Mobile Payment in China

Bricks & Clicks Going Mobile?

Publication Date	August 2006
Publisher	Maverick China Research
Product Type	Report
Pages	58
ISBN Number	not applicable
Product Code	MAV00001

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Summary

Mobile payment - also known as m-payment, mobile wallet, or cell phone payment - refers to any type of payment transaction initiated through the use of a mobile phone. This report offers the most up-to-date and comprehensive study available on China's emerging mobile payment sector. Utilizing on-the-ground research and first-hand interviews with m-payment executives and experts, we examine competing service models, profile leading Chinese m-payment companies, and dissect the complex set of factors at play in the sector's development. In addition, this report identifies key investment opportunities and forecasts m-payment growth in China through 2010. Written for an international audience, this report is detailed enough for industry insiders while remaining clear and accessible to newcomers.

Sectors Covered

Mobile payment in China represents a convergence of multiple sectors that until recently have operated independently. This report provides full coverage of all key market players and examines the complex interplay between them:

Mobile operators
Wireless value-added service (WVAS) providers
M-payment service providers
Contactless smartcard vendors
Banks
Merchants
The Chinese government
Mobile users

Company Profiles

At this early stage of development, multiple business models compete for dominance in China's m-payment sector. Some of the greatest innovation is coming from several third-party payment companies, which bring together mobile operators, banks, merchants, and users into a single payment platform. This report contains in-depth profiles of China's leading m-payment service providers, including:

Union Mobile Pay (UMPay)
Smartpay Jieyin
Guangzhou Huanxin
Yeepay
NationM
China M-World

The report also profiles other companies playing critical roles in the sector, including China Mobile, China Unicom, China UnionPay, Bank of China, China Minsheng Banking Corp, Philips Semiconductors, Watchdata, and many others.

Key Questions Answered

Which companies are leading the way in China's m-payment sector?
What are the strengths and weaknesses of competing m-payment business models in China?
Which specific services and products will drive future m-payment growth in China?
How likely are Chinese consumers to adopt m-payment services?

Content

Executive Summary
1 An Emerging Industry Worldwide
- 1.1 Definitions and report scope
- 1.2 M-payment technology platforms
- 1.3 Moderate success in Japan, Korea, and the Philippines
- 1.4 User demand remains weak in Europe and North America
- 1.5 China: Still under construction
2 Key Factors Shaping M-Payment Growth in China
- 2.1 The convergence of mobile communications and electronic payment
- 2.2 Two mobile operators; 400 million users
- 2.3 Continued preference for cash payments
- 2.4 Credit card use remains low
- 2.5 Limited geographic coverage of new services
- 2.6 Government regulations and the ""national interest""
- 2.7 China UnionPay's bank card network
3 Competing M-Payment Models in China
- 3.1 The mobile operator WVAS model
  - 3.1.1 China Mobile's Monternet platform
  - 3.1.2 China Unicom's Uni-info platform
  - 3.1.3 Services and price range
  - 3.1.4 Strengths and weaknesses
  - 3.1.5 Prospects for future development
- 3.2 The m-payment service provider model
  - 3.2.1 Services and price range
  - 3.2.2 Strengths and weaknesses
  - 3.2.3 Prospects for future development
- 3.3 The contactless smartcard model
  - 3.3.1 Services and price range
  - 3.3.2 Strengths and weaknesses
  - 3.3.3 Prospects for future development
- 3.4 Competitive analysis of competing models
4 M-Payment Service Provider Company Profiles
- 4.1 Company profile: Union Mobile Pay
  - 4.1.1 Company overview
  - 4.1.2 Current services
  - 4.1.3 Current status and prospects for future development
- 4.2 Company profile: Smartpay Jieyin
  - 4.2.1 Company overview
  - 4.2.2 Current services
  - 4.2.3 Current status and prospects for future development
- 4.3 Company profile: Guangzhou Huanxin
  - 4.3.1 Company overview
  - 4.3.2 Current services
  - 4.3.3 Current status and prospects for future development
- 4.4 Company profile: Yeepay
  - 4.4.1 Company overview
  - 4.4.2 Current services
  - 4.4.3 Current status and prospects for future development
- 4.5 Company profile: NationM
  - 4.5.1 Company overview
  - 4.5.2 Current services
  - 4.5.3 Current status and prospects for future development
- 4.6 Company profile: China M-World
  - 4.6.1 Company overview
  - 4.6.2 Current services
  - 4.6.3 Current status and prospects for future development
5 Maverick Conclusions and Forecasts
- 5.1 Eight key trends affecting the future growth of China's m-payment market
- 5.2 Opportunities for foreign companies
- 5.3 Five-year forecasts
  - 5.3.1 Mobile user forecast
  - 5.3.2 M-payment user forecast
  - 5.3.3 M-payment revenue forecast
6 Appendices
- 6.1 Abbreviations and definitions
- 6.2 Global m-payment industry groups
List of Figures
- Figure 1: China government groups involved in m-payment regulation
- Figure 2: Comparison of China's three leading m-payment models
- Figure 3: The mobile operator WVAS model
- Figure 4: The m-payment service provider model
- Figure 5: Major Chinese banks and their m-payment SP partners
- Figure 6: Selected m-payment SP merchant partners by sector
- Figure 7: The contactless smartcard model
- Figure 8: Beijing's ""Yikatong"" contactless smartcard for public transit
- Figure 9: Comparison of merchant and user fees for competing m-payment models in China
- Figure 10: User base comparison for leading payment methods (M)
- Figure 11: Typical product price range for competing m-payment models in China
- Figure 12: Typical products sold over competing m-payment models in China
- Figure 13: Overview of China's top six m-payment SPs
- Figure 14: UMPay m-payment services, merchant partners, and coverage areas
- Figure 15: UMPay bank partnerships by area
- Figure 16: Smartpay m-payment services, merchant partners, and coverage areas
- Figure 17: Smartpay bank partnerships by area
- Figure 18: Guangzhou Huanxin m-payment services, merchant partners, and coverage areas
- Figure 19: Yeepay m-payment services, merchant partners, and coverage areas
- Figure 20: NationM's m-payment services, merchant partners, and coverage areas
- Figure 21: China M-World's m-payment services, merchant partners, and coverage areas
- Figure 22: China mobile user forecast, 2006-2010 (M)
- Figure 23: China m-payment user penetration rate, 2006-2010 (%)
- Figure 24: China m-payment user forecast, 2006-2010 (M)
- Figure 25: China mobile top-up revenue forecast, 2006-2010 (M)