debit cards are capped at 0.35% and at 0.45% for credit cards.
- In June 2015, the Chinese government permitted 100% foreign ownership of e-commerce companies, which were previously accessible only to companies within free trade zones.
- Understand the key facts and figures in the consumer payments market in China.
- Learn what trends drive consumer behavior at the macro level and plan your strategy accordingly.
- Find out what products the major competitors are launching in the market.
- Discover consumer sentiments towards various payment tools in the Chinese market and use this knowledge to inform product design.
Payments Infrastructure & Regulation
- China Construction Bank
- Agricultural Bank of China
- Industrial & Commercial Bank of China
- Bank of China
- Postal Savings Bank of China
- China Merchants Bank
- Bank of Communications
- People’s Bank of China
- China UnionPay