Wednesday, June 22, 2016

Digitimes Research: NFC-based mobile payments will struggle to replace 3rd-party e-payments in China

Digitimes Research: NFC-based mobile payments will struggle to replace 3rd-party e-payments in China

Benson Wu, DIGITIMES Research, Taipei [Wednesday 22 June 2016]

While the launch of Apple Pay services in the China market on February 18, 2016 has stimulated use of NFC-based mobile payment services, NFC services will find it difficult to replace third-party e-payments, such as Baidu Wallet, Alipay, TenPay and YeePay, mainly because NFC-enabled POS devices are not deployed widely enough and only high-end and some mid-range smartphone models support NFC, according to Digitimes Research.

The total transaction value of NFC- and 2D barcode-based mobile payment services in the China market in 2015 reached CNY108.2 trillion (US$17.22 trillion), hiking 379% on year, Digitimes Research indicated. However, providers of third-party e-payment services offered subsidies to maintain their user bases and market shares.

For NFC-based mobile payment services, banks tend to play a role of increased importance, and in contrast mobile telecom carriers are losing influence in the market. In addition, growing use of NFC-based mobile payment services is expected to result in a reshuffle of market shares among smartphone vendors.


Source: Digitimes Research: NFC-based mobile payments will struggle to replace 3rd-party e-payments in China

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