In what could only be interpreted as good news, the Chinese market for mobile payments has exploded by a whopping 707%. What’s even more exciting is that this happened all in one year. The market reached a size of 200 billion dollars. In Chinese Yuan, that is 1,219.74 billion yuan. Folks, this is big news! This shows that Chinese is definitely on pace with the rest of the world in regards to making payments, shopping, and otherwise being comfortable with e-commerce over a mobile phone or mobile device. Since most online traffic is now going through mobile devices like smart phones and tablets, this opens a lot of doors of opportunities for e-commerce players both inside and outside of China.
A little caveat to the report. First of all, it was a report produced by a third party data analysis service called iResearch. So, we are not so sure how credible this information is. Second, the report factored in bills payment. Whenever you are doing that, you are going to have a massive explosion in payments. We’re still not sure whether people started paying bills online through mobile devices in 2012-2013 or they’ve been paying all along and it just only got started to get counted from 2012-2013. That’s why the huge jump.
It’s easy to become skeptical of this huge number because the figure for the year 2012 was 151 yuan. The figure for 2013 was 1,219 yuan. It’s a huge jump so assuming that all the statistical elements are on the up and up and the company that issued this report is legit then this is definitely great news. Regardless, the constant in mobile payments in China, even discounting the 2013 number, shows that China is definitely a great market crack for American tech companies.