According to data from iResearch, market scale of mobile payment in China reaches RMB 48.14 billion by the end of 2011, with a 149.4% year-on-year explosive growth. The market scale is estimated to exceed RMB 200 billion by the end of 2013. iReseach’s data shows that the number of mobile payment users reaches 190 million in 2011. The number of user is estimated to grow to 480 million in 2013. The increase drives the explosive growth of overall user scale in this industry as well as popularizes SMS payment.
iResearch attributes the explosive growth of China mobile payment to the following four reasons:
- According to data from iResearch, growth rate of mobile E-commerce is over 400% in the first three quarters of 2011. Main E-commerce enterprises make greater efforts to promote their mobile Internet products, including mobile shopping applications and browsers. The release of mobile payment applications and the cooperation between payment enterprises and E-commerce enterprises opens the mobile payment channel. Therefore, mobile payment will be used more frequently during mobile shopping.
- New technology accelerates the emergence of new payment methods. With the gradual development of communication technology such as 3G, WIFI, NFC and RFID, and the popularization of mobile terminals (especially smart phones), relevant technology has been extensively applied in the field of mobile payment, making the payment process smoother and easier.
- Users have stronger desires for consumption and higher consumption level, which uplifts their demands for more convenient payment methods.
- After issuing the third-party payment license, the government has gradually implemented relevant regulations. Third-party payment enterprises begin a new round of competition and release different mobile payment products, aiming to occupy more market share.