An Introduction to the Mobile Payment Market and Trend in China

Abstract

Digital payment in China is undergoing dramatic development due to the rapid growth of social networks and e-commerce platforms which has transformed the way people communicate and transact around the world. The Alipay payment and Wechat payment (Tenpay) service have been extremely popular among the customers and merchants because of the features of these services which are faster, cheaper, safer and more convenient than traditional payment services with nearly 470 million mobile payment service users in 2016. The development of China's digital payment market also led to the diversification of business models which has boosted customers shopping styles that are challenging the traditional business models and financial systems. The development of China's mobile payment market also expanded the scope of financial inclusions by establishing mobile payment ecosystems. This research indicates the possible reasons that explain the different phenomenon between coastal provinces and less developed provinces in China