China Payments Research

The recent annoucement of the tie-up between GlobalCollect and China UnionPay tie-up could be a game changer for China UnionPay's international business.

This is part one of a two part series concerning China Unionpay's launch of Android Pay. Today we take a look at Android Pay's potential impact on the mobile payments industry. Part two will look at China Unionpay's business strategy within the mobile payments space as it launches an Android based mobile wallet.

99Bill, a Chinese payments company, was just acquired by Baidu for RMB 2 billion. While there was no official confirmation from Baidu yet, the rumors started appearing on November 18. As the deal comes through, it will be yet another instance of a tech company moving into online finance. Alibaba through Alipay and Tencent through Tenpay already have payments licenses and operate successfully in the industry. Only Baidu was the last company of the three technology titans without a considerable traction in online finance. Its Baidu Wallet is still in promotion phase and is yet to gain a user base comparable to that of Alipay or Tenpay wallets.

The recent announcement that there are now 190 million Alipay wallet users has confirmed Alipay as a real heavyweight and innovator within the mobile payments industry. What are the barriers for future growth?

Alibaba and Apple were in the same sentence quite a bit this week as rumours floated about a potential Alipay / Apple Pay tie-up. Beyond a potentially very unique name for a new payment service, what would a potential partnership bring to the table for the companies and consumers?

The launch of Apple Pay will likely have a profound impact on the payments industry in the US and potentially Europe, but what does it mean for China?

Beating Apple by nearing a week, on September 2nd, 2014, Alipay and Huawei announced the launch of their fingerprint payment service. The technology will be first shipped on Huawei’s Ascend Mate 7 phone, which was presented by the electronics giant on September 3rd.

QR code payment in China, suspended by PBOC on March 14th, 2014, have just been restarted by the Postal Savings Bank of China.

At the start of this month, leading global supplier of information and communications technology (ICT) Huawei had joined the board of Europe’s 5G Infrastructure Association.

According to PBoC 2013 Annual Report, the payments industry in China is growing fast, 17% in 2013 alone and 25% on average in the last five years.

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