The GMV of China's Third-Party Mobile Payment Shot up 113.4% in Q1 2017

Source:iResearch July 11,20171:31 PM
The GMV of China's third-party mobile payment topped 20 Tn Yuan in Q1 2017, skyrocketing 113.4% from a year earlier and 22.9% from the preceding quarter.

iResearch believed that driven by the Spring Festival, the GMV of China's third-party mobile payment increased obviously in Q1 2017. During the Spring Festival, personal applications such as red envelop and transferring were used more, thus contributing much to the growth of the third-party mobile payment GMV. Meanwhile, as people had more leisure time in the Spring Festival, obvious growth was registered in payment in such scenarios as offline payment scenarios and mobile gaming. In addition, for the habits of wealth management via third-party payment were being cultivated and the rate of return of some monetary funds rose, mobile finance contributed much to the third-party mobile payment GMV in Q1.
In China’s third-party mobile payment GMV in Q1 2017, mobile finance took a share of 17.5%, personal applications 70.6% and mobile consumption 9.1%.

iResearch found that mobile finance took a larger share in Q1 because of the following two reasons. Firstly, people had a stronger awareness to manage wealth via third-party payment. More importantly, some monetary funds registered higher rate of return, thus resulting in more purchases. For example, the 7-day average annualized return of Yu’e Bao was high in Q1 2017, enabling the purchases increase by 25% from 1% of the preceding quarter. In addition, the share personal applications took increased because more people sent red envelopes and transferred money. 
According to iResearch, the market share of Alipay and Tenpay reached 54.0% and 40.0% separately while other payment enterprises enjoyed the rest market share of 6%.

iResearch holds the opinion that Alipay and Tenpay had absolute advantages in market competition thanks to the large user base and various payment scenarios. In Q1, driven by consecutive growth in the rate of return, the purchases of Yu’e Bao broke a new record. Alipay’s outstanding performance in financial sector dramatically promoted its GMV growth. Due to the Spring Festival, Tenpay saw a explosive growth in transferring. Assets stored through transferring also pushed up the use of Tenpay in transportation, offline payment as well as mobile phone recharging. As Internet finance services shift to mobile from PC, 1Qianbao stemmed from Pingan grew rapidly in Q1. At the same time, UMPay and Lianlianpay which focused on Internet finance services developed fast; JDPay, 99Bill, YeePay and Suning Pay experienced a steady growth by further exploring diversified market segments.

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