China's Third-Party Payment Transactions Hit 28.0 Tn Yuan in China in 2017

Source:iResearch November 26,20182:50 PM

According to iResearch Consulting Group,the fast development of online wealth management and online credit services in Internet finance industry fueled the steady growth of China’s third-party payment industry. As the competition shifted from PCs to mobiles for China’s third-party payment companies represented by Alipay and Tenpay, market share of second-echelon third-party payment companies expanded compared with 2016. Currently, second-echelon companies are actively making their own advantages into full play, diversifying their development strategy and deepening their development in segment markets. In the future, Internet payment companies may face a lot of opportunities as well as challenges.

In 2017, Internet finance (including financial product sales and online lending services) accounted for 40.0% in China’s third-party online payment industry by transactions; personal businesses (including money transfer and credit card repayments) took up 27.4%; online consumption (including online shopping, O2O businesses and flight/travel services) accounted for 15.4%; and recharging (including local service payments, telecom fee recharging, online games recharging and visual products) took of 2.4% of the general third-party online payment transaction volume.

Currently, the two biggest segments in China’s third-party online payment market are Internet finance and personal businesses. Personal business segment has long been dominated by Alipay and Tenpay, the two giants in this field. However, as people now more and more prefer mobiles than PCs, the share of personal businesses in general third-party payment market is declining. As for Internet finance, it has always been an important battlefield for second-echelon payment companies. Currently, a series of platforms are actively exploring segmented markets, such as online loan, funds and insurances, while due to the increasingly tightened regulation on Internet finance as well as the unrest in online loan segment, the growth of third-party payment transaction volume in China’s Internet finance market is expected to slow down in 2018.

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