Third-Party Payment in China: YeePay

Back to Basics with Telephone Payment

Publication Date	October 2007
Publisher	Maverick China Research
Product Type	Report
Pages	23
ISBN Number	not applicable
Product Code	MAV00016

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Summary

In a market where most other third-party payment companies focus on online or mobile-based platforms, YeePay has instead focused on telephone payments. Yeepay management believes that going ""back to the basics"" with telephone payments will better encourage Chinese users to acquire the habit to make payments through third-party payment companies rather than with cash. Yeepay also offers online payment and mobile payment services which are additional payment channels with which the company will rely on for future growth.

This report investigates Yeepay's three payment channels, as well as its services, investors and partners, and prospects for growth in China's payment industry.

Content

1 Industry Overview: Key Factors Shaping Third-Party Payments in China 1
- 1.1 Continued preference for cash payments, but bank card payments rising 1
- 1.2 Credit card use remains low; debit cards widespread 2
- 1.3 Limited coverage of non-cash payment services 3
- 1.4 China UnionPay's bank card monopoly 4
- 1.5 Quasi-online payment systems an interim solution 4
- 1.6 Two ISPs, 162 million Internet users 5
- 1.7 Two mobile operators, 500 million subscribers 6
- 1.8 Contactless smartcard use increasing but largely limited to buses and subways 7
- 1.9 Government regulations and the "national interest" 7
2 YeePay - Back to the Basics With Telephone Payments 10
- 2.1 Company Overview 10
  - 2.1.1 Ownership 10
  - 2.1.2 Organizational Structure 10
  - 2.1.3 Management Team 11
- 2.2 Business Performance 12
  - 2.2.1 Financial Performance 12
  - 2.2.2 Users 12
- 2.3 Services and Channels 13
  - 2.3.1 Telephone Payment 13
  - 2.3.2 Online Payment 14
  - 2.3.3 Mobile Payment 15
  - 2.3.4 Business and Operation Model 16
- 2.4 Markets and User Demographics 17
- 2.5 Marketing and Branding 18
- 2.6 Partnerships 19
  - 2.6.1 Bank Partners 19
  - 2.6.2 Merchant Partners 20
  - 2.6.3 Technology Partners 21
- 2.7 Competitive Analysis 21
  - 2.7.1 Strengths 21
  - 2.7.2 Weaknesses 22
- 2.8 Outlook 22
List of Figures
- Figure 1: Credit cards issued in China and in the US (M) 3
- Figure 2: Internet Users in China, 2001-2006 (M) 5
- Figure 3: Mobile Subscribers in China, 2002-2010F (M) 6
- Figure 4: China government groups involved in third-party payment regulation 9
- Figure 5: YeePay Registered Users, 2006-2007F (M) 12
- Figure 6: YeePay Telephone Payment Partners 13
- Figure 7: YeePay Key Partners and Online Services 15
- Figure 8: YeePay Operation Model 16
- Figure 9: YeePay Fee Structure 17
- Figure 10: YeePay Logo 18
- Figure 11: YeePay Bank Partners 19
- Figure 12: YeePay Key Merchant Partners 21