China Third-party Payment Market Foresight and Investment Strategy Report, 2013-2017

This report mainly analyzes the following aspects: operational environment of China third-party payment industry; development status and competition of China third-party payment industry; market segmentation of China third-party payment industry; investment potential in the application fields for China third-party payment industry; competitive landscape in key regions for China third-party payment industry; competitors’ operational condition in China third-party payment industry. Meanwhile, together with the comprehensive and detailed market data which is accumulated for 5 years, Forward helps you to grasp the market and development trends of third-party payment industry, so as to win advantages from competition!

The third-party payment is an important part of financial service industry, as well as the basic and driving force of the fast developing Internet economy in China. The third-party platform plays a significant role in making up the blank of bank service function, improving the efficiency of financial trading, completing financial system and financial functions. With the rise of domestic E-commerce, some payment platforms established by information service corporations also come into being. As a new industry with new technology, new structure and new model, the third-party payment has a broad market prospect.

The year of 2011 is significant for the developing progress of China third-party payment industry. And along with many supervision laws and regulations are issued, it is an overall supervision time for the third-party payment industry. The industry keeps a strong growth in 2011 that the overall trading scale breaks through 2 trillion Yuan and with a growth rate of over 100%. In the aspect of market structure, the Alipay works as the leader of the payment market with the market share of 49.0%, and then follows the Tenpay and Unionpay. Moreover, by the end of 2011, among the existing over 300 third-party payment corporations, 101 corporations have got the payment certification. In other words, there are more and more operators for third-party payment, including Internet payment corporations, mobile payment corporations, prepaid card corporations and bank card payment corporations. To sum up, it is golden development period for China third-party payment industry.

Currently, the core business of China third-party payment market is the third-party online payment market which takes 96% shares. This market speeds up the development since 2004 and has an explosive growth in 2008 and 2009. The publishment of

Management Approaches on Non-financial Institutes Payment Services and Implement of Management Approaches on Non-financial Institutes Payment Services (Exposure Draft) which are issued by PBC in 2010 ends the primary growth of the third-party payment industry and starts the legal status as the industry has been formally involved in the state supervision system. In the future, the third-party payment industry will face the structure coexisting with high industry centralization and differentiation advantages. Moreover, it will have a breakthrough in the profit model and starts the elimination for domestic payment industry.

In September, 2011, Alipay declared the acquisition agreement with the third-party payment service company, Anka, which is a branch of Anka International Group. It is the first revealed substantial acquisition to the third-party payment field since the central bank issuing payment licences. According to analysis, after the issuing payment licences, trend of capital flowing towards payment industry will be more obvious, investment and merger in the aspect of capital will be more frequent, and the acquisition for leading payment corporations and giants as well as large sum of capital infusion will be prevalent. It can be inferred that the industry expansion and merger are inevitable. In the meantime, the corporations with payment licence will be advancing in brand advantages, market occupation as well as financing and listing. China third-party payment industry will strengthen the advantages in the coastal areas, the southwest areas and Inner Mongolia, and will further extend other regions.

View from the regions, China third-party payment corporations mainly concentrate in economy-developed provinces and cities as the environment of E-commerce supporting industry is fine. It has a close relationship with the strong capacity of local environment, great supports from local government and well accumulative conditions to economy and population. In spite of this, the developed economy actives the online shopping, online trading and online payment, as well as the comprehensive services for business, trading, finance and logistics.

What’s more, the third-round payment licences issued by central bank provide a wider business range for the third-party payment. The third-party payment corporations will be able to expand the online payment service toward offline market and has a broader market space by the ways of bankcard payments and others. Still, the current third-party payment industry is on the stage of “micro profit” and with a serious homogenization. Taking a view from the practical situation we can find that the competition among the third-party payment corporations is still focuses on the fields of online shopping, air ticket, telecom payment and online games. But the following question is, profit of the fields is limited and the corporations need to seek a new breakthrough.

With the improving brand popularity of the third-party payment industry and issuing payment licences, the customized solutions which aim to improve the turnover efficiency will be gradually and widely accepted traditional corporations. The third-party payment corporations will strengthen the penetration towards traditional corporations by providing industry solutions. And for the third-party payment corporations, it is trend to increase the payment on overall construction and perfect the third-party payment platform and stationing. Meanwhile, the payment industry will have a diversified and fast development that many corporations will be involved in all links of industrial chain. The third-party corporations must overcome their own weak points by learning from each other's strong points. This is the only way for them to have a new development during the reconstruction.

This report mainly analyzes the following aspects: operational environment of China third-party payment industry; development status and competition of China third-party payment industry; market segmentation of China third-party payment industry; investment potential in the application fields for China third-party payment industry; competitive landscape in key regions for China third-party payment industry; competitors’ operational condition in China third-party payment industry. Meanwhile, together with the comprehensive and detailed market data which is accumulated for 5 years, Forward helps you to grasp the market and development trends of third-party payment industry, so as to win advantages from competition!

Major characteristics of this report are forward-looking and timeliness. Base on the forward-looking analysis of massive research data, we further analyze the development scale and competitive landscape of third-party payment industry. Along with the industry development route and our practical experience, we analyze and predict the future development prospect of third-party payment industry. This report contains a high value for enterprises like third-party payment system equipment manufacturers, R&D institutions, management corporations and investment corporations to accurately know the latest industry development trend, obtain market opportunities and determines an insightful operation strategy and development direction.

Here, we’d like to express our sincere gratitude to National Statistics Bureau of China, International Information Institute, National Institute of the Ministry of Commerce, National Tsing Hua University Library, Institute of Market Economy of the State Council Development Research Center, and Beijing Qinghua Forward Market Research Center, etc. Thank you so much!

Notice: all the market data, especially the corporation list data in this report is only for business reference. Please don’t take the data for enterprise publicity. Thank you! Or Forward shall not take any responsibility for any consequences!

Qianzhan Business Information Co., Ltd. Industry Research Center
Research Team of Third-Party Payment Industry