Sorry for interrupting, this website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Learn more
Accept & Close

Payment Preferences - China - August 2017

“The usage rate of mobile payments was only 1 percentage point higher than that of credit cards in 2015. After just one year, transaction values via mobile payments has already doubled that via credit cards. Even cash has become the second most used payment method. High earners in tier two to three cities deserve more attention as they have shown the strongest willingness to move towards cashless.”
– Aaron Guo, Senior Analyst, China

This Report looks at the following areas:

  • Is China leading the cashless society trend?
  • Is WeChat Wallet finally about to replace Alipay?
  • What is the payment preference of high income groups?

This Report tracks the changes of payment preferences of surveyed Chinese consumers over the past year, and highlights a missed opportunity in tier two and three cities through analysing the behaviours and attitudes towards mobile and other payment methods of surveyed consumers.

This Report also examines innovative moves by both the government and companies in the non-cash payment area, eg staff-free stores and digital currencies and how these could change the macro and micro environment of non-cash payments.

This Report covers the following payment methods:

  • Cash
  • Cards – including debit cards and credit cards, with or without chips and pay-wave functions
  • Online payments – via a third-party payment tool (eg Alipay) using a PC or a laptop
  • Mobile payments – via a third-party payment tool (eg Alipay) using a smartphone or tablet
  • NFC payments – using Apple Pay or Samsung Pay
  • Prepaid cards.

What you get

What's included

Why buy from us?

Succeed

Our reports will provide you with market data, consumer research and competitive intelligence to succeed in your market.

Instant Access

Buy now and you'll have instant access to the information you need to make the right decisions.

Opportunities

Find out what's next in the markets that matter to you: where opportunities lie and what challenges you will face.

Trusted

A business Superbrand, Mintel is a source you can trust. We have been defining and refining the Market Intelligence mix since 1972.

Table of contents

  1. Overview

    • What you need to know
      • Covered in this report
          • Figure 1: Definition of different monthly household income groups, by city tier, November 2016
      • Executive Summary

          • The market
            • Figure 2: Share of third-party online and mobile payment among total market, China, 2012-17 (est)
            • Figure 3: Best- and worst-case forecast of total payment market value, China, 2012-22
          • Companies and brands
            • Figure 4: Third-party mobile payment market share, 2014-16
          • The consumer
            • Mobile payments are now the top payment method
              • Figure 5: Payment methods used, April 2017 vs May 2016
            • Usage rate: Alipay Wallet usage twice that of WeChat Wallet
              • Figure 6: Last payment method used, April 2017
              • Figure 7: Mobile payment functions carried out on WeChat and Alipay Wallet, April 2017
            • Payment methods driven by habits rather than incentives
              • Figure 8: Drivers of payment selection, April 2017
              • Figure 9: Last payment amount, April 2017
            • Opportunities in lower tier cities
              • Figure 10: Going out with or without cash, by city tier, April 2017
            • What we think
            • Issues and Insights

              • Is China leading the cashless society trend?
                • The facts
                  • The implications
                    • Is WeChat Wallet finally about to replace Alipay?
                      • The facts
                        • The implications
                          • What is the payment preference of high income groups?
                            • The facts
                              • The implications
                                • Figure 11: Payment preferences, by consumer matrix (city tier and monthly household income)
                            • The Market – What You Need to Know

                              • Mobile payments are already twice as large as credit card payment
                                • Habit formed while incentives continue
                                • Market Size and Forecast

                                  • Third-party payments: doubling in size every year
                                    • Figure 12: Total third-party payment and growth rate, China, 2012-16
                                  • Third-party mobile payments double credit card payments in 2016
                                    • Figure 13: Payment amount and growth rate of third-party mobile and credit card payment, China, 2012-16
                                  • Mobile payments to exceed PC online payments in 2017
                                    • Figure 14: Share of third-party online and mobile payments among total market, 2012-17 (est)
                                  • Projected to reach RMB 726 trillion in 2022
                                    • Figure 15: Best- and worst-case forecast of total payment market value, China, 2012-22
                                    • Figure 16: Best- and worst-case forecast of mobile payment market value, China, 2012-22
                                    • Figure 17: Best- and worst-case forecast of online payment market value, China, 2012-22
                                • Market Drivers

                                  • Continuous incentives
                                    • Figure 18: Alipay Wallet ‘bonus money’ campaign
                                  • Female high earners in their 20s most willing to go cashless
                                    • Penetration of smartphones
                                    • Key Players – What You Need to Know

                                      • WeChat Wallet challenging the leading position of Alipay Wallet
                                        • Alipay and WeChat Wallet are competing on different dimensions
                                          • Taking a step further to a cashless society
                                          • Market Share

                                            • Intense rivalry between two mobile payment giants
                                              • Figure 19: Third-party mobile payment market share, 2014-16
                                            • Smaller players struggle to compete
                                              • Top five players remain unchanged in third-party online payments
                                                • Figure 20: Third-party online payment market share, 2014-16
                                            • Competitive Strategies

                                              • Leveraging the power of transaction data
                                                  • Figure 21: Payment analysis of Alipay Wallet
                                                • Expansion abroad by co-operating with overseas payment companies
                                                  • Apple Pay’s co-operation with bank cards
                                                  • Who’s Innovating?

                                                    • PBoC is developing digital currency using blockchain technique
                                                      • Staff-free convenience store
                                                        • Figure 22: Alibaba’s staff-free convenience store, TaoCafe
                                                        • Figure 23: A BingoBox
                                                      • Virtual gifting card
                                                        • Figure 24: A virtual Starbucks gift card that can be sent via WeChat
                                                        • Figure 25: Virtual cinema gift cards on WeChat Wallet
                                                    • The Consumer – What You Need to Know

                                                      • Mobile payments exceeding cash as the top payment method
                                                        • Habit of using mobile payments has been formed
                                                          • Opportunities in lower tier cities
                                                          • Usage of Payment Methods

                                                            • Third-party mobile payments penetrate further
                                                              • Figure 26: Payment methods used, 2017 vs 2016, April 2017
                                                            • Gap between different tier city consumers in card usage
                                                              • Figure 27: Gap between tier 1 and tier 2&3 (as benchmark) consumers on payment methods used, April 2017
                                                            • 10% of people have not used cash in past six months
                                                              • Mobile NFC payment users tend to be high earners
                                                              • Last Payment Method Used

                                                                • Alipay Wallet still dominates
                                                                  • Figure 28: Last payment method used, April 2017
                                                              • Drivers of Payment Selection

                                                                • Habit over incentives
                                                                  • Figure 29: Drivers of payment selection, April 2017
                                                                • Key drivers of different payment methods
                                                                  • Figure 30: Drivers of payment selection, by selected payment method, April 2017
                                                              • Payment Amount

                                                                • Choose payment methods by spending amount
                                                                  • Figure 31: Last payment amount on average, by payment method, April 2017
                                                                  • Figure 32: Last payment amount, by payment method, April 2017
                                                              • WeChat vs Alipay Wallet

                                                                • Different usage occasions
                                                                  • Figure 33: Mobile payment function used on WeChat and Alipay Wallet, April 2017
                                                                • Credit services most important for retaining 25-39s
                                                                  • Alipay enjoys a larger user base in city services and paying utility bills
                                                                  • Attitudes towards Payment Methods

                                                                    • More people in tier two and three cities are going cashless
                                                                      • Figure 34: Going out with or without cash, by city tier, April 2017
                                                                    • …yet there is still space for penetration
                                                                      • Figure 35: Going out with or without cash, by city tier, April 2017
                                                                    • More people prefer pre-paid cards with discounts
                                                                      • Figure 36: Prepaid card preference, April 2017
                                                                    • People want more flexibility when it comes to virtual gifting
                                                                      • Figure 37: Online gifting preference, April 2017
                                                                  • Meet the Mintropolitans

                                                                    • Small gap in using mobile payment between MinTs and Non-MinTs
                                                                      • Figure 38: Gap of payment method used, by MinTs and Non-MinTs (as benchmark), April 2017
                                                                      • Figure 39: Last payment method used, by MinTs and Non-MinTs, April 2017
                                                                    • MinTs welcome next generation payment methods
                                                                      • Figure 40: Attitudes towards future payment methods, by MinTs and Non-MinTs, April 2017
                                                                  • Appendix – Market Size and Forecast

                                                                      • Figure 41: Total market value of third-party payments, 2012-22
                                                                  • Appendix – Market Segmentation

                                                                      • Figure 42: Total market value of third-party online payments, 2012-22
                                                                      • Figure 43: Total market value of third-party mobile payments, 2012-22
                                                                  • Appendix – Methodology and Abbreviations

                                                                    • Methodology
                                                                      • Fan chart forecast
                                                                        • Abbreviations

                                                                        Companies Covered

                                                                        To learn more about the companies covered in this report please contact us.

                                                                        Payment Preferences - China - August 2017

                                                                        US $3,990.00 (Excl.Tax)