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Digital Payments in China Surge

By Sarah Chen
1 min read
Digital Payments in China Surge
In this article (5)

China’s digital payment market grew to $8.4 trillion in the last quarter of 2019 and there are signs of still robust momentum in the months following the outbreak.

By transaction volumes, Alipay retained the top rank with 55.1 percent followed by Tencent’s two platforms – WeChatPay and QQ Wallet – at 38.9 percent, according to a report (Mandarin only) by independent research firm iResearch.

The remaining 6 percent where split between 1qianbao (1.4%), JD Pay (0.9%), UMPay (0.6%), 99bill (0.6%), Yeepay (0.5%), China UMS (0.3%), Sunin Pay (0.2%) and others (1.5%).

59.8 trillion yuan ($8.4 trillion) in total digital payment representing a year-on-year increase of 13.4%

Even in the midst of an ongoing coronavirus outbreak, the Chinese digital payment market signaled strength, the report underlined.

Beijing-based grocery startup Meicai attracted 800,000 new users in one week on an online platform that connects farmers with consumers and restaurants. Between March 18 and 22, Alipay registered average daily purchase of nearly 1.1 million cups of milk tea via branding programs.

Questions & Answers

Q.

What was the total value of China's digital payment market in the last quarter of 2019?

A.

The total value of China's digital payment market reached $8.4 trillion in the last quarter of 2019. This figure represented a significant year-on-year increase of 13.4%, demonstrating strong growth in the sector during that period.

Q.

Which digital payment platform held the largest market share by transaction volume?

A.

Alipay retained the top position in the digital payment market by transaction volumes, holding a 55.1% share. Tencent's platforms, WeChatPay and QQ Wallet, collectively followed with 38.9% of the market share.

Q.

How did the digital payment market perform in China following the coronavirus outbreak?

A.

The digital payment market continued to show robust momentum even after the coronavirus outbreak. The report highlighted signs of strength, with some platforms registering significant activity, such as Alipay recording nearly 1.1 million daily milk tea purchases.

Q.

What were the market shares of the smaller digital payment platforms?

A.

The remaining 6% of the market was split among several smaller platforms. 1qianbao had 1.4%, JD Pay 0.9%, UMPay and 99bill each held 0.6%, Yeepay 0.5%, China UMS 0.3%, Sunin Pay 0.2%, with other providers making up 1.5%.

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