Mobile Payment in China: 2008-2009 Edition

Published: January 2009
No. of Pages: 96
  

Report Summary

Mobile Payment in China: 2008-2009 Edition, released in January 2009, is the newest edition to our m-payment series, which started in 2006 with Mobile Payment in China: Bricks and Clicks Going Mobile. Like its predecessors, it offers the most up-to-date and comprehensive study available on China's mobile payment sector.

In past m-payment reports, we covered the rapid proliferation of third-party payment companies, as each tried to develop a network of mobile operators, merchants, banks, and users. This rush of activity, which was largely funded by venture capital funds and private investments, has slowed in recent years; some companies have left the market, and others have significantly changed their strategy. As we enter 2009, only a small fraction of China's 600 million mobile users are using m-payment services.

Despite these difficulties, many are still optimistic about the future of moblie payment in China. This optimism starts with world's largest mobile user base and an underdeveloped e-payment infrastructure. The restructuring of China's telecom operators in 2008 created a new competitive environment in which each operator is looking gain an edge through moblie payment and other value-added service. And the issuance of 3G licenses in January 2009 has opened the door for a wide range of new m-commerce and m-payment services, many of which will arrive within the coming year.

Mobile Payment in China: 2008-2009 Edition draws from in-depth interviews with China's leading m-payment executives and industry experts. We examine the leading business models, profile key players in the market, and identify investment and partnership opportunities. We provide years of historical data, including the latest year-end 2008 numbers, and forecast mobile payment market growth in China for the coming years. Written on the ground in China but intended for an international

Mobile Payment in China: 2008-2009 Edition

Table Of Contents

Executive Summary

1 Introduction to Mobile Payment in China

1.1 Mobile payment definitions
1.2 Market statistics
1.3 M-payment and China's e-payment industry
1.4 Bankcards and other payment cards in China
1.4.1 Credit cards (信用卡)
1.4.2 Debit cards (借记卡)
1.5 Government regulation
1.6 The dominance of China UnionPay and China Mobile

2 M-payment Business Models in China
2.1 The mobile operator WVAS model
2.1.1 China Mobile's Monternet platform
2.1.2 China Unicom's Uni-info platform
2.2 The m-payment service provider model
2.3 The contactless smartcard model
2.4 Competitive analysis of competing models

3 M-payment Services Available in China
3.1 Mobile billing
3.2 Mobile top-up
3.3 Mobile ticketing
3.4 Mobile banking
3.5 Other services

4 Key M-payment Industry Players
4.1 Banks
4.1.1 The "Big Four"
4.1.2 Commercial banks
4.2 Mobile operators
4.2.1 Operator restructuring
4.2.2 3G license issuance
4.2.3 China Mobile
4.2.4 China Unicom
4.2.5 China Telecom
4.3 M-payment service providers
4.3.1 Union Mobile Pay (联动优势)
4.3.2 Smartpay Jieyin (上海捷银)
4.3.3 Guangzhou Huanxin (广州环信)
4.3.4 Unicom Huajian (联通华建网)
4.3.5 China M-World (联龙博通)
4.3.6 YeePay (易宝支付)
4.3.7 IPS (环迅支付)

5 Conclusions and Forecasts
5.1 Factors hindering m-payment development in China
5.2 China m-payment market forecasts
5.2.1 Mobile user forecast
5.2.2 3G user forecast
5.2.3 M-payment user forecast
5.3 Trends to watch for
5.4 Opportunities for foreign companies

6 Appendices
6.1 Glossary
6.2 Global m-payment industry groups
6.3 Directory of companies and organizations mentioned in this report
6.4 Related reports from Maverick China Research

List of Figures

Figure 1: Mobile subscribers in China, 2004-2008 (M)
Figure 2: Internet users in China, 2004-2008 (M)
Figure 3: Mobile internet users in China, 2004-2008 (M)
Figure 4: Bankcards in circulation in China, 2004-2008E (M)
Figure 5: China's late start: banking and e-commerce milestones 1950-2008
Figure 6: Different types of bankcards in China
Figure 7: Sample Chinese credit cards
Figure 8: Sample co-branded debit cards
Figure 9: Credit cards in circulation in China, 2006-2008 (M)
Figure 10: ATMs in China, 2005-2008
Figure 11: China government groups involved in m-payment regulation
Figure 12: Comparison of China's three leading m-payment models
Figure 13: The mobile operator WVAS model
Figure 14: The m-payment service provider model
Figure 15: Selected m-payment provider merchant partners by sector
Figure 16: The contactless smartcard model
Figure 17: Beijing's "Yikatong" contactless smartcard for public transit
Figure 18: Comparison of merchant and user fees for competing m-payment models
Figure 19: User base comparison for leading payment methods<
Figure 20: Typical product price range for competing m-payment models in China
Figure 21: Typical products sold over competing m-payment models in China
Figure 22: M-payment models and channels in China
Figure 23: M-payment services available in China
Figure 24: The mobile top-up purchasing process
Figure 25: China prepaid vs. postpaid mobile subscribers, 2004-2008E (M)
Figure 26: M-payment companies offering mobile top-up services in China
Figure 27: M-payment companies offering mobile ticketing services in China
Figure 28: Diagram or screenshot of mobile banking interface
Figure 29: M-payment companies offering mobile banking services in China
Figure 30: China's "Big Four" banks
Figure 31: Major Chinese banks and their m-payment provider partners
Figure 32: China's new telecom operator landscape, May 2008
Figure 33: China fixed-line users by month, 2007-2008 (M)
Figure 34: Mobile operator share of users, pre- and post-restructuring
Figure 35: Overview of China's top seven m-payment providers
Figure 36: UMPay m-payment services, merchant partners, and coverage areas
Figure 37: UMPay bank partnerships by area
Figure 38: Smartpay m-payment services, merchant partners, and coverage areas
Figure 39: Smartpay bank partnerships by area
Figure 40: Guangzhou Huanxin m-payment services, merchant partners, and coverage areas
Figure 41: Unicom Huajian's m-payment services, merchant partners, and coverage areas
Figure 42: China M-World's m-payment services, merchant partners, and coverage areas
Figure 43: YeePay m-payment services, merchant partners, and coverage areas
Figure 44: IPS' m-payment services, merchant partners, and coverage areas
Figure 45: IPS bank partners
Figure 46: China mobile user forecast, 2009-2013F (M)
Figure 47: China 3G user forecast, 2009-2013F (M)
Figure 48: China m-payment active user forecast, 2008-2010F (M)
Figure 49: China Mobile and China UnionPay: gatekeepers to China's m-payment industry

Published By: Maverick China Research
Product Code: Maverick China Research1001


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