However, unlike the payment markets in developed Asian countries such as Australia, China’s is still at the very beginning of its development. Although Australia’s electronic payments market is on track to grow 10.4% every year from 2004-2009, China’s growth is expected to be over 3 times that. Nearly all forms of payment are expected to experience over 50% growth in transaction value, with Internet payments increasing as much as 150% from 2006-2007. During the next few years, across the country, payment systems will be implemented to meet this rising demand, creating a huge opportunity for technology and outsourced service providers. However, for companies entering the market to be successful, they must have a solid understanding of the market. Key to this is knowing where the payments market has been, where it is and where it’s going.

kapronasia and The Financial Services Club are pleased to announce the upcoming availability of two research reports focused on payments in China:

• 2007 Report on China’s Wholesale Payments
• 2007 Report on China’s Retail Payments

Leveraging both qualitative and quantitative data obtained through primary and secondary research, these report give the reader a thorough understanding of the trends through the past few years that have brought payments in China to where they are today. In addition, each report provides unique insight into the technologies, companies, people and trends that are shaping the payments industry - critical information for technology vendors seeking to not just enter but grow and dominate their markets.

Report Overviews:

2007 Report on China’s Wholesale Payments

The Wholesale payments report starts in the mid-80’s with the birth of the modern Chinese banking system. We examine how at that time disparities by geography, business structure, and even products made any sort of wholesale payments nearly impossible.

After looking at the beginnings of the payments market in China, we take a look at the changes in the 90’s leading up to the 2001 entry into the WTO, which is arguably the biggest reform to the Chinese banking system ever. We see how a tighter international integration has lead to increased cross border monetary flows and how increased competition from international banks is changing the way domestic banks operate. Finally we discuss how all of these developments are relevant to companies in the payments space and what they will need to do to take advantage of the opportunities. 

2007 Report on China’s Retail Payments 

The Retail Payments report will take a step back in time and look how although the financial reforms started off by Deng Xiaoping in the late 1970s dramatically changed the Chinese consumer’s mind set and spending habits, we see how cash is still the payment method of choice and the reasons why that is the case, but also take a look at how new businesses are helping internet and mobile payments to finally start taking hold. Finally we’ll look at how consumer trends will affect the future of payments and some strategies that companies should keep in mind as they approach the market.

We will cover all major types of retail payments in this report, including those currently in widespread use and recently introduced - as well as some just over the horizon.

Types of payments covered in this report: 

• Cash
• Checks
• Credit Cards
• ACH/EFT
• ATM
• Online
• Mobile
• Point of Sale
• Stored Value