CNNIC: The 45th Statistical Report on the Development of China's Internet in 2020 - Online Payment

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As of March 2020, the scale of online payment users in my country reached 768 million, an increase of 168 million from the end of 2018, accounting for 85.0% of the total Internet users; the scale of mobile online payment users reached 765 million, an increase of 182 million from the end of 2018, accounting for 85.3% of mobile Internet users.

In 2019, online payment covered increasingly wide areas, accelerating its penetration into vertical application scenarios and promoting the integrated development of the digital economy and the real economy.

The online payment business has grown steadily, effectively driving consumption upgrades. First, the online payment business continues to maintain a relatively fast growth rate. Data show that in 2019, non-bank payment institutions processed 719.998 billion online payment transactions, with a processing amount of 24.988 trillion yuan, up 35.7% and 20.1% year-on-year, respectively, achieving relatively fast growth. Second, mobile payment has effectively driven consumption growth. Non-cash payment tools are increasingly closely linked to people's daily lives, which not only reshapes the consumption behavior of individual residents and changes the business model of enterprises, but also drives the consumption growth of residents in various regions to a large extent. Third, mobile payment optimizes the consumption structure of mass households. Studies have shown that mobile payment can promote the growth of household consumption in my country by 16.0%, reduce the Engel coefficient (the proportion of food consumption) by 1.7%, and at the same time drive a substantial increase in development-oriented consumption such as education, culture, and entertainment, which is significantly higher than survival consumption such as food, clothing, and housing.

Online payment is becoming an active area for domestic enterprises to go abroad and for foreign enterprises to enter the domestic market. First, online payment business is going abroad and overseas business is developing rapidly. In recent years, with the growing demand for outbound tourism, the demand for digital development in countries along the Belt and Road has become increasingly strong, and more and more online payment companies are vigorously expanding. For example, in February 2019, after Alipay acquired the British cross-border payment company WorldFirst, the number of financial institution partners around the world exceeded 250; in May, NetEase The cross-border payment platform "collection and settlement" business was launched by the payment platform, aiming to help domestic sellers collect and settle funds and support the overseas expansion of their own e-commerce businesses. Second, the payment industry has gradually become a pioneer in expanding the opening of the financial market. After the country relaxed the access restrictions on foreign-invested payment institutions, in September 2019, the People's Bank of China approved PayPal's acquisition of 70% of Guofubao's shares, marking the first foreign-funded third-party payment institution to enter the domestic market; in November, under the guidance of the People's Bank of China, Visa , Mastercard and other five major international card organizations and Tencent We have launched cooperation to enable international credit cards issued overseas to be linked to WeChat Pay, which currently supports domestic consumption scenarios such as e-commerce shopping and travel bookings.

The integration of online payment and technology continues to deepen, driving the improvement of industry efficiency. New technologies such as the Internet of Things and near-field communication are accelerating their penetration in vertical fields, constantly giving rise to and changing related payment methods and forms. For example, in the field of transportation, ETC (Electronic Toll Collection) based on technologies such as inductive recognition and data networking exchange has developed rapidly. As of December 10, 2019, the number of ETC customers nationwide has reached 185 million, with an additional 105 million in 2019. The average utilization rate of ETC for passenger cars at the entrances and exits of national highways has reached 70.0%. In addition, with the deepening integration of technology and payment, the focus of competition among payment companies is gradually shifting to technology. Human-computer interaction technologies represented by face recognition and fingerprint recognition and risk control technologies represented by anti-attack and anti-fraud are becoming more and more widely used in the field of online payment.

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