In Q4 2016, mobile shopping had a relatively high QoQ growth thanks to the e-commerce promotions such as “Double 11 Shopping Festival” and “Double Holiday Shopping Festival”. Meanwhile, as the penetration rate of smart phones climbed up, the users’ migration speed from PC to mobile was accelerated, and the mobile payment growth of other payment situations was significant. What’s more, the Central Bank for the first time acknowledged QL code payment. This boosted the development of QL code payment market, promoted the upgrading of offline market and accelerated the process towards non-cash society.
Mobile consumption will be the main engine for mobile payment development
In China’s third-party mobile payment market, mobile finance took a share of 15.1%, personal application accounted for 68.1%, and mobile consumption took up 11.6% in Q4 2016.
Data shows that mobile consumption experience a steady growth trend in 2016, indicating that mobile consumption was turning into the pillar of mobile payment sector. The Red Pocket Activity in 2016 changed people’s habit for money transfer, making a large amount of money flow among visual accounts.Meanwhile, the arising of withdraw fee encouraged users to pay with the account balance so as to avoid producing the fee. As the balance of users’ visual accounts accumulating and their offline payment habit forming, mobile consumption will take an increasingly large share in mobile payment.
The structure of third-party mobile payment sector was stable
In China’s third-party mobile payment market, Alipay and Tenpay occupied a share of 92.0% in total. Alipay took up 55.0%, and Tenpay accounted for 37.0% in Q4 2016.
In Q4 Alipay and Tenpay experienced fast GMV growth and kept their leading position in third-party mobile payment based on their own advantages. Other payment companies, although lacking competitiveness in situations Alipay and Tenpay covered, actively explored vertical situations and had admiring performances as well. Although their GMV were very small compared with that of Alipay and Tenpay, the payment companies focusing on one certain market segment had significant GMV growth thanks to the technology advancement and their unique advantages in the certain field.
1Qianbao stemmed from Pingan had huge advantages in financing, and its merging with Wantong improved its user experience and expanded its situation coverage. Thus, 1Qianbao had significant GMV increase in mobile group shopping and money transferring. Umpay strengthened its businesses with key clients based on its unique company background and achieved great development as well. The e-commerce promotion in Q4 and the mobilization of online shopping brought JDPay and Suning Pay large GMV; also, despite the slowing down of growth in P2P and some other Internet finance businesses, generally speaking Internet finance still had a steady fast development throughout 2016, and LianlianPay and Yeepay had rapid growth as well.