China Third-Party Payment Profiles

Content

• 1 Introduction to Online Payment in China
  • 1.1 China's 50-year late start
  • 1.2 Market Potential by Large Numbers
  • 1.3 Nuances and Challenges of Online Payment in China
    • 1.3.1 Consumers' Continued Preference for Cash Payments
    • 1.3.2 Credit Card Use Remains Low, POS Terminals Limited
    • 1.3.3 Online Payment Restrictions for Debit Card Users
    • 1.3.4 Grey Skies for Government Regulations
• 2 The China Online Payment Market Today
  • 2.1 How to Build a Payments Network from Scratch?
    • 2.1.1 Leveraging Cash-based Systems for Online Payments
  • 2.2 Top Online Payment Companies to Look Out For
    • 2.2.1 Alipay
    • 2.2.2 Tenpay
    • 2.2.3 99Bill
    • 2.2.4 IPS
    • 2.2.5 YeePay
  • 2.3 China Online Payment Users: by the numbers
  • 2.4 China Online Payment Merchants: by the numbers
• 3 Opportunities and Challenges for Online Payments in China
  • 3.1 Alipay and Tenpay: They Might be Giants...
  • 3.2 How to Compete with Zero Fees?
  • 3.3 Market Consolidation and Payment Licenses
  • 3.4 New Channels for Online Payment: Mobile Phones
• 4 Appendices
  • 4.1 China Bank Cards Explained
  • 4.2 China Online Payment Company Headquarters
  • 4.3 China Online Payment Provider Bank Partners
  • 4.4 China Online Payment Foreign Credit Card Partners
  • 4.5 Multiple Payment Channels for China Payment Companies
• List of Figures
  • Figure 1: China's Late Start: Banking and e-Commerce Milestones 1950-2008
  • Figure 2: Internet Users in China, 2001-2007 (M)
  • Figure 3: Bank Cards in Circulation in China, 2002-2007 (M)
  • Figure 4: Credit Cards Circulating in China and in the US, 2007 (M)
  • Figure 5: ATMs in China and US, 2005-2007 (per 1 Million People)
  • Figure 6: ICBC Online Payment Password Card
  • Figure 7: China Government Groups Involved in Third-party Payment Regulation
  • Figure 8: Alipay and China Post Cash Remittance Form
  • Table of Contents
• 1 Key Factors Shaping the Development of Online Payment in China1
  • 1.1 Two ISPs, 253 million internet users
  • 1.2 Consumers' continued preference for cash payments
  • 1.3 Cash-on-delivery and quasi-online payment systems an interim solution
  • 1.4 Limited coverage of electronic payment services
  • 1.5 Credit card use remains low; debit cards widespread
  • 1.6 China UnionPay's bank card monopoly
  • 1.7 Introduction to the different types of bank cards in China8
  • 1.8 585 million mobile subscribers; upcoming 3G licenses; operator restructuring
  • 1.9 Government regulations and the national interest
• 2 Alipay - Alibaba's payment arm
  • 2.1 Ownership, management team, investors
    • 2.1.1 Ownership
    • 2.1.2 Organizational structure
    • 2.1.3 Management team
  • 2.2 Operation model and business performance
  • 2.3 Services and coverage21
  • 2.4 Markets and channels
  • 2.5 Marketing and branding26
  • 2.6 Partners (banks, merchants, technology)
    • 2.6.1 Technology27
    • 2.6.2 Banks27
    • 2.6.3 Merchants
  • 2.7 Users figures and profile
  • 2.8 Competitive analysis: strengths and weaknesses
  • 2.9 Outlook
• List of Figures
  • Figure 1: Internet users in China, 2001-2007 (M)
  • Figure 2: Alipay and China Post cash remittance form4
  • Figure 3: China Mobile prepaid card
  • Figure 4: ATMs in China and US 2005-2007, (per 1 million people)6
  • Figure 5: Credit cards circulation in China and in the US, 2007 (M)
  • Figure 6: Bank cards circulation in China 2002-2007 (M)7
  • Figure 7: ICBC online payment password card
  • Figure 8: Different types of bankcards in China
  • Figure 9: Shenzhen Development Bank credit cards
  • Figure 10: Co-branded debit cards: Alipay Dragon Card and Taobao Green Card11
  • Figure 11: Mobile subscribers in China, 2002-2007 (M)
  • Figure 12: China government groups involved in third-party payment regulation13
  • Figure 13: The Alibaba Group - company structure16
  • Figure 14: Alipay's operation model
  • Figure 15: Alipay commissions and fees20
  • Figure 16: Alipay annual transaction volume, 2005 - 2008E (billion RMB)21
  • Figure 17: Alipay's bank partners on Alipay KaTong
  • Figure 18: Alipay KaTong - Alipay and China Construction Bank co-branded debit card
  • Figure 19: Alipay logo26
  • Figure 20: Alipay select bank partnerships
  • Figure 21: Alipay select merchant partnerships28
  • Figure 22: Alipay registered users
  • Figure 23: Alipay and Taobao registered users