SHENZHEN, China, December 5, 2014 /PRNewswire/ — iResearch, a leading internet research agency in China, released its latest report which revealed stable growth in the online payment market in China.
According to the report, Tenpay, operated by Tencent, had a 20% share of the market as of Q3 2014, while Alipay, owned by Alibaba, had a 49.2% share. The Tencent mobile payment platforms have seen rapid growth. Running on the Tenpay infrastructure, Weixin Payment and QQ Wallet are mobile payment products built on the Weixin and QQ platforms, respectively.
GMV of China Online 3rd–party Payment Q3 2014
GMV of China online 3rd party Payment Q3 2014
Note: Online payment refers to money transfers made on the internet under the payment command of users via equipment such as desktop or laptop. Banks and Unionpay are excluded and only non-financial institution payment corporations are included. The GMV of China‘s online third-party payment is 2.02 trillion Yuan in 2014. iResearch adjusted historical data according to the latest market information.
Source: The data has been calculated and estimated in iResearch’s statistics and forecast model based on interviews with experts.
@Nov. 2014 iResearch Global Inc. www.iresearchchina.com
With the help of its large user base, Tenpay is one example of how Chinese companies are leading in mobile payment services. Alipay (owned by Alibaba), Tenpay (owned by Tencent) and Unionpay (owned by the government) currently dominate China’s mobile online payment sector with over 80% of the total market share, according to China Internet Watch.
Aside from reaching over 800 million active users on its leading social platform – QQ, Tencent is broadening its ecosystem with investments in various categories such as Chinese taxi-hailing app Didi Dache.
In addition, as part of the company’s open platform strategy, Tenpay is also helping banks serve its customers directly via Weixin.
Before Tenpay came along, Chinese banks had to spend resources developing their own apps and then encouraging customers to download them. Now banks can use their platforms to serve their customers directly while saving money by communicating through Weixin messages instead of SMS.
On Tenpay’s platform, users can pay for hailing taxis and make in-app purchases on Weixin for orders ranging from local pharmaceutical chains to organic tea shops. Given Tencent’s traffic leadership and login relationship with users, it would be a likely scenario for Tencent to eclipse Alibaba’s leadership, especially in the mobile payment market in China.
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