Abstract
Research Object
Third-party payment as used in the 2009 Annual Report on China Third-Party
Payment Market refers to the action by which institutions or individuals use
communication network-based electronic equipment to indirectly issue
transaction instructions to financial institutions in the banking industry via
non-banking financial institutions to transfer funds. By way of issuance of
electronic payment instructions, third-party electronic payment services are
divided into online payment, telephone payment, mobile payment and payment by
other electronic terminals. This Report will limit its research scope to the
first three types of services. Among them, online payment refers to the mode
of Internet-based payment, while telephone payment refers to that users use
fixed phone to make payment through fixed lines and mobile payment refers to
that users use mobile communication equipment to make payment through the
wireless network. Terminal equipment may be mobile phone, PAS or PDA.
The companies researched in this report mainly include AliPay, TenPay, PayPal,
99Bill and YeePay, which are leading third-party electronic payment companies
in China and the world.
Main Conclusions
1. Third-party Electronic Payment Transactions Maintained High Growth
Despite a slowdown in economic growth in 2008, third-party payment
transactions in China continued to show a momentum of accelerating growth.
During the year, total transaction value reached 281.3 billion Yuan, up 178.8%
year-on-year. The number of registered third-party electronic payment users
stood at 107.30 million. In addition to continuously rising personal users,
the growth of enterprise users and the promotion of industry applications have
also become powerful driving forces for the increase in third-party payment
transaction values.
2. Progress in Policy and Regulation System Building Was Slow Currently, a sound legal system has yet to be developed for the market.
The Administrative Measures for Payment and Liquidation Organizations, the
focus of attention for many enterprises, has undergone an opinion solicitation
stage in the past three years or so. But, this document has not been
officially released. Various issues, such as entity status, scope of business
and rulings over dispute have yet to be specified. Consequently, in an attempt
to avoid policy risks, some enterprises have greatly narrowed their product
and service scope, while others have operated businesses on the fringes of the
law, leaving risks and hidden dangers behind. Currently, China' s third-party
electronic payment market is still in a stage of fast growth. But, lack of
sound policies, laws and regulations continue to restrict market innovations,
standardization and progress.
3. Dependent Third-Party Payment Services Continued to Get More Market Shares
Currently, there is no significant functional gap between dependent
third-party payment platforms and independent third-party payment platforms.
Moreover, drawing upon their powerful transaction platforms (such as AliPay' s
attachment to Taobao and Alibaba) and user base (for example TenPay has a huge
QQ user group), dependent third-party payment platforms have actually gained
certain advantages in terms of transaction volume and user number growth. They
look set to expand their leading advantages. In 2008, dependent third-party
payment platforms accounted for 73.4% of the transaction value in the market.
In 2011, the figure is expected to reach 77.2%.
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