In 2018, China's third-party mobile payment transaction volume reached 190.5 trillion Yuan with a YoY growth of 58.4%. Currently, people have formed the habit of mobile payment in their daily life, and the penetration rate of third-party mobile payment has attained a relatively high record, indicating that the booming era for third-party payment in China has ended. What’s more, the implementation of several related policies like “cutting the direct connection between third-party payment companies and banks” and provision policy marked the steady growth of third-party payment market in China. At this stage, the fast development of mobile finance and the further penetration of new payment scenarios in offline payment may become the main market growth drivers.
In third-party mobile payment market, share of mobile finance increased from 16.3% in Q1 2018 to 16.9% in Q4 2018, share of mobile consumption expanded from 13.7% in Q1 2018 to 20.8% in Q4 2018, and share of personal applications declined from 66.9% in Q1 2018 to 60.0% in Q4 2018.
iResearch holds the opinion that the platform-based strategy of “Yu Ebao”, the monetary fund product developed by Alipay, helped its sales increase fast in the second half of 2018, offsetting the negative impact from the traffic limitation of “Yu Ebao” in Q1 2018 and accelerating the recovery of mobile finance. As for mobile consumption, promotions like “Double 11”, “Double 12” on the major e-commerce platforms in 2018 led to the significant expansion of mobile consumption’s share in Q4 2018, and the steady development of offline code scanning payment market backed the growth of mobile consumption’s share throughout 2018.
According to iResearch, China’s third-party mobile payment market has high concentration. Alipay and Tenpay composed the first echelon and took 54.3% and 39.2% of the market respectively in 2018. Alipay made great efforts to develop mobile finance and mobile consumption in the second half of 2018. Its trading volume thus increased correspondingly and its share in mobile payment showed moderate growth in 2018 compared with that in 2017.
Meanwhile, other payment companies in the second echelon were actively developing in the other market segmentations. 1Qianbao also presented a growth in trading volume thanks to its two major promotions, “520” and “920” and its volume ranked the third in the third-party mobile payment industry. The 1Qianbao’s enterprise business decelerate expansion to finance, e-commerce, flight & traveling and other industries, and has covered more than one million medium- and small-sized companies. Umpay promoted “Payment + Supply Chain” comprehensive financial services guided by its platform-based, intelligent, chain-like and internationalized development strategy accelerated its trading volume growth, too.JDpay experienced the fast growth as well and ranked the fifth thanks to the admiring performance of JD e-commerce platform and financial services. YeePay strengthened its marketing and furthered its development in Internet finance, flight booking and travel market. CMpay as a transformer from communication network to payment network connected data stream, information stream and capital stream and made the connections more valuable. SuningPay devoted itself to O2O businesses and offers customer and business all-scenario payment services that are convenient, safe and applicable in both online and offline scenarios.