China’s mobile payment sector is the largest and the fastest growing mobile payment market in the world. The total number of mobile payment users in China is expected to more than double from 80 million this year to 194 million in 2020, amounting to a total spend of S$365 million in 2020.
This is largely due to the increase in smartphone user penetration rate, greater access to high-speed mobile networks and better mobile payment services that cater to the needs of the Chinese mobile buyers.
Dominated by market leaders Alipay and WeChat Pay, the Chinese mobile payment sector is a highly lucrative, but competitive one. Mobile payment service providers Apple Pay and Samsung Pay just entered the Chinese market last year.
China’s mobile payment boom is mainly driven by Millennials and GenY from the first-tier and second-tier cities – 60% of mobile payment users in China are aged between 25 to 44. This reflects the greater familiarity with e-commerce technology amongst younger consumers.
Mobile payments can be used to pay bills, transfer money to peers, and facilitate e-commerce and retail transactions. The transaction value per mobile payment user is S$384 in 2016, suggesting that Chinese buyers are comfortable spending large amounts via mobile.
The majority of outbound Chinese tourists aged 25 to 44 are in the middle and upper income class, and they are comfortable with paying via mobile. However, most of the businesses in Singapore currently cater to the domestic market by only offering locally preferred payment services such as Visa, Mastercard and NETS. If you want to sell to the tech-savvy Chinese consumer, adapting your services to suit their preferences is one way to do so. FOMO Pay can help you connect with your Chinese customers by facilitating payments via Chinese payment modes such as WeChat Pay.
About FOMO Pay Pte. Ltd
FOMO Pay is the first authorized WeChat Pay & Baidu Wallet partner in Southeast Asia, and was selected as one of the TOP 100 Asian Companies by E27, TOP 100 Startups by Red Herring Asia, and Top 8 by DBS’ FinTech Accelerator Program.
FOMO Pay provides a one-stop solution for overseas merchants by facilitating payment collection from the China market, including Chinese tourists. This comprises of online/offline Chinese payment modes, such as WeChat Pay, Alipay and Union Pay.
FOMO Pay’s business solution serves clients from a wide range of industries, including the telecom, publishing, tourism and hospitality, F&B, education and retail industries.