China's Third-Party Online Payment GMV Reached 6.1 tn Yuan in Q4 2016

Source:iResearch April 17,20173:11 PM
The GMV of China’s third-party online payment reached 6.1 trillion Yuan in Q4 2016 with a YoY growth of 71.2% and a QoQ growth of 16.2%.

iResearch observed that thanks to the “Double 11” shopping festival, the GMV of online payment rose slightly and exceeded 6 trillion Yuan in the fourth quarter of 2016. Also, data showed that the GMV in each quarter of 2016 was generally 50% higher than that in 2015. Although mobile payment cast significant negative impact on the GMV of onltine paymen, online payment is in the process when the users’ paying  habit are shifting from PC to mobile, and the process is expected to continue for a while. Thus, the online payment GMV is forecasted to keep a QoQ growth between 12% and 15% in the following four quarters. 
Internet finance had admiring performance in Q4

In China’s third-party online payment market, Internet finance (including finance product selling and online credit business) took a share of 32.3%, individual businesses (including transferring and repaying) accounted for 31.7%, online consuming (including online shopping, O2O and flight travel) took up 22.5%, and recharging (including life service bill payment, mobile phone recharging, online gaming and visual products) took a share of 2.0%.
The two segment markets with the biggest shares in GMV of China’s third-party payment market were Internet finance and individual businesses. The number of payment platforms with individual businesses was small, and the traffic in the market segment mainly went to Alipay and Tenpay, the two giants in this field. Meanwhile, Internet finance has always been a popular market with fierce competitions among medium- and small-sized companies. Since the emergence of Yuebao, the wealth management cost for customers dropped sharply and the number of the users boomed up quickly. Currently, a couple of platforms are actively exploring traditional market segments like online credit, fund and insurance, and customer finance regarded as the “new blue ocean market” is expected to be the next battle field for payment companies. What’s more, the “Double 11” shopping festival slightly drove the GMV of online shopping industry up, and Alipay, JDPay and Suningpay were the main beneficiaries. 

Players in the second echelon had further development in different fields 

In GMV of China’s third-party online payment, Alipay took a share of 42.7%, Tenpay accounted for 19.2%, ChinaUMS took up 10.0%, 99Bill 7.0%, China Clearing 5.2%, ChinaPnR 4.9%, Yeepay 3.4%, JDPay 2.8%, Baofoo 2.5% and Suning Pay took up 2.0% in Q4 2016.
iResearch observed that the GMV structure of China’s third-party online payment market was generally stable in Q4 2016, and JDPay, Baofoo and Suning Pay held similar shares. JDPay and Suning Pay experienced significant GMV rise during “Double 11” shopping festival thanks to their advantages in e-commerce, and Suning Pay even had a QoQ growth higher than 50% in online shopping field. Baofoo started its exploration of Internet finance industry in Q3 and had GMV surge in Q4 as well. Meanwhile, ChinaPnR and Yeepay kept their lead roles in flight travelling. It seems that online shopping and individual businesses is transferring from PC to mobile, and medium- and small-sized payment platforms focusing on one certain segment play increasingly important roles in the market owing to their technological advancements and advantages in the segment markets.

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