Online Payment and e-Commerce in China

Table of Contents

1. Executive Summary

2. Key Factors Shaping the Development of e-Commerce in China

• 2.1 Internet Users: 298 million
• 2.2 Taobao and the Dominance of the Alibaba Group
• 2.3 A Late Start to Electronic Payments
• 2.4 Bankcards Issued: 1.8 billion
• 2.5 Credit Card Use Remains Low; POS Terminals Limited
• 2.6 Bankcard purchases account for 26% of consumer spending
• 2.7 Consumers still predominantly paying with cash

3. Market Survey: General Company Info

• 3.1 Methodology
• 3.2 Online Merchants by Sector
  • 3.2.1 Online Marketplaces
  • 3.2.2 Consumer Electronics
  • 3.2.3 Books, DVDs, and CDs
  • 3.2.4 Fashion Items: Clothing, Cosmetics, and Jewelry
  • 3.2.5 Software, Virtual Items, and Digital Downloads
  • 3.2.6 Ticket Vendors
  • 3.2.7 Baby Products & Home Furnishings
  • 3.2.8 Grocery, Flower, and Gift Delivery
• 3.3 Online Merchant Breakdown by Business Type
• 3.4 Online Merchant Headquarter Locations
• 3.5 Sales Channels Used by Online Merchants in China

4. Market Survey: Payment Channels Used by Online Merchants in China

• 4.1 Online Payment
• 4.2 Cash-on-Delivery
• 4.3 Cash Pickup
• 4.4 Bank Transfer
• 4.5 Postal Remittance
• 4.6 Prepaid Cards
• 4.7 International Payments

5. Market Survey: International Coverage & Language Support

• 5.1 International Markets Served by Chinese Online Merchants
  • 5.1.1 Geographical Regions Served by Chinese Online Merchants
  • 5.1.2 Future International Expansion of Chinese Online Merchants
• 5.2 Languages Supported by Online Merchants in China
  • 5.2.1 Languages Supported by Online Merchants in China
  • 5.2.2 Plans for Future Language Support by Chinese Online Merchants

6. Market Survey: Merchant Satisfaction with Online Payment Providers in China

• 6.1 Payment Provider Recognition
• 6.2 Sales Reach
• 6.3 Payment Provider Partnerships
• 6.4 Current Partnerships
• 6.5 Satisfaction

7. Leading Online Payment Provider Profiles

• 7.1 Alipay
• 7.2 Tenpay
• 7.3 99Bill
• 7.4 YeePay
• 7.5 ChinaBank Payment
• 7.6 IPS
• 7.7 PayEase
• 7.8 Cncard

8. Market Size, Market Shares, and Forecasts

• 8.1 e-Commerce Market Share Breakdown
• 8.2 China B2C Market Share Breakdown
• 8.3 Chinese Online Merchant Overseas Market
• 8.4 China B2C Market Forecast

9. Conclusions and Future Trends

• 9.1 Payment Providers Jockeying for Positions
  • 9.1.1 China' s Leading Payment Providers
  • 9.1.2 Alipay - A Partnership Out of Necessity
  • 9.1.3 Price Wars and Decreasing Transaction Fees
• 9.2 Growing Pains for a Market Still in its Infancy
  • 9.2.1 A Market in its Infancy
  • 9.2.2 Reliance on Cash-based Systems - a Phase not a Certitude
  • 9.2.3 A Domestic Market yet Untapped; Overseas Markets a Low Priority
• 9.3 Opportunities for Foreign Players
  • 9.3.1 Provide International Payment Processing Services for Chinese Merchants
  • 9.3.2 Invest in and Share Expertise with Chinese Payment Providers
  • 9.3.3 Assist Chinese Payment Providers to Expand Overseas

List of Figures

• Figure 1: China Online B2C Market, 2001-2009 (RMB M)
• Figure 2: Internet Users in China, 2001-2008 (M)
• Figure 3: China Online User Income Distribution, 2008 (RMB per Month)
• Figure 4: Taobao Market Share of e-Commerce Market in China (%)
• Figure 5: China' s Late Start: Banking and e-Commerce Milestones 1950-2008
• Figure 6: Bankcards in Circulation in China, 2004-2008E (M)
• Figure 7: Credit Cards in Circulation in China, 2006-2008 (M)
• Figure 8: Online Merchants Interviewed by Sector
• Figure 9: Online Merchant Breakdown by Business Type (%)
• Figure 10: Online Merchant Breakdown by Manufacturing of Products (%)
• Figure 11: Online Merchant Headquarter Locations
• Figure 12: Sales Channels Used by Online Merchants in China (%)
• Figure 13: Online Sales Revenue Share by Sector (%)
• Figure 14: Payment Options Offered by Online Merchants in China (%)
• Figure 15: Average Transaction Volume by Payment Channel (%)
• Figure 16: Transaction Volume Breakdown by Payment Channel (%)
• Figure 17: Average Online Payment Transaction Volume by Sector (%)
• Figure 18: Online Payment Transaction Volume Breakdown by Sector (%)
• Figure 19: Average Cash-on-Delivery Transaction Volume by Sector (%)
• Figure 20: Cash-on-Delivery Transaction Volume Breakdown by Sector (%)
• Figure 21: Average Cash Pickup Transaction Volume by Sector (%)
• Figure 22: Cash Pickup Transaction Volume Breakdown by Sector (%)
• Figure 23: Average Bank Transfer Transaction Volume by Sector (%)
• Figure 24: Bank Transfer Transaction Volume Breakdown by Sector (%)
• Figure 25: Average Postal Remittance Transaction Volume by Sector (%)
• Figure 26: Postal Remittance Transaction Volume Breakdown by Sector (%)
• Figure 27: China Mobile Prepaid Card
• Figure 28: Average Prepaid Card Transaction Volume by Sector (%)
• Figure 29: Prepaid Card Transaction Volume Breakdown by Sector (%)
• Figure 30: Payment Options Offered by Online Merchants to Overseas Clients (%)
• Figure 31: Average International Payment Transaction Volume by Sector (%)
• Figure 32: International Markets Served by Chinese Online Merchants (%)
• Figure 33: Future International Expansion Plans by Chinese Online Merchants (%)
• Figure 34: Languages Supported by Online Merchants in China
• Figure 35: Plans for Future Language Support by Chinese Online Merchants
• Figure 36: Payment Provider Recognition (%)
• Figure 37: Online Merchants Contacted by Payment Provider Sales Teams (%)
• Figure 38: Number of Payment Providers Used by Online Merchants (%)
• Figure 39: Payment Provider Merchant Partners (%)
• Figure 40: Payment Provider Average Satisfaction Score
• Figure 41: Payment Provider Satisfaction Breakdown
• Figure 42: Past Partnerships with Payment Providers (%)
• Figure 43: Alipay Recognition and Partnerships
• Figure 44: Alipay Sales Reach
• Figure 45: Alipay Merchant Satisfaction
• Figure 46: Tenpay Recognition and Partnerships
• Figure 47: Tenpay Sales Reach
• Figure 48: Tenpay Merchant Satisfaction
• Figure 49: 99Bill Recognition and Partnerships
• Figure 50: 99Bill Sales Reach
• Figure 51: 99Bill Merchant Satisfaction
• Figure 52: YeePay Recognition and Partnerships
• Figure 53: YeePay Sales Reach
• Figure 54: YeePay Merchant Satisfaction
• Figure 55: ChinaBank Payment Recognition and Partnerships
• Figure 56: ChinaBank Payment Sales Reach
• Figure 57: ChinaBank Payment Merchant Satisfaction
• Figure 58: IPS Recognition and Partnerships
• Figure 59: IPS Sales Reach
• Figure 60: IPS Merchant Satisfaction
• Figure 61: PayEase Recognition and Partnerships
• Figure 62: PayEase Sales Reach
• Figure 63: PayEase Merchant Satisfaction
• Figure 64: CnCard Recognition and Partnerships
• Figure 65: CnCard Sales Reach
• Figure 66: CnCard Merchant Satisfaction
• Figure 67: China e-Commerce Market Share Breakdown (%)
• Figure 68: China Online B2C Market Share Breakdown (%)
• Figure 69: Chinese Online B2C Overseas Market Size by Sector, (%)
• Figure 70: China Online B2C Market Size Forecast, 2005-2012 (RMB M)
• Figure 71: Online Merchants Interviewed by Sector
• Figure 72: Payment Options Offered
• Figure 73: Payment Options Used