Mobile Finance Got A Shrinking Share in China's Third-party Mobile Payment Market

Source:iResearch March 12,20194:35 PM
In the first half of 2018, the trading volume of China’s third-party payment reached 98.5 trillion Yuan. The trading volume in Q1 2018 was 48.3 trillion Yuan with a QoQ growth of 24.2%, and the trading volume in Q2 2018 was 50.1 trillion Yuan with a QoQ growth of 3.8%.
Thanks to positive influence from the Spring Festival, the trading volume of third-party mobile payment market kept a relatively high growth rate in Q1 2018, while in Q2, QoQ growth of the trading volume dropped significantly, as some payment businesses of payment companies were influenced by decline of the fund purchase scale and the policy that cut the direct connection between third-party payment and banks and introduced UnionPay or NetsUnion Clearing to third-party payment.
In third-party mobile payment market in Q1 2018, share of consumption and finance declined hand in hand. Personal applications accounted for 72.5%, mobile finance took up 13.5% and mobile consumption took a share of 11.0%. In Q2 2018, share of personal applications fell to 71.7%, share of mobile finance declined to 12.3%, and share of mobile consumption recovered to 12.3%.
iResearch holds the opinion that the shrink of mobile consumption’s share in Q1 2018 was largely resulted from the “Double 11” shopping festival in the previous quarter, and the unsatisfying performance of finance sector was mostly because some monetary funds experienced purchase restrictions and users have not get used to other alternative products. In Q2 2018, the decline of fund purchase scale and the policy mentioned above led to the continuous share shrink in mobile finance. At the meantime, share of mobile consumption bounced up thanks to the promotions at the mid-year, for instance the “618” shopping festival.

The data from iResearch show that the concentration of China’s third-party mobile payment market was still high. Alipay and Tenpay composed the first echelon and took 93.5% of the market, while other payment companies in the second echelon actively explored market segments. 
1Qianbao aims at developing a comprehensive wallet app for individual users and offer complete informatized business solutions for companies. Currently, the services of 1Qianbao have covered all scenarios in Pingan and widely penetrated in the mall and medium-sized businesses. 1Qianbao immersed into finance, e-commerce, traffic and travel and other segment markets and its transaction volume ranked the third in the third-party mobile industry.Umpay promoted “Payment + Supply Chain” comprehensive financial services based on its strategy for platformization, intelligent, chain-like and internationalized services. 

JDpay experienced fast growth as well and ranked the fifth thanks to the “618” shopping festival and its financial services. 99Bill had fast expansion in Wanda-based scenarios like shopping malls, movie theaters and travel services. YeePay strengthened its marketing and furthered its development in Internet finance and travel market. CMpay as the 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-side and business-side clients all-scenario payment services that are convenient, safe and applicable in both online and offline scenarios.

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