China’s mobile payment market is set to rise 142% annually to 2020, on the back on an increase in smartphone users and continuous technological innovation such as ‘Internet +.’
According to the ‘Global and China Mobile Payment Industry Report, 2016-2020’ released by Research and Markets, transaction volume for 2015 surged by 322.2% to RMB130.18 trillion. Analysts now expect to see an AAGR of 142% over the next couple years to hit RMB13,776.5 trillion in 2020.
Mobile banking held the largest transaction size, accounting for 83.1% in 2015 and estimated to decline to around 80.4% in 2020.
Faced with new challenges from payment service providers, banks are expected to strengthen competitiveness by introducing differentiated services and products, such as jointly-issued cards or support for large payments.
Third-party mobile payments totalled RMB21.96 trillion in 2015, an upsurge of 167% from a year ago, 90% of the market captained by Alipay and Tenpay.
“Supported by business data, third-party payment companies will continue to expand service functions, finally forming a development pattern of O2O (Online to Offline) services,” said report authors.
SEE ALSO: 5 retail trends in mobile and social marketing
Meanwhile, the mobile payment market underwent a speedy reshuffle in 2015, with mobile phone vendors and traditional enterprises stepping up their presence in 2016, further intensifying market competition.
Finally, Cyber security was also addressed by the report for China’s m-payment future.
“With higher requirements on payment security, other technologies like NFC, HCE, Token and biological recognition will mature gradually,” concluded the report.