29 September 2016

China set to become m-payments mega-market - Celent

12 November 2010  |  9200 views  |  0 Chinese flag

China will soon be the largest mobile payments market in the world, with 410 million users by 2013, according to research house Celent.

China is already the world's largest mobile phone market, with 740 million users in 2009. In terms of remote mobile payment, the penetration rate in the market was 10% in 2009 but this is expected to soar 48% year-on-year until 2013. For contactless m-payments, penetration in 2009 was only 0.5% but the number of users for this technology is set to exceed 400 million by 2015.

In its report, Celent focuses on the country's three major m-payments players; mobile operators, banks, and third party companies although there are signs of increasing cooperation between the industries.

In May card network operator China Unionpay signed up a group of the country's banks, wireless operators and handset manufacturers to a mobile payments industry alliance that will establish standards and a business model.

Currently, mobile operators mainly focus on contactless m-payments, and they have established their own payment networks in shops, stations and other outlets. Banks are licensed to handle large transactions and are able to provide complex financial products, mainly focusing on large payments, with SD cards bound with cards.

Celent says that, in the long run, remote large value mobile payments will become the key development focus of China UnionPay and various operators, and the transaction total for these will far exceed contactless mobile payments.

Hua Zhang, analyst, Asia financial services group, Celent, says: "Partnerships with banks are very important for vendors who want to enter the market. Currently, the best business model in the Chinese market focuses on cooperation between operators and banks. Mobile operators and third party payment companies are also strengthening their cooperation with the banking industry for increased success."

The Celent figures contrast with a recent survey carried out earlier this year by KPMG which suggested that a massive 77% of respondents have used their mobiles for banking and 44% for retail transactions.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

UK hits contactless and mobile payments milestones

UK hits contactless and mobile payments milestones

03 November 2010  |  15225 views  |  0 comments
US m-banking take-up jumps 129% in two years

US m-banking take-up jumps 129% in two years

20 October 2010  |  9539 views  |  0 comments
Somali Islamists ban mobile money

Somali Islamists ban mobile money

19 October 2010  |  7960 views  |  0 comments
South Korea to see surge in contactless m-payments - Celent

South Korea to see surge in contactless m-payments - Celent

01 October 2010  |  7395 views  |  0 comments
15% of Americans use mobiles to make purchases - survey

15% of Americans use mobiles to make purchases - survey

20 August 2010  |  8614 views  |  0 comments
Bank-to-customer mobile messaging rates set to treble - Juniper

Bank-to-customer mobile messaging rates set to treble - Juniper

17 August 2010  |  9929 views  |  1 comments
China leads while US lags in mobile banking uptake

China leads while US lags in mobile banking uptake

23 July 2010  |  12661 views  |  0 comments
China moves to regulate non-bank online payment providers

China moves to regulate non-bank online payment providers

22 June 2010  |  7659 views  |  0 comments
Chinese players form m-payments alliance

Chinese players form m-payments alliance

13 May 2010  |  9525 views  |  0 comments
China Mobile eyes m-payments with bank stake

China Mobile eyes m-payments with bank stake

04 March 2010  |  8999 views  |  0 comments
China emerges as a growth market for non-cash payments

China emerges as a growth market for non-cash payments

09 September 2009  |  8025 views  |  0 comments

Related blogs

Create a blog about this story (membership required)
Visit contisgroup.comFind out more

Who is commenting?

Top topics

Most viewed Most shared
RBS tests demonstrate ability of Ethereum to support a national domestic payments systemRBS tests demonstrate ability of Ethereum...
14454 views comments | 55 tweets | 48 linkedin
Ripple rudely gatecrashes Sibos partyRipple rudely gatecrashes Sibos party
9550 views comments | 30 tweets | 29 linkedin
Swift beware: Ripple signs banks to global payments steering groupSwift beware: Ripple signs banks to global...
9126 views comments | 33 tweets | 18 linkedin
BNP Paribas is working with clients on blockchain deploymentBNP Paribas is working with clients on blo...
7454 views comments | 14 tweets | 30 linkedin
US gets same day ACHUS gets same day ACH
7003 views comments | 23 tweets | 20 linkedin

Featured job

EUR Competitive
Brussels - Belgium or Paris - France

Find your next job