China Third-Party Payment Industry Report, 2019-2025

In 2018, The Third-Party Payment Transactions Totaled Rmb312.4 Trillion in China, Surging by 42.8% on an Annualized Basis, of Which Rmb190.5 Trillion was Mobile Payments, a Spurt of 58.4%.

Third-party payment is comprised of traditional payment and emerging fin-tech services, of which payment services fall into five kinds, i.e., mobile POS (Point of Sale) payment, mobile payment, internet payment, POS service, and cross-border payment service. Mobile payment and internet payment are the most popular online payment methods in the current stage.

The increasingly tight oversight will favor the orderly development of the third-party payment market where transaction size will level off and is expected to hit RMB740 trillion in 2025.

Against the backdrop that smartphones and 4G network become ubiquitous and give mobile payments market a big boost, part of web payment transactions have been done on mobile terminals instead; and people’s habits of paying by scanning a code offline or via near field communication (NFC) are also a boon for the boom of mobile payments. In 2018, bank card acquiring business accounted for 28% of total payments in China, and the online ways of payment occupied 72%, of which mobile payment method made up over 85%.

Independent third-party payment: the industry with a CAGR of 81.1% has a rosy prospect: a diversity of profit models includes access charge, service fee, commissions, and other innovative models; “payment bundled with value-added services” may be trending. The requirement of handling over all the clients’ reserves in 2019 is proof of still stricter supervision.

Third-party payment: customized solutions which are becoming a hotspot come with a CAGR of 16.5% in the number of micro and small businesses: third-party payment industry growth hinges on the number of merchants, especially in the business and customer markets. Alipay and WeChat have been the tycoons in the consumer market; in the business market, the promising micro and small businesses market has been a battleground.

Competitive pattern: “2+1+N” pattern: the two giants WeChat and Alipay handle nearly 60% of transactions; UnionPay offers essential liquidation and settlement services; several third-party payment licensed firms scramble for market share, and the key factor for their expansion lies in quality products as oversights are being toughened.

This report highlights the following:

• China third-party payment industry (chain, access policies and standards, and key players)
  
• China third-party payment market (online and mobile payments) user research (nature, behavior, preference, etc.)
  
• China third-party payment market (development history, market size, competitive pattern, market share, new entrants, etc.)
  
• China third-party payment market segments (offline transactions, online payment, mobile payment, cross-border payment, etc.)
  
• 7 key Chinese third-party payment platforms (UnionPay, Alipay, WeChat, etc.), 9 independent firms, and 3 telecom operators (development strategy and SWOT analysis).