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Analysys: China’s Third-party Mobile Payment Size Hit RMB9,041.9 Billion in 2016 Q3
In 2016 Q3, China’s third-party mobile payment market reached RMB9,041.9 billion in size, a jump of 20.5% quarter on quarter, shows the Quarterly Monitoring Report on China’s Mobile Payment Market 2016 Q3 published by Analysys.
  • 15 Feb, 2017
  • Finance
  • 8558
Analysys Insight:
In 2016 Q3, China’s third-party mobile payment market reached RMB9,041.9 billion in size, a jump of 20.5% quarter on quarter, shows the Quarterly Monitoring Report on China’s Mobile Payment Market 2016 Q3 published by Analysys.
In Q3, the mobile payment landscape experienced certain change, and the rankings of the top three players didn’t change but their shares further changed. In Q3, the revenue of Alibaba Group grew 55%, the revenue from the core e-commerce business rose 41%, the mobile end contributed 78% of the total revenue of the group, and the transaction volume of the Koubei.com platform jumped 55% quarter on quarter. In Q3, the total mobile payment volume of Alipay further grew and ranked the first with a market share of 50.42%, backed by the stable market share of Alibaba Group, deepening of integrated financial services of Alipay and participation of totally 40 million in the promotion events in the quarter.  
In Q3, Tenpay strengthened mobile payment as usual, and more than 100 million users participated in the cash-free event on the Wechat platform. Alipay further narrowed the gap on the bellwether Alipay, and increased the market share to 38.12%, ranking the second in the market, benefiting from continuous rapid growth of transaction volumes based on social scenarios like money gift and transfer, and also benefiting from the drive of the mobile payment from third-party merchants like e-commerce, group shopping and travel. Overall, Alipay and Tenpay seized a total market share of 88.54% and took the absolute dominant position, and rapid growth of Tenpay also squeezed the shares of other players to some extent.
Lakala.com started implementing the diversification strategy on the mobile platform. The mobile phone collection application, smart POS, Lakala band and other products started making a difference, and Lakala.com also continuously enriched wealth management products targeting C-end groups. Finally, Lakala ranked the third with a market share of 3.32%.
In Q3, LianLian Pay accelerated the pace to established the presence in the O2O area and launched the bank + POS product and supporting solution. Moreover, the cooperation with some used card platforms also backed steady growth of mobile payment size of the payment institution.
In Q3, 1qianbao.com and Wanlitong.com, a credit platform under Ping An Group, announced a formal merger, and original applications of Wanlitong.com were embedded into the application of 1qianbao.com in an all-round manner to build the uniform “1qianbao.com" platform. After merger, 1qianbao.com integrates five functional modules, including payment, life, wealth management, shopping and credit, which cover rich online/offline payment scenarios, and have driven the growth of user base and transaction volume of computer users through the “credit + payment” integrated services. 
In Q3, Yeepay continued taking root in the aviation industry, hosted the member day promotion and two-traveler discount together with China Southern Airlines and China Eastern Airlines, and achieved an obvious growth rate in the payment size relating to air tickets. Besides, Yeepay launched the Yeepay Code Pay, a mobile payment product targeting the insurance industry, which also drove the transaction size expansion at the mobile end.                                                                                                                                                                                                                                                                                                                                                                                                                                           
Analysys thinks that in Q3, payment institutions obviously launched more promotion events, which, together with more product innovation activities, stimulated mobile payment to embrace a new round of growth.
Besides, during the quarter, the central bank issued the exposure draft of the Standard for Barcode Payment Business, which relaxes the barcode payment business that was once forbidden for the safety reason. Analysys thinks that while China UnionPay and banks are launching QR code payment products, different parties will strive for  offline payment scenarios more violently.
Tencent ranked the first with total active users of up to 833 million, and realized robust growth of active users of Wechat Pay and QQ Wallet. High influence the activity of payment to some extent. Moreover, the continuous expansion of online and offline payment scenarios made Wechat Pay the first choice of most users.
In Q3, Alipay declared to collect a handling fee on cash drawing, which further stimulated the transfer and consumption behaviors of its users. Besides, in August, Alipay won the payment license granted by the Hong Kong Monetary Authority, which has paved the way for Alipay to further develop the Hong Kong market and the cross-border market. Alipay recorded 402 million active users during the quarter, benefiting from the coverage width and exclusiveness of the e-commerce channel, enrichment of offline scenarios and continuous upgrade of insurance, wealth management, consumption and other financial products.
During the quarter, Baifubao extended the good performance in the previous quarter. In August, it launched the visa service, and in September, it launched the foreign currency conversion in small amount, thereby becoming the first third-party payment institution that can engage in the conversion business in China. After successfully landing in Thailand in Q2, Baifubao attacked the overseas payment market without cease and further enriched diverse scenarios. Besides, Baifubao kept enriching wealth management and credit functions and launched the “Umoney.baidu.com”, a new vertical installments service targeting home decoration, house renting and other industries. Baifubao recorded 58,254,000 active users and ranked the third among the kind, benefiting from the measures to develop the overseas market and launch the installments service.
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