Current Status and Future Development of Chinese Mobile Payment

The first mobile payment service in China was launched in 2002 as a collaborative venture between a mobile communications operator, commercial banks, and a bank card authentication service provider. By the end of 2007, the mobile payments services available in China included payment by mobile phone, micro-payments, and personal bank account management. Despite increased awareness of these services and despite the changes in China' s consumer behavior, consumer take-up of mobile payments services has been relatively slow. Even so, by the end of 2007 China' s mobile payments value chain had taken shape, which comprised financial institutions, mobile payments platform providers, authentication agencies, and mobile phone operators. This report will examine the development and current state of mobile payments in China.