Table of Contents
Overview
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- What you need to know
- Covered in this Report
Executive Summary
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- The market
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- Figure 1: Market value of third-party payments, 2011-21
- Companies and brands
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- Figure 2: Market share of third-party mobile payments, by payment value, 2015
- Figure 3: Market share of third-party online payments, by payment value, 2015
- The consumer
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- Figure 4: Type of payment methods used, May 2016
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- Figure 5: Mobile payment occasions, May 2016
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- Figure 6: Reasons for using mobile payment, May 2016
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- Figure 7: Key drivers of overall satisfaction with credit cards, May 2016
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- Figure 8: Most often used non-cash payment methods, May 2016
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- Figure 9: Selected mobile payment methods used, by consumer classification, May 2016
- What we think
Issues and Insights
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- How far is China from a cashless society?
- The facts
- The implications
- What is so fascinating about mobile payment?
- The facts
- The implications
- Where are the opportunities for payment service providers?
- The facts
- The implications
The Market – What You Need to Know
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- Rapid-growing third-party payment market
- New regulations introduced to the market
- New opportunity emerges on the market
Market Size and Forecast
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- Third-party payment market to reach RMB 225 trillion in 2021
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- Figure 10: Market value of third-party payments, 2011-21
- Third-party mobile payment is gaining ground
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- Figure 11: Payment volume and value of banking institutions and third-party payment organisations, 2015
- Slowing down growth of bank card market
Market Drivers
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- Subsidies for consumers using third-party payment
- Lower fees on merchants
- Updated third-party payment regulation
- QR-code-scan payment back to operation
- The introduction of pay-by-credit service by third-party organisations
Key Players – What You Need to Know
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- Alipay leads in mobile payment market but Tenpay is slicing share
- Differentiated competition strategies of market players
- Beyond payment methods
Market Share
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- Alipay is losing market share to Tenpay on mobile payment
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- Figure 12: Market share of third-party mobile payments, by payment value, 2014 and 2015
- Stabilised competition in third-party online payment market
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- Figure 13: Market share of third-party online payments, by payment value, 2014 and 2015
Competitive Strategies
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- Alipay
- Tencent
- China UnionPay
- 99Bill
- Specialised in specific industries
Who’s Innovating?
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- Apple Pay
- Pay Watch by Alipay
- From Google Wallet to Android Pay…
- …to Google Hands Free?
- The future Alipay sees
The Consumer – What You Need to Know
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- Mobile payments’ usage rate exceeds credit cards’
- Subsidies are driving the usage but convenience is the real killer point
- Under-engaged affluent consumers
Payment Methods Used
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- Mobile payment exceeding cards
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- Figure 14: Type of payment methods used, May 2016
- Young adults are fans of new payment technologies
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- Figure 15: Type of payment methods used, by age, May 2016
- Better-educated consumers tend to use more payment methods
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- Figure 16: Number of payment methods used, by educational level, May 2016
Mobile Payment Usage Occasions
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- Merchants’ support is necessary for using mobile payment methods
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- Figure 17: Mobile payment occasions, May 2016
- The push of third-party payment organisations is driving usage
- Different battlefields for mobile app payment and mobile NFC payment
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- Figure 18: Top five usage occasions for mobile app payment and mobile NFC payment, May 2016
Reasons for Using Mobile Payment
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- Convenience is key, discount is driver
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- Figure 19: Reasons for using mobile payment, May 2016
- Spontaneously, rather than prompted
- Thirtysomethings and men find mobile payment fashionable
- Safety issue is not stopping young adults from using mobile payment
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- Figure 20: Selected reason for using mobile payment, by age, May 2016
Non-Cash Payment Preferences
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- Alipay rules the market
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- Figure 21: Most often used non-cash payment methods, May 2016
- Affluent consumers stay loyal to credit cards
- Potential to grow internet pay-by-credit services among young adults
- High-end consumption occasions are white spaces for wallet products
Satisfaction with Non-Cash Payments
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- Satisfaction largely aligns with usage rates
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- Figure 22: Satisfaction with non-cash payment methods, May 2016
- Speed is good, but wider merchant supports are needed
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- Figure 23: Overall satisfaction with main non-cash payment methods, by payment methods, April 2016
Key Drivers of Satisfaction with Non-Cash Payments
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- High credit limit and easy to use are advantages of credit cards
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- Figure 24: Key drivers of overall satisfaction with credit cards, May 2016
- JD IOU’s perception is close to credit card, while Huabei stands out
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- Figure 25: Key drivers of overall satisfaction with JD IOU, May 2016
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- Figure 26: Key drivers of overall satisfaction with Huabei, May 2016
- Alipay excelling in almost every aspect
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- Figure 27: Key drivers of overall satisfaction with Alipay, May 2016
- WeChat Wallet as a valuable complement of WeChat
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- Figure 28: Key drivers of overall satisfaction with WeChat Wallet, May 2016
- China UnionPay Wallet to highlight supportive merchants
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- Figure 29: Key drivers of overall satisfaction with China UnionPay Wallet, May 2016
Meet the Mintropolitans
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- Mintropolitans triple the usage of mobile NFC payment
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- Figure 30: Selected mobile payment methods used, by consumer classification, May 2016
- More MinTs choose credit cards as first payment choice than non-MinTs
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- Figure 31: Selected most often used non-cash payment methods, May 2016
- MinTs are paying more attention to safety
Appendix – Market Size and Forecast
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- Figure 32: Market value of third-party payments, 2011-21
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Appendix – Market Segmentation
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- Figure 33: Market value of online third-party payments, 2011-21
- Figure 34: Market value of mobile third-party payments, 2011-21
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Appendix – Methodology and Abbreviations
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- Methodology
- Key driver analysis methodology
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- Figure 35: Satisfaction with different aspects of main non-cash payment methods, April 2016
- Fan chart forecast
- Abbreviations
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