Market Trends of China Real Time Payments Industry
Increasing Penetration of Smartphone across China to Propel the Real Time Payments Market Growth
- The high smartphone penetration across the region supports the increasing adoption of real-time payments in China. As major real-time payment providers such as AliPay and WeChat Pay offers real-time payments through mobile applications, increased smartphone penetration is a much-needed push to flourish real-time payments in China.
- According to GSMA, 5G subscriptions in China will likely account for nearly a third of the global total by 2030. Furthermore, the technology is expected to add USD 290 billion to the Chinese economy in 2030, spreading benefits across industries.
- Further, with consumers in Mainland China increasingly shifting from cash to mobile-based real-time payments and skipping payment cards, real-time payments are expected to grow over the forecast period. Moreover, the high banked population and increasing internet penetration over the past few years further fuel the growth of the market.
- The country's high internet penetration also governs the success and growth of real-time payments in China. For instance, according to China Internet Network Information Center (CNNIC), China's internet population grew by 11 million in June 2023 compared to December 2022. Over one billion people had access to internet in the country. All of the factors combined are expected to boost the real-time payments market in the region over the forecast period.
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P2B Segment is Expected to Witness the Growth
- China's real-time payments are adopted widely by shopkeepers, restaurants, and various E-commerce platforms. This is further supported by high smartphone and internet penetration. Additionally, fast and immediate payments in seconds are attracting businesses and individuals in the region to perform P2B transactions through real-time payments owing to the immediacy and ease of convenience.
- The growing popularity of online shopping increased the number of online shoppers in the region, supported by high mobile internet penetration and fast payment checkout solutions such as real-time payments in China. For instance, as reported by CNNIC, there were about As of June 2023, about 884 million people in China had purchased goods online, compared to 610.11 million in 2018. This is further expected to boost the P2B real-time transaction in the region over the forecast period.
- With this growth anticipated to sustain, the studied market is projected to witness an upward growth trend in the e-commerce segment during the forecast period.
- Moreover, major players such as Alipay and WeChat Pay rapidly grow as preferred payment solutions for E-commerce platforms. These platforms offer innovative real-time payment solutions to online shoppers, increasing the P2B real-time transactions in the region. Hence, all these factors combined will likely boost the P2B transactions in China over the forecast period.
