When mobile payments or mobile wallet is considered, only 40% of the current population in China is using smartphones to pay. This suggests that scope of development of this technology in the country is huge.
One of the major reason for low penetration of mobile wallet in the country is lack of connected users or internet unavailability across many regions.
- Definition / Scope
- Market Overview
- Top Market Opportunities
- Market Trends
- Industry Challenges
- Technology Trends
- Regulatory Trends
- Other Key Market Trends
- Market Size and Forecast
- Market Outlook
- Technology Roadmap
- Competitive Landscape
- Competitive Factors
- Key Market Players
- Strategic Conclusion
Definition / Scope
Mobile Wallet is also known as transactions which are processed via means of smartphone applications. The payment is usually made through smartphone with usage of internet and also physically via POS payments through NFC, QR code scanning or some wireless technology.
Some of the popular payment providers around the world include, Apple pay, Google Pay and Samsung Pay. In this case, payment is made via contactless interaction of smartphone app with apt payment terminal owned by the merchant.
The payment is made either by loading funds into the wallet through e or m-commerce or simply through the digitally stored debit/credit card in the wallet.
Mobile wallet excludes the payment transactions made with swiping physical debit/credit cards in POS systems or contactless terminals.
China has adopted digital wallets unlike other countries. China has leapfrogged in case of mobile wallets as the country people are smartphone lovers and have continued to adopt digital wallets. As a result, mobile wallet in China account almost 54% of total payment market in the country and continues to grow at CAGR of 34% till 2021.
China also ranks as number one in mobile commerce and also in payments made via smartphone. The method is most dominating in the e-commerce area in the country. Almost 75% of the e-commerce transactions are met via mobile device generating $873.3 billion sales annually.
The growth is also expected at a rapid pace at rate of almost 28.8% till 2021. By that time, the industry is expected to value at $2.4 trillion.
Although, the penetration of smartphone stands at only 56% in China, the ambition of m-commerce or m-wallet is huge and there is great potential for growth in the market.