Mobile Payment Heats up the Third Party Payment Market

According to iResearch, GMV of China third-party online payment topped 1 trillion Yuan in Q1 2013, with a QoQ drop of 4.4% and a YoY growth of 31.2%. Meanwhile, GMV of third-party mobile payment reached 64.61 billion Yuan.

Influenced by the slump of online purchases, online payment experienced a negative QoQ growth for the first time.

In China third-party online payment market segments, online shopping market only accounted for 37.5% of the total, falling to rock bottom since Q1 2012. However, air tickets and telecom charge service had a slightly increasing share, online game market maintained stable share, and other markets which were characterized by traditional industries’ e-commercialization kept growing.

iResearch believes, declining QoQ growth rate of China third-party online payment market in Q1 2013 is attributed to following reasons. On the one hand, traditional online payment market was saturated and had little development room. On the other hand, online shopping market with the largest share in online payment market can easily be affected by season. In fact, GMV of China online shopping market was 352.08 billion Yuan in Q1 2013, dropping 17.1% compared with Q4 2012.

Online payment market tends to be stable.

China online payment industry entered a mature stage after over ten years of development. Of China third-party online payment enterprisers, Alipay ranked the first with 48.3% market share, followed by Tenpay 20.1% and UnionPay 10.5%. And then, 99Bill, China PnR, Yeepay and IPS took four places in order from fourth to seventh in Q1 2013.

The mobile payment industry is in its infancy.

GMV of China third-party mobile payment reached 64.61 billion Yuan in Q1 2013, in which mobile online payment occupied the largest share of 69.2%, followed by text message payment of 28.1%. Meanwhile, proximity payment only accounted for 2.7% of the total.

iResearch holds that, at present, mobile remote online payment enters a rapid growing stage because driven by innovation demand of mobile technology and financial technology, surge of China mobile internet economy, mobile e-commerce and O2O e-commerce promotes rapid development mobile remote online payment like in-app payment.However, as application scenario and application content of non-proximity payment are immature, it takes time to see strong growth of the market.

Mobile payment standards have been published.

As China financial mobile payment technology standards was issued at the end of 2012, China mobile payment chain would be gradually formed and competition would become fiercer in 2013.In China mobile payment market, the leading enterprises were internet giant and early-established mobile payment enterprises in Q1 2013, in which Alipay ranked first with the share of 47.8%, followed by UMPAY with 17.5%, and China UnionPay came in third with 6.4%. Meanwhile, the top three of mobile online payment markets are Alipay, China UnionPay and Tenpay.

China third-party payment market Trend in 2013.

2013 is an extraordinary year for China third-party payment industry.Firstly, the merger and acquisition based upon license, stores, users and innovating business models will happen frequently. The third party market landscape is also going to change.Secondly, there will be fiercer competition in the market. Under the guidance of future market prospects and policies, the underdeveloped areas such as third- and fourth-tier cities, rural areas, etc. and cross-border payment business turn to be crucial markets for players to seize.Thirdly, although financial institutions, telecom operators, third-party payment enterprises and internet giants all make efforts on the mobile payment strategy, none of them have shown obviously advantage in the market. Thus, Rapid strategy adjustment will lay a solid foundation for competitors to struggle for a position in mobile payment market.


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