Maverick China Third-Party Payment Profiles: 99Bill - Hot Out of the Gates, but Sustainable?

Table of Contents

1 Industry Overview: Key Factors Shaping Third-Party Payments in China

• 1.1 Continued preference for cash payments, but bank card payments rising
• 1.2 Credit card use remains low; debit cards widespread
• 1.3 Limited coverage of non-cash payment services
• 1.4 China UnionPay' s bank card monopoly
• 1.5 Quasi-online payment systems an interim solution
• 1.6 Two ISPs, 162 million Internet users
• 1.7 Two mobile operators, 500 million subscribers
• 1.8 Contactless smartcard use increasing but largely limited to buses and subways
• 1.9 Government regulations and the "national interest"

2 99Bill - Hot Out of the Gates, but Sustainable?

• 2.1 Company Overview
  • 2.1.1 Ownership
  • 2.1.2 Organizational Structure
  • 2.1.3 Management Team
• 2.2 Business Performance
  • 2.2.1 Users
  • 2.2.2 Financial Performance
• 2.3 Services and Channels
  • 2.3.1 Online Payment
  • 2.3.2 Business Model and Fee Structure
• 2.4 Markets and Coverage
  • 2.4.1 User Demographics
• 2.5 Marketing and Branding
• 2.6 Partners
  • 2.6.1 Bank Partners
  • 2.6.2 Merchant Partners
  • 2.6.3 Technology Partners
• 2.7 Competitive Analysis
  • 2.7.1 Strengths
  • 2.7.2 Weaknesses
• 2.8 Outlook

List of Figures

• Figure 1: Credit cards issued in China and in the US (M)
• Figure 2: Internet Users in China, 2001-2006 (M)
• Figure 3: Mobile Subscribers in China, 2002-2010F (M)
• Figure 4: China government groups involved in third-party payment regulation
• Figure 5: 99Bill Registered Users, 2005-2007 (M)
• Figure 6: 99Bill Quarterly Transaction Volume, 3Q 2006-3Q 2007 (RMB M)
• Figure 7: 99Bill Direct Debit Operation Model
• Figure 8: 99Bill Payment Methods
• Figure 9: 99Bill User Fee Structure
• Figure 10: 99Bill Merchant Fee Structure
• Figure 11: 99Bill Foreign Currency Payment Deposits
• Figure 12: 99Bill Security Device
• Figure 13: 99Bill Payment Service Coverage by Channel
• Figure 14: 99Bill Logo
• Figure 15: 99Bill Bank Partners
• Figure 16: Select 99Bill Merchant Partners