Maverick China Third-Party Payment Profiles: Tenpay- Riding the QQ Freight Train

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, 522 million subscribers
• 1.8 Contactless smartcard use increasing but largely limited to buses and subways
• 1.9 Government regulations and the "national interest"

2. Tenpay - Riding the QQ Freight Train

• 2.1 Company Overview
  • 2.1.1 Ownership
  • 2.1.2 Organizational Structure
  • 2.1.3 Management Team
• 2.2 Operation Model and Business Performance
  • 2.2.1 Financial Performance
  • 2.2.2 Users
• 2.3 Services and Coverage
• 2.4 Markets and Channels
  • 2.4.1 User Demographics
  • 2.4.2 Channels
• 2.5 Marketing and Branding
• 2.6 Partnerships
  • 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

• 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: The evolution of Tencent' s services
• Figure 6: Tencent Organizational Structure
• Figure 7: Tenpay' s Operation Model
• Figure 8: Tenpay Transaction Volume Breakdown (%)
• Figure 9: QQ Registered Users, 1Q 2006- 3Q 2007, (M)
• Figure 10: Tenpay Registered Users, 1Q 2006- 3Q 2007, (M)
• Figure 11: Tenpay Users as a Percentage of QQ Active Users, 2006-2007 (%)
• Figure 12: Q Coin Purchase Breakdown (%)
• Figure 13: QQ games and services paid for by Q Coins
• Figure 14: Tenpay' s Co-branded Services
• Figure 15: Tenpay Logo
• Figure 16: Tenpay Bank Partners
• Figure 17: Tenpay Merchant Partners