The Chinese market for mobile payment offers not only market opportunities for solution providers intending to operate within the domestic market but also learning points for global mobile payment solution providers. China is a unique case study that can showcase to the world that cashless societies are becoming increasingly possible. Already, 40% of Chinese users carry less than RMB¥100 (US$15) in cash and mobile payment has become common among Chinese citizens.
The lack of history of credit card use and wide adoption of e-Commerce has facilitated the quick expansion of mobile payments in China. Alibaba, through its dominance in e-Commerce, and Tencent, through its mobile social media and messaging platforms, WeChat and QQ, connect mass market audiences and lead the mobile payment market with their respective e-Wallet products, Alipay and WeChat Pay. They started out addressing the lack of infrastructure and evolved by offering relevant use cases and viable business models.
The Chinese Government is a strong promoter of the IT industry. Its support in releasing licenses to 250 third-party payment providers has ensured the fast adoption of mobile payments services in the country. Easy, fast, efficient, and secure mobile payment solutions have increased the uptake of mobile payments in China. However, despite current progress, there are still underserved pockets such as the rural market.
This study analyzes mobile payment services in China. The time frame covered is 2017 to 2022, and the forecast period is from 2018 to 2022.
Companies mentioned in this study include, but are not limited to, 1 wallet, Alibaba Sesame Credits, Alipay, Baidu wallet, Baihang Credit Scoring, Inspiry Technology, Meituan wallet, Tencent Credit, UMF, Union Pay, WeChat, Xiaomi wallet, and Yiqianbao.
Key Issues Addressed
- What is the scope of mobile payment services in China? What are the capabilities being offered via mobiles?
- Who are the key market players and what are their service offerings?
- What is the revenue upside and how can payment capabilities in apps improve the efficiency of business processes and reduce manpower requirements?
- What are the risks of implementing a mobile payment service? What are the updates on the governing local regulations and standards?
- Why are global, standard, and inter-operable digital payment solutions needed to expand the mobile payment market and facilitate a cashless society?
1. Executive Summary
- Key Findings
2. Market Overview - Total Mobile Payments Services in China
- Market Definitions
- Key Questions this Report will Answer
- Market Overview
3. Forecast and Market Trends - Total Mobile Payments Services
- Active Mobile Payment Customers and Transaction Value Forecast
- Active Mobile Payment Customers and Transaction Value Forecast Discussion
4. Country Analysis
- Payment Methods in 2017
- China - Electronic Payment in China in 2017
- Cashless Society
- Establishment of the NUCC
- The Impact of the NUCC on Alipay and WeChat Pay
- Credit Scoring System in China
- Alibaba Sesame Credit and Tencent Credit
- PEST Analysis of Third-party Payment Systems
- Third-party Payment Methods
- Quick Payment versus QR Code Payment
- Traditional POS versus Smart POS
- China - Alipay
- Alipay’s Footprint in Southeast Asia
- Business Model of Alipay
- Revenue Model of Alipay
- Business Model of WeChat (Excluding WeChat Pay)
- Revenue Model of WeChat
- Business Model of WeChat Pay
- SWOT Analysis - Alipay versus WeChat Pay
- Baidu Wallet
- Acceptance Points of Mobile Payment
- Cross-border Payment
- Cross-border eCommerce
- Cross-border Payment in Travel and Education
- Addressing the Elderly Market
- Market Analysis
5. A Global Solution for Mobile Payments
- “Going Cashless” versus “Going Less Cash”
- Local versus Global
- Mobile Payment Solution of Today
- What Mobile Payments in the Future Needs to Be
- Sustained Use of the Credit Card Model is Expected
- Complemented by Alternate Global Solutions for eMoney
6. Growth Opportunities and Companies to Action
- Growth Opportunity
- Strategic Imperatives for Success and Growth
7. The Last Word
- Conclusions and Recommendations
- The Last Word - 3 Big Predictions
- Legal Disclaimer
- List of Exhibits
- 1 wallet
- Alibaba Sesame Credits
- Baidu Wallet
- Baihang Credit Scoring
- Inspiry Technology
- Meituan wallet
- Tencent Credit
- Union Pay
- Xiaomi wallet