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Analysys: The transaction size of China's third-party mobile payment market reached RMB 5,970.3 billion in 2016Q1.
According to the data in the Quarterly Monitoring Report on China's Third-party Mobile Payment Market in 2016Q1 released by Analysys, the transaction size of China's third-party mobile payment market reached RMB 5,970.3 billion in the first quarter of 2016, with comparative growth on moving base of 5.34%.
  • 12 Sep, 2016
  • Finance
  • 768
Analysys: 
According to the data in the Quarterly Monitoring Report on China's Third-party Mobile Payment Market in 2016Q1 released by Analysys, the transaction size of China's third-party mobile payment market reached RMB 5,970.3 billion in the first quarter of 2016, with comparative growth on moving base of 5.34%. 
In the first quarter of 2016, the overall pattern of the mobile payment market was relatively stable. The share of Alipay in the mobile market declined, but Alipay still ranked first in the mobile payment market with the 63.41% market share. TenPay ranked second. Driven by the frequent transactions of "red envelopes" in the Spring Festival and social transfers, the market share increased significantly by 23.03%. Lakala ranked third with the market share of 5.37% this quarter. 
Analysys believes that the growth of mobile payment in the fourth quarter of 2015 mainly resulted from the sales season of e-suppliers. In the first quarter of 2016, due to the advent of the Spring Festival holiday, the transaction size of e-suppliers to some extent shrank compared to that in the fourth quarter of 2015. In addition, due to the negative impacts on Internet finance, investors were more cautious. Therefore, despite the popularity of "red envelopes" during the Spring Festival, due to the decline of single-customer transaction size, the growth of transaction size of the overall mobile payment market declined compared to that in the fourth quarter of 2015. 
In the first quarter, the hottest topic remained "red envelopes" in the payment market. According to Tencent's public data, the WeChat Moments users reach 420 million in the New Year's Eve. The total send-receive amount of WeChat Moments reached 8.08 billion times on the same day. The QQ Wallet users reached 308 million in the "Shua Yi Shua" activity in the New Year's Eve. The interactions reached 189.4 billion times. Alipay participated in the 2016 Spring Festival Gala as the exclusive interactive platform. It launched two kinds of "red envelope" activities during the Spring Festival - "Lucky Card Collection" and "Xiu Yi Xiu", further enhancing the participation of the users and, to some extent, increasing its relation chain data in social and financial scenarios. Data show that, in the New Year's Eve, the users participated in Alipay's "Xiu Yi Xiu" activity on the interactive platform for 324.5 billion times. Baidu Wallet also joined the "red envelope war" this year by launching two kinds of "red envelope" activities during the Spring Festival: "Voice Red Envelope" and "Photograph the Chinese Character удЈ and Receive a Red Envelope". Data show that, as of February 8 12:00 am, the "Happiness Bag" of Baidu Wallet had been opened 11.2 billion times. The mobile Baidu Wallet users participated in the voice interactive activity for a total of 320 million times by shouting "Happiness Bag". Analysys believes that "red envelope" marketing has become a normal state. WeChat, Alipay and QQ that enjoy a huge traffic remained the protagonists in the payment market during the Spring Festival. The focus has gradually changed from the new high of individual mobile payment users in the initial period to the "red envelope" marketing of businesses. Users and businesses are further linked by "red envelopes". 
Due to its long-term work for electrical payment and financial planning, Union Mobile Pay could maintain a stable growth in transaction size. Its rapid development of the UMP business also brought it a new growth. As a vanguard in the app payment industry, LianLianPay also maintained a steady growth in the mobile payment transaction size this quarter, mainly based on its previous Internet finance customers. In addition, its customers in the air travel industry, such as LY.com and Ctrip, brought it certain market transactions after advent of the Spring Festival. YeePay determined its mobile priority strategy in 2015, with the focus on the development of emerging industries represented by Internet finance and O2O e-suppliers. The e-business, tourism, education, community and other services obtained a rapid development. This quarter, the growth in the mobile payment transaction size was significant. 
By launching the "Novice Financing", "Credits for the 1qianbao Ping An Hui Ying Purchasers" and other activities, 1qianbao.com, which is affiliated with Ping An Pay, greatly improved the proportion of its new users. Nearly 200,000 people participated in the two-week "Surprise Gifts for the Transfers in the Spring Festival" activity, enhancing the transaction size of financing, household payments and shopping malls. 
Internet finance has become one important strategy of Baidu, which took frequent actions recently. As the access to its business and traffic, Baidu Wallet benefited therefore and for the first time entered the top ten in terms of market share in the first quarter of 2016. The main contributors of its transaction size were financing, Baidu Waimai, Nuomi.com, and other household service scenarios. The gradually improved setup of scenarios, a large user base, and the further reinforced financial attribute provided an impetus for the growth of Baidu Wallet. 
This quarter, China UnionPay promoted NFC by virtue of Samsung, Apple and other mobile phone manufacturers. Xiaomi acquired the third-party payment license and entered the payment market by means of acquisition of Jiefuruitong. With the entry of more companies, the competition in the mobile payment market will become more intense in the future. 
To learn more about the third-party payment market, please pay attention to the official WeChat account of Analysys or call the customer service 8610-64666565/+86 13810406718. 
 
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