​GMV of China's Third-Party Mobile Payment Market Topped 27 Tn Yuan in Q2 2017

Source:iResearch October 23,20172:40 PM
GMV of China’s third-party mobile payment reached 27.1 trillion Yuan in Q2 2017, soaring 95.4% from a year earlier and up 19.5% compared with the previous quarter.

iResearch holds the opinion that after the Spring Festival, the growth of red pockets and account transferring slowed down, while payment amount per order increased as growth of small payment represented by red pocket decelerated . Meanwhile, the increasing of entertainment and gaming dived as well. To a large extent, the high growth of China’s third-party mobile payment in Q2 is attributed to the e-commerce promotions in June. In the past four quarters, the YoY growth declined gradually as its share in the online payment market shrank when the market size increased, while it still maintained a relatively high level thanks to the effort mobile payment made to expand their payment situations.
In Q2 2017, mobile finance took a share of 17.2% in the third-party mobile payment industry, personal applications took up 70.2%, and mobile consumption took a share of 9.6%.
iResearch believes that the GMV of the four main market segments all rose, and mobile consumption enjoyed the fastest growth rate. As for mobile finance, monetary fund represented by Yu’ebao still kept a relatively fast development in Q2, and other financial products had steady growth. Mobile consumption also enjoyed a GMV share increase, for its GMV climbed up significantly with the massive e-commerce promotions in June and showed a relatively high growth rate thanks to the development of offline QL code scanning, NFC consumption and other offline payment businesses. However, the growth of personal applications slowed down after the Spring Festival Effect.
Data in Q2 2017 shows that Alipay occupied 54.5% of the third-party mobile payment market, Tenpay took up 39.8%, and other payment companies had a share of 5.8% in total. iResearch holds the opinion that users’ number  and awareness of brand had great influence on the GMV of mobile payment companies, thus China’s mobile payment market got more concentrated to Alipay and Tenpay. The individual subscription share in Yu’ebao had a QoQ growth of 22.1% in Q2, which greatly fueled the fast development of Alipay. 

Meanwhile, the growth resulted from e-commerce promotions was also admiring. The promotion of offline payment code effectively stimulated the offline growth of Alipay. Meanwhile, the mobile payment GMV of Tenpay kept a steady growth in all the payment situations and the amount per order rise because the Spring Festival e ended and Tenpay extend its business from social fields to financial fields. Apart from the two giants, other third-party mobile payment companies also realized a high growth through sales promotion, new situation exploring and new cooperating mode. For instance, JD payment had fast growth in Q2 thanks to its promotion activities and new situations brought by new cooperating modes, and 1Qianbao improved its user activity by sales promotions and explored new consumption situations such as Internet real estate, Internet auto and commercial real estate. 

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