State of Pay: Mobile Payment & m-Commerce in China 2013 Edition

  • November 2013
  • -
  • Maverick China Research
  • -
  • 75 pages

Mobile Payment & m-Commerce in China 2013 is the sixth and latest edition of our most popular report. Simply put, it is the most up-to-date and comprehensive study available on China's mobile payment sector today. The report focuses on the top issues for m-payment in China in 2013: we profile all of the companies to have received mobile payment licenses up until now, discuss emerging trends, and cover important market changes to look out forin the coming years.

Highlights of Mobile Payment & m-Commerce in China 2013 include:

• Key Factors Shaping the Development of e-Commerce in China
• Direct Carrier Billing – Mobile Value-added Services
• Mobile as a POS – The Phone as a Cash Register
• Mobile as a Platform – The Phone as an Access Point
• Mobile as a Loyalty Card – Closed-loop m-Payments
• China m-Payment Market Forecasts

Mobile Users in China

Mobile devices are ready
The experience of shopping and purchasing through a phone is more compelling than ever, thanks to the iPhone and the generation of handsets and smartphones it has inspired. As of year-end 2012, approximately 30% of all phones sold in Chinaare smartphones (some industry sources claim as high as 60%); and this number continues to rise as smartphones become the dominant mobile device in China. Mobile apps are making it easier for users to customize their phones with software and services and third-party payment providers have been quick to release their own end-client apps; this substantially simplifies the process of getting their current online payment users to give m-payments a try. Furthermore, the introduction of the iPad and the tablet computer has further broadened the range of internet-connected devices that will be used for m-payments.

3G firmly established
China's 3G subscriber base grew dramatically in 2012 and numbers well over 200 million. The majority of new subscriptions are 3G subscribers, overall monthly growth remains strong, which suggests further 3G growth ahead.

Table Of Contents

Table of Contents

Executive Summary 1

1 Defining Mobile Payment 2
1.1 Mobile as a Wallet -The Phone as a Credit Card 3
1.2 Mobile as a Platform -The Phone as an Access Point 4
1.3 Mobile as a POS -The Phone as a Cash Register 5
1.4 Mobile as a Loyalty Card -Closed-loop m-Payments 6
1.5 Direct Carrier Billing -Mobile Value-added Services 7

2 Key Factors Shaping the Development of e-Commerce in China 9
2.1 A Late Start to Electronic Payments 9
2.2 Government Regulations and Payment Licenses 10
2.3 Consumers Still Paying with Cash (but Less) 13
2.4 Bankcards Issued: 3.5 Billion 14
2.5 Mobile Users in China 17
2.6 Mobile Internet Users: 420 million 19
2.7 Third-Party Payment Remains the Channel of Choice 21
2.8 Taobao and the Dominance of the Alibaba Group 22
2.9 E-Commerce as a Growing Component of China’s Retail Industry 24

3 M-payment in China: Mobile as a Platform 26
3.1 M-commerce Retail Shopping 26
3.2 Leading Payment Providers 30

4 M-payment in China: Mobile as a POS 31
4.1 SME Acceptance 32
4.2 Mobile Banking and Peer-to-peer (P2P) Remittances 32
4.3 Leading Payment Providers 33

5 M-payment in China: Mobile as a Wallet 34
5.1 Contactless Smartcards in China 34
5.2 Contactless Mobile Payment in China 35

6 M-payment in China: Direct Carrier Billing 38
6.1 China Mobile 40
6.2 China Unicom 41
6.3 China Telecom 41

7 China’s M-Payment Providers 42
7.1 China’s Leading Payment Providers 42
7.2 Third-Party Payment: Moving into Mobile 44
7.3 Market Share Breakdown 45
7.4 Market Pressures 46

8 Tier I Payment Provider Profiles 48
8.1 Alipay 48
8.2 Tenpay 50
8.3 China UnionPay (CUP) 52

9 Tier II Payment Provider Profiles 54
9.1 99Bill 54
9.2 Yeepay 56
9.3ChinaPnR 57
9.4Lakala 58
9.5 Zihexin 59

10 Notable Tier III Payment Providers 60
10.1 Chinabank Payment 60
10.2 ChinaMobile E-commerce 61
10.3 China Unicom Epay 61
10.4 China Telecom BestPay 62
10.5 IPS 63
10.6PayEco 64
10.7 Qiandai 65
10.8Qianfang 66
10.9 Sandpay 67
10.10 Shanghai Shengfutong 68
10.11SinaPay 69
10.12 Union Mobile Pay (UMPay) 70

11 Conclusions and Forecasts 71
11.1 Reasons for Optimism 71
11.2 Reasons for Pessimism 72
11.3 China m-Payment Market Forecasts 73
11.4 Future Trends to Watch 74



List of Figures

Figure 1: Product Model -Mobile as a Wallet 3
Figure 2: Product Model -Mobile as a Platform 4
Figure 3: Product Model -Mobile as a POS 5
Figure 4: Product Model -Mobile as a Loyalty Card 6
Figure 5: Product Model -Direct Carrier Billing 7
Figure 6: China's Late Start -e-Commerce Milestones 1995-2013 9
Figure 7: Third-party Payment Provider License Requirements 10
Figure 8: Mobile Payment Licenses 12
Figure 9: Total Use of Debit, Credit, and Cash-On-Delivery in Online Shopping 13
Figure 10: China Bankcard Circulation, 2002-2020 (M) 14
Figure 11: China’s Bankcard Penetration Rate, 2001-2020 (%) 15
Figure 12: China’s Credit Card Circulation, 2002-2020 (M) 16
Figure 13: Mobile Users in China, 2001-2020 (M) 17
Figure 14: 3G Users in China, 2001-2020 (M) 18
Figure 15: Internet Users in China, 2001-2020 (M) 19
Figure 16: Mobile Internet Users in China, 2005-2020 (M) 20
Figure 17: Accounts Held by Online Shoppers in China 22
Figure 18: Online Shopper Payment Provider Recognition 2013 23
Figure 19: Last Online PurchaseComparison 2012-2013 24
Figure 20: Average Online Purchases (Tier 1 vs. Tier 2/3) 25
Figure 21: Average Monthly Purchases (Mobile vs. Online), 2013 27
Figure 22: Average Monthly Purchases (Mobile vs. Online), 2013 (RMB) 28
Figure23: Average Monthly Mobile Purchases (Tier 1 vs. Tier 2/3) 29
Image 24: Public Transit Contactless Cards 34
Figure 25: Mobile Operator Overall and 3G User Market Share 39
Figure 26: China’s Third Party Payment Providers by Tier 43
Figure 27: China Third PartyPayment Provider Market Share Breakdown (%) 45
Figure 28: Factors Decreasing Profits for Tier II and Tier III Payment Providers 46
Figure 29: Mobile Payment Market Forecast, 2010-2015 (RMB Trillion) 73
Figure 30: Mobile Payment Market Forecast by Payment Tier, 2011-2015 (RMB T) 73

View This Report »

Find all the market research you need - instantly, in one place.

+1.2 Million Research Documents & Statistics +200,000 Trusted Public Sources 350 Industries With Global Coverage

24/7 Customer Support

Talk to Amrita

+1 718 303 2019

Purchase Reports From Reputable Market Research Publishers

Global Gaming Market Software, Hardware, Smart Phones, Computers, Animation)-Analysis, competitive landscape, Strategy, Overview, Size, regional analysis, Share, Global Trends, Opportunities, Segmentation and Forecast 2014-2020

Global Gaming Market Software, Hardware, Smart Phones, Computers, Animation)-Analysis, competitive landscape, Strategy, Overview, Size, regional analysis, Share, Global Trends, Opportunities, Segmentation and Forecast 2014-2020

  • $ 7 000
  • Industry report
  • November 2014
  • by Occams

Computer animation is the generation of animated images using computer graphics. CGI or computer generated imagery includes both static and dynamic images within its purview. Over the years computer animation ...

VoIP Services Market (Corporate Consumers and Individual Consumers) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020

VoIP Services Market (Corporate Consumers and Individual Consumers) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020

  • $ 4 795
  • Industry report
  • August 2014
  • by Transparency Market Research

Rising demand for affordable communication services across the globe and improving wireless and wired network infrastructure is fuelling the growth of voice over internet protocol (VoIP) services market. ...

The NEPs' automation and SON solutions: review of vendor solutions and CSP strategies

The NEPs' automation and SON solutions: review of vendor solutions and CSP strategies

  • $ 3 999
  • Industry report
  • November 2014
  • by Analysys Mason

Network planning and optimisation (NPO) processes will need to evolve towards a high degree of intelligent automation so that network resource utilisation can be maximised in near-real time. This report ...


ReportLinker is an award-winning market research solution that finds, filters and organizes the latest industry data so you get all the market research you need - quickly, in one place.