Application scenarios
of Communications joined hands with UnionPay
and China Unicom to introduce SIM-SWP solution
in June 2010 in Shanghai - the Pacific-Unicom co-
branded debit card with SIM cards having bank
payment functions. The IC and SIM cards are
integrated into one card, which can be used on
POS devices with UnionPay log and supporting
contactless chips. On Sept. 2, 2010, ICBC and
China Unicom launched joint mobile payment
services and introduced the first SIM-card+PBOC2.0
contactless card in Shenzhen to meet customers'
needs for on-site micro-payment. At present, this
card can be used on the POS devices supporting
contactless chips and the supporting merchants
include chain supermarkets, fast food restaurants,
grocery shops, cinemas, and Guangzhou-Shenzhen
high-speed trains.
The Square payment model is an innovative model
where the smartphones, with an external card
reader and an app, can be turned into a POS
device. Similarly, UnionPay and iBox introduced
iBox payment, which supports all UnionPay
bankcards and credit cards. Users may check the
balance, repay credit cards, top up their mobile
phone accounts, pay for public utilities and use
other payment features.
Although banks and UnionPay actively engage in
proximity payment, their initiatives are primarily
regional with limited application scenarios and
geographical area. The main challenges for financial
institutions are banks and operators are separately
regulated and the policy and legal environment
for the fast development and expansion of mobile
financial services are not in place. Other challenges
are as follows: business models are uncertain; the
policy direction is unclear; the boundaries between
operators and banks are not well defined; there is a
lack of standardization; and uncertainty also exists
for the development of mobile devices. Due to
these uncertainties, most banks are still watching
and testing mobile payment and are reluctant to
make large-scale deployments.
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 24
BoComm has been a leader in mobile banking/mobile
payment in China. In 2009, BoComm Shanghai Branch
and China Telecom Shanghai Branch signed a strategic
cooperation agreement. In 2010, BoComm joined hands
with China UnionPay and China Unicom to launch a
SWP-SIM mobile payment solution, which integrates the
features of IC card and SIM card into one card and supports
proximity and contactless micro-payment. Users may
load credits into the card over the counter, via ATMs and
multimedia terminals. In 2011, BoComm introduced the
card-less withdrawal function and established the concept
of accessing remote financial services anytime anywhere.
In 2012, BoComm introduced the first mobile banking app
for BlackBerry devices. BoComm's new-generation mobile
banking services are available for iOS, Android, BlackBerry,
Symbian and other mobile operating systems.
Mr. Bing WANG, a senior manager at the electronic banking
unit of the BoComm, indicated that BoComm was an early
adopter of mobile finance and had introduced mobile banking
products as early as 2009. BoComm took the following
measures to develop mobile financial services: 1) migrate
the Internet services on fixed devices to mobile devices;
2) leverage the advantages of mobile devices to deliver
innovative services. BoComm was the first to launch Cardless
ATM withdrawal and Cardless consumption services, which
greatly facilitate people's lives and ensure security through
dual validation of mobile handsets and password. The best
feature of Cardless ATM withdrawal is that there is no need
for customers to change their habits of using ATM for cash
withdrawal. This product was well accepted by customers
after being introduced. "Cardless consumption" services
include financial service applications and daily life applications
(including plane tickets, film tickets, lottery, bill payment,
etc.) These services are delivered in collaboration with
device vendors through mobile clients. In addition, BoComm
introduced some corporate services suitable for mobile
devices, such as multi-level delegation in capital management
and Cardless ATM withdrawal from corporate accounts.
Around 10% of the 70 million BoComm's customers opened
mobile banking services.
A wide range of different devices from low-end to high-end
can all support BoComm's mobile banking services. Therefore,
BoComm has an advantage in offering rural mobile financial
services. Based on the practices of BoComm, it was found
that migrant workers are frequent users of mobile banking
services, particularly remittance service. At present, BoComm
offers money transfer between mobile handsets at no charge.
The Cardless ATM withdrawal via the mobile phone is offered
free of charge, with the goal of fostering the habit of mid-
and low-end users. BoComm believes that the demands of
rural market are huge, but the farmers haven't developed a
habit of using mobile devices for payment purposes. It takes
time for users to get to know and accept this product. Mr.
Wang pinpointed two problems facing rural mobile financial
services: 1) unaddressed security issues; only micro-payment is
supported; 2) inconvenience of SMS code.
Looking into the future, BoComm indicated their intention to
continue its cooperation with Internet players, TPP providers,
and application providers. Cardless lifestyle will drive the
trend. At present, BoComm's Cardless financial and electronic
account (bundled with handset and no physical bankcard) is a
type of Cardless service. In one or two years, remote payment
or proximity payment will both be on a fast track. At the time
when proximity payment experiencing hard time, the players
may try to find other approaches and get over the disputed
areas. In addition, BoComm is testing a LBS-based mobile
payment model.
Case:
Bank of Communications (BoComm) - leverage the advantage of mobile devices to create a
card-less lifestyle
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 25
Mobile payment becomes one of the important areas of
technology and business innovation for banks. Developing
mobile payment is a strategic initiative that could help banks
lead the innovation of payment services. Based on mobile
payment, Hua Xia Bank developed a full range of mobile
financial services. In the areas of investment and wealth
management services, Hua Xia Bank offers personal and family
capital management, investment and wealth management,
consulting on market conditions and other services. Due to
the portability of mobile phones, investment banking services
can be delivered via online banking channels and can offer
more choices for mid- and high-end customers.
Since the signing of a framework cooperation agreement with
China UnionPay in June 2011, Hua Xia Bank has introduced a
series of mobile payment and mobile banking services. Hua Xia
Bank launched mobile remote payment service in partnership
with China UnionPay in December 2011. The smart financial
SD card was used as the payment vehicle and the security of
mobile banking was greatly enhanced. The mobile remote
payment supports the bundling of one mobile phone with 10
UnionPay cards and customers can use mobile phones to pay
for utilities bills and credit card loans, top up mobile phone
accounts, buy lottery tickets, shop at mobile shops, book airline
and train tickets, make hotel reservations, and buy tickets of
tourist attractions. Hua Xia's mobile banking services broke the
boundaries between banks and allowed customers to access
their account details at different banks anytime, have complete
control of their own accounts and make better arrangements
for their funds. Customers can also use bankcards of other
banks or Hua Xia Bank to repay his credit card at Hua Xia Bank,
which is a great facilitation for customers.
Based on its market positioning and strategic development,
Hua Xia Bank believes that the future of the bank lies in not
only offering sound, complete and secure financial services,
but also expanding, enriching and integrating non-financial
value-added services. At present, Hua Xia is doing well in
the integration of financial and non-financial services. The
feature services offered by Hua Xia include: 1) making hospital
registration reservations via mobile phone in some cities
including Chengdu and paying the registration fee remotely;
2) booking movie tickets in some cities including Chengdu.
Movie-goers may buy the tickets and select their seats via
their mobile phones; 3) booking electronic tickets of some
tourist attractions; 4) delivering over 40 mobile payment
features in Chengdu. According to Hua Xia, security, ease of
use and functional completeness are the priority issues they
consider when they are developing mobile financial services.
In the area of proximity payment, Hua Xia is running some
pilot projects in Chongqing and partnering with UnionPay
to test proximity payment in Shanghai, Shenyang and some
other cities. Hua Xia used the smart SD card of UnionPay as
the mobile wallet. It supports micro-payment requiring no
physical card or password and high-value payment requiring
no cards but magnetic stripe data. Hua Xia is actively
developing financial and non-financial proximity payment
scenarios. The possible applications include attendance card,
campus card, city all-in-one card, fuel card, expressway ETC,
social security card, and medical card. In addition, the SD
card is capable of delivering public and community services.
Therefore, it can be used for social and public undertakings,
medical insurance and health care, transportation services and
corporate management applications.
In additional to personal mobile banking, Hua Xia is actively
preparing for the launch of corporate mobile banking services,
especially those targeted at small and micro-businesses. For
example, 1) applying for credit services via mobile phone.
The customer may submit their application documents by
way of taking photos and scanning, which can streamline
the processes for credit application; 2) mobile banking binds
the user and allows pledge loans; 3) for instance, in a small
commodity wholesale market, the market management
board can have its members to provide guarantee for each
other with their accounts as collateral and their products as
mortgage. The bank may provide mortgage loans for the
whole value chain. By creating an isolated environment, the
bank may connect products, logistics and financing together.
Mobile banking also allows cash withdrawal and eliminates
the constraints of time and space. In addition, Hua Xia also
believes that the development of agriculture-related finance
could be accelerated by offering agriculture-related loans and
money transfer services via mobile banking or home banking.
Case:
Hua Xia Bank - deliver a full range of mobile financial services
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 26
From a global perspective, mobile payment
has tremendous opportunities in rural
and underdeveloped regions. Rural Credit
Banks Funds Clearing Center (RCBFCC)
has worked productively in this regard.
RCBFCC was established on May 29, 2006
with the approval of the People's Bank of
China. The Center was initiated by over 30
provincial rural credit cooperative unions,
rural cooperative banks, rural commercial
banks and Shenzhen Rural Commercial Bank
(hereafter referred to as rural cooperative
financial institutions or RCFI) with the
registered capital of RMB100 million and
with the goal of resolving the cross-province
payment and clearing between RCFIs. The
Center established a nationwide payment and
clearing system between RCFIs and resolved
the problems of cross-province payment and
clearing. Due to the unbalanced development
of RCFIs, some newly founded RCFIs need to
improve their IT facilities to face competition
from commercial banks. The Center then
developed various systems in support of the
upgrading of RCFIs.
In such a context, the RCBFCC mobile
banking sharing platform was developed
with the aim of improving the development
of mobile banking system for RCFIs. The
Center expects this platform to attract more
RCFIs to develop mobile banking and form an
exemplary effect so as to boost the mobile
financial services of these institutions.
RCBFCC (the Center) now offers two types of
mobile banking services: installing a client on
the mobile handset or placing a film on the
SIM card to deliver mobile banking features
over the mobile phone. For the first type,
banks may develop the client software based
on different mobile operating systems. A user
may check his or her account and transfer
fund via the mobile client, which currently
supports iOS, Android and J2EE (Symbian in
particular). The Center also indicated that
other mobile operating systems will also be
supported in the future such as Windows
Mobile. In addition to basic financial services
such as account check and money transfer,
the Center also developed value-added
services such as mobile phone account top-
up. The user may top up his or her mobile
phone account via the mobile banking client.
For the second type, banks may place a film
on the SIM card. The user may put the filmed
SIM card into the phone and select services
through a menu. The service instructions will
be sent to the back end as encrypted SMS.
The back end then sends back the required
information in the form of SMS to fulfill
account inquiry, money transfer and other
payment functions. The second method is
device independent and can be supported by
95% mobile devices. The user is not required
to access the Internet or download and install
the client software. The user may use the
financial services after he/she asks the counter
of the bank to place a special sticker film on
his SIM card. This option is more suitable for
the customers of credit cooperatives. In these
two types of methods, customer account
and other related information is stored at
the provincial rural cooperative unions. The
instructions for account inquiries, money
transfers and other operations are sent
through the RCBFCC mobile banking system
to the provincial rural cooperative unions,
which then send the required information
back to complete the payment process.
Case:
Rural Credit Banks Funds Clearing Center - enable rural financial
innovations and develop rural mobile finance
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 27
At present, the client-based mobile banking
system is developing well. As of April 2011,
there were three provincial rural credit
cooperative unions that adopted the sharing
mobile banking system of the Center: rural
credit cooperative unions of Hainan, Guizhou
and Hubei. Hainan Rural Credit Cooperative
Union has commercialized the mobile
banking services. The other two unions are
conducting internal test run. About 10 other
credit cooperative unions are planning to
join the sharing mobile banking platform,
including the unions in Xinjiang, Shanxi,
Shaanxi, Inner Mongolia, Jiangxi, Sichuan
and Jilin. The filmed-SIM-card-based mobile
banking has been growing rapidly in recent
years. The Rural Credit Cooperatives of
Shandong developed 620000 customers
in less than one year. The cost of placing
the sticker film on the SIM card is borne
by RCFIs. These financial institutions are
very active for this model really can help
them attract effective customers with such
demands and with a relatively high degree
of security awareness. The cost is not a road
blocker for the development of the filmed-
SIM-based mobile banking. As more and
more cooperative financial institutions join
this camp, the cost will be further reduced.
The payment services most required by
rural residents are money transfer and
mobile phone account top-up. There is also
a huge demand to purchase game point
card via mobile handset at the county level.
Concerning the security related to SMS-
based payment, the Center indicated that up
to now there wasn't any single case of SMS
interception. In client-based mobile banking,
the generated transaction information will
be sent to the customer in SMS and the
customer needs to input the validation code
in the SMS to complete the transaction. It
has been proved highly security. In filmed-
SIM-based mobile banking, the transaction
instruction is completed through encrypted
SMS text. The key used each time is different
and it is therefore highly secure.
With respect to the thinking on the future
development of mobile banking, the Center
indicated that first, they would focus on
market development, keep a close eye on the
development of emerging payment means,
and select the payment methods suited to
rural needs; once the time comes, they will
put such system in production quickly for the
RCFIs have nearly 80000 outlets across China
and if there is a need, expansion can be
achieved easily; second, they would focus on
new type of services, such as the cooperation
with Alipay; third, they would consider
increasing the operating systems supporting
the client on the mobile handset and make
partial customization on their products.
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 28
Founded in June 2008, Chongqing Rural Commercial
Bank (CRCB) is the largest bank in Chongqing in terms
of total assets, total deposits and outlet coverage. It was
listed on Hong Kong h-share main board in Dec. 2010,
making it the first public rural commercial bank, the first
local bank listed in overseas market, and the first listed
bank in western China. Since its listing, CRCB, depending
on its advantages brought by institutional reform and the
strong capital capability, is committed to helping farmers,
agriculture and rural areas, supporting mid-sized, small and
micro businesses, driving the development of county-level
economy and enhancing innovation on financial products.
Developing mobile payment services is an important
part of CRCB's mission of promoting financial inclusion.
CRCB took a two-step strategy. Step 1: promoting the
filmed-SIM-based mobile banking. In July, 2011, CRCB
introduced the first such mobile banking product in
western China. The product allows the user to access his
account information, transfer and remit funds, manage
his account, and access wealth management services
and credit card services. The product has other powerful
features. The customer may enjoy account services on
the STK menu. The data is transmitted in encrypted SMS
and almost all the mobile phones can support the filmed
SIM card. Low cost of use, high level of security and wide
audience coverage enable the public, especially rural
residents, to benefit from the latest development in mobile
payment and help to achieve service equalization in urban
and rural areas. As of end of May 2012, the effective
customers reached 290000, the number of transactions
reached 8.71 million and the transaction value amounted
to RMB 51.8 billion yuan. This product was well accepted
by the customers. Step 2: CRCB was the first to launch
the NFC-SD mobile financial product based on UnionPay
standard. In Sept. 2011, CRCB, together with China
UnionPay, Chongqing City Smartlink Card Co. LTD, High
Tech Computer Corporation (HTC), and Shanghai F-ROAD,
launched this product in Chongqing. It is supported by
the NFC handsets developed by HTC with the SWP-SD
(single wire protocol) chip based on UnionPay standard. It
complies with the security standard developed by UnionPay
for NFC payment. It integrates self-service banking, remote
payment, proximity payment, e-wallet and other features.
It also combines basic financial services, multi-area mobile
payment applications and cross-industry mobile payment
applications together. It supports the mobile networks of
China Mobile, China Unicom, and China Telecom. In terms
of technology, functionality, security and other aspects,
this product is a leading product in China and around the
world. It is a new financial platform, which can change the
way of life of the people.
For the next step, CRCB will further improve "Jiangyu"
mobile financial product so that it will be better adapted
to mid- and low-tier customers. CRCB will work with
Chongqing Rail Transportation Group to accelerate the
upgrading of the POS devices in the stations of light
rails and subways. The cost of the SD cards and other
transaction fees will be exempted for customers. CRCB
hoped to attract over 50000 customers for this product
in 2012. China UnionPay Chongqing Branch is working
actively on upgrading the existing POS devices to support
NFC payment. It is expected that they will upgrade over
20000 POS devices in 2012.
"Financial innovation is an inexhaustible force for
sustainable development of a rural commercial bank and
an inherent requirement of the development of inclusive
finance. For the next step, we will, based on the related
mobile payment policies and standards, further strengthen
product development so as to support a broader customer
base and truly deliver differentiated, easy-to-use and
personalized products and services. This year, our bank will
further strengthen cooperation with Chongqing Electric
Power Company. The tests of installing NFC chips into the
meters have been completed. In the future, customers may
tap their NFC-enabled phones over the NFC sticker on the
meter to read the meter and make the payment. Our bank
is also considering developing mobile financial services and
products for corporate customers. I firmly believe that the
mobile payment business has a bright prospect," said the
head of electronic banking division at CRCB.
Case:
Chongqing Rural Commercial Bank (CRCB) - develop mobile payment services to
boost financial inclusion
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 29
Operators - open cooperation to achieve a win-
win outcome
Operators are important participants in mobile
payment industry. The three major telecom
operators in China: China Mobile, China Unicom
and China Telecom all established wholly-owned
subsidiaries specialized in mobile payment: China
Mobile E-Commerce, Unicom Payment Ltd., and
Tianyi e-Commerce Limited (hereinafter referred to
as operators' payment companies or OPCs). They
were all awarded the licenses by the People's Bank
of China to operate non-financial (non-banking)
payment business at the end of 2011.
OPCs were late comers in the payment over the
PC and lagged behind TPP providers and banks.
But they have mobile network resources and huge
customer base and may gain momentum in mobile
payment more easily. Providing customer-centric
and quality services and increasing customer
stickiness are the important drivers for operators to
develop mobile payment services.
OPCs have developed both remote and proximity
payments. The remote payment services are also
managed by OPCs in a centralized manner. This is
significantly different from the proximity payment
model. The proximity payment services are
managed by the provincial operating subsidiaries
of operators. OPCs provide provincial operating
subsidiaries with technology and management
support. In the remote payment model, customers
need to register online to use the payment
services. What is worth mentioning is that the
three operators' payment companies are providing
services not only for their customers, but also for
the customers of other operators.
The operators followed the market trends closely
when they developed mobile payment services and
products. They can now support different popular
payment options, including payment wallet model,
gateway model and quick payment model (shown
in Figure 14).
1) Mobile wallet model. Mobile wallets are
independent from the users' mobile phone
accounts. Customers may top up the mobile
wallet with cash, online banking account, mobile
phone credit, reward points, prepaid card and
other methods.
2) Gateway model. Operators act only as an
interface for webpage redirection. OPCs started at
different time; as a result, the number of on-line
banking options they support varies. The funding in
the model derives from debit cards and credit cards.
3) Quick payment model. Quick payment is a type
of payment first delivered by Alipay in 2011. The
quick payment model adopted by operators is
basically the same as the one adopted by Alipay.
Because this product was released recently, there
were a small number of cooperative banks.
Operators also made some innovations. For
instance, the quick payment product introduced
by China Unicom allows the user to pay the phone
bills via replying SMS.
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 30
Figure 14: Operator's remote payment business model
Due to the positive cooperation between operators
and merchants, operators' remote payment can
be used under many application scenarios. The
merchants can be divided into internal and external
merchants. The internal merchants may deliver
some of operators' services or may help operators
expand their services. Operators can control
these merchants in the payment field. Therefore,
operators gave high priority to internal merchants
for it was a good starting point for operators to
enter payment business. To stimulate the usage,
operators launched marketing and promotion
campaigns to attract users. For instance, operators
would offer the user discount and subsidy if the
user paid phone bills through operator's payment
applications. However, operators' payment
companies (OPCs) are facing strong competition in
the field of remote payment. There is no obvious
barrier in the field of remote payment and the TPP
providers and some banks may also deliver such
products. In the Spring Festival in 2012, there
were nearly 200000 person-times each day using
Mobile Alipay to top up their phone accounts. The
external merchants come from e-commerce, bill
payment and virtual currency purchase areas. This
is a traditional market for TPP providers. However,
the competition intensified as more and more
players entered this business such as UnionPay
and banks. Alipay, Tenpay and China UnionPay
have established close partnerships with a large
number of e-commerce players such as Taobao,
Tmall, 360Buy, Vancl, Suning.com and Amazon.
Operators will have to invest tremendous efforts if
they enter this market. In the field of bill payment,
operators enjoy certain advantages due to their
broader subsidiaries networks and better social
resources and stronger government relations which
compared to the UnionPay and the TPP providers.
At the current stage, the three operators selected
different proximity payment standards. While
developing 2.4GHz-based standard, China Mobile
Source: Mobile Payment in China Survey, Deloitte China, 2012
Top-up channels
Payment wallet
Quick payment
Gateway
Partners: banks, CUP, TTP providers, software and solution providers
Payment means
Internal merchants
Online outlets
Self-run services such as business
travel, game, video, and music
Self-run shops
External merchants
E-commerce websites
Utilities bill payment
Credit card repayment
Mobile internet service fees such as
game and video
Application Scenarios
Cash at the outlets
Prepaid cards
Phone credits
Reward points
Online banking top-up
with debit/credit cards
Bundling with online
banking of debit/credit cards
Online banking top-up
with debit/credit cards
TPP
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 31
is not giving up 13.56MHz standard. China
Telecom focused its efforts on 13.56MHz standard.
China Unicom implemented the NFC and SIMpass
solution based on13.56MHz standard and the
RF-SIM solution based on 2.4GHz standard in
Shanghai and some other cities, with SIMpass as
the main solution. As their business grows, China
Unicom and China Telecom are gradually shifting
toward 13.56MHz standard led by UnionPay.
In proximity payment, operators don't have a
nationwide business case. They pre-commercialized
proximity payment products only in some cities
and regions. In this area, all the operators selected
the partnership model and cooperated with banks,
UnionPay and all-in-one card companies. In such a
model, operators don't own the accounts, but they
provide support in card making, card issuance and
top-up channels. Users may go to the counter to
top up their wallets with cash, via bankcards over-
the-air, by their phone credits and through other
channels. Users may use their wallets for public
transportation, in supermarkets and at restaurants.
Based on operators' strong footprint in major
accounts (governments, companies and schools),
they introduce proximity payment to governments,
companies and schools. The upgrading of POS
devices is a pain point for proximity payment. The
adoption of POS devices supporting proximity
payment is a crucial element determining
customers' choice. If operators collaborate with
UnionPay to upgrade POS devices, the adoption of
proximity payment will accelerate.
Figure 15: Operator's proximity payment business model
Source: Mobile Payment in China Survey, Deloitte China, 2012
Top-up channels
Cash at the outlets
Payment wallet
Phone credits
OTA loading with
debit/credit cards
Partners: CUP, banks, public transport companies, chip makers, software providers,
device vendors, schools, government agencies and companies
Payment means
Public transports: subways, buses,
railways, etc.
Offline merchants: shopping malls,
department stores, chain restaurants, etc.
Schools, government agencies, companies
Technical solutions: RF-SIM,
SD-PASS, SIM-PASS, NFC
total terminal solutions, etc.
Application Scenarios
Partners' channels
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 32
China Mobile is the largest telecom operator in the
world. The value of mobile payment for China Mobile
is not to generate profit but to optimize customers'
experience, meet growing customer needs, increase
customer stickiness and reduce the churn. Driven by such
a motivation, China Mobile has established e-commerce
base in Changsha in 2006, which is responsible for
platform construction, product development and business
operation of mobile payment and mobile wallet services
of China Mobile across the nation. In the initial stage, the
e-commerce base focused on developing its proprietary
proximity payment standards and the applications of
proximity payment in such scenarios as access control and
public transport all-in-one card. The base conducted trials
in Hunan province and formed a certain market scale.
In June 2011, China Mobile's Hunan Branch (Hunan
Mobile) established a wholly-owned subsidiary - China
Mobile E-Commerce Co. LTD, which aims to deliver
mobile payment and mobile wallet services and providing
consumers with integrated mobile payment services.
China Mobile selected remote payment to deliver mobile
payment. Customers may do on-line shopping, pay
phone and utilities bills, and buy insurance and lottery
online via WAP, mobile client, IVR and SMS. China
Mobile E-Commerce offers mobile payment services on a
nationwide basis. As of November 30, 2011, China Mobile
E-Commerce had captured over 50 million mobile payment
users, with the transaction value over RMB10 billion yuan,
2000+ cooperative merchants, 400+ payment items and
80+ cities being covered. China Mobile's mobile wallet is a
type of key-enabled proximity payment service developed
by China Mobile E-Commerce. The provincial branches of
China Mobile helped to promote mobile wallet services
according to the features of local users, their technological
profile and their public resources while China Mobile
E-Commerce provided technical and managerial support
for the provincial branches. The standards of proximity
payment were not harmonized. China Mobile E-Commerce
delivered two types of proximity payment solutions
respectively based on its proprietary standard and the
standard of the financial industry.
In 2011, China Mobile's Shenzhen Branch worked with
Shenzhen Tong to develop the Mobile Shenzhen Tong
(MST) product. As of April 2012, a total of over 500000
cards were issued. This product became the most-widely-
used proximity payment product with the most cards
issued in one single city. The MST user may use his or her
mobile handset to make purchases at over 750 outlets
of shopping malls, supermarkets, cinemas and over 200
vending machines at subway stations, exhibition centers,
transport hubs and office buildings. They will continue to
increase the card reading devices supporting MST cards.
On October 19, 2011, SPD Bank's Changsha Branch and
Hunan Mobile launched China Mobile - SPD Bank Co-
Branded Mobile Wallet Card. This is the first innovative
bankcard that has integrated electronic cash micro-
payment function, debit card wealth management function
and the credit card consumption function in China. If the
card holder is a user of China Mobile, he or she may make
quick micro-payment at the UnionPay QuickPass devices
through the external mobile phone card attached to the
mobile devices. At present, the user may make quick
payment for his or her purchases at nearly 6000 shopping
malls, supermarkets, hotels, restaurants, drugstores, photo
studios, beauty shops and the establishments closely
linked with people's daily life in Changsha, Zhuzhou and
Bingzhou. They planned to introduce value-added services
based on this co-branded card and expand their business
scope and user base.
China Mobile E-Commerce, with a vision of serving and
facilitating people's lives, will continue to cooperate with
the players in the value chain in an open manner so as to
create the most widely-used payment tool and the most
convenient mobile e-commerce application platform. It
will open three areas for cooperation: payment, clearing &
settlement, and marketing application. The payment and
clearing & settlement capabilities include order payment,
bulk payment and settlement of individual accounts.
Case:
China Mobile E-Commerce - create a payment platform to achieve win-win cooperation
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 33
With the growing adoption of smartphones
and the rise of mobile e-commerce, mobile
payment has become a payment model
with the greatest potentials in the payment
industry. In the coming years, the size of
the market and the adoption rate will grow
substantially. China Unicom, as an important
player in mobile payment ecosystem,
is vigorously expanding the scope of
payment business. Unicom Payment Ltd.
was established on April 11, 2011 and was
awarded the license by PBC to operate non-
financial payment services on December 31.
2011. Unicom Payment Ltd. is responsible
for the payment business of China Unicom.
Based on the existing payment business
of China Unicom, Unicom Payment Ltd.
builds on the strength of China Unicom and
develops new types of payment services in
an innovative manner. Unicom Payment Ltd.
provides consumers and corporate customers
with the payment solutions across the
Internet, mobile network and POS network.
The payment business of Unicom Payment
Ltd. covers quick payment, online banking
payment, WO account payment, mobile
handset payment, fixed phone payment,
POS acquiring business, mobile wallet,
mobile public transport card, and integrated
corporate payment solutions.
Unicom Payment Ltd. has a clear positioning:
providing payment services closely related
to Unicom's services, devices and existing
communication resources and offering
differentiated payment services. The top
priority of Unicom Payment Ltd. is to
strengthen cooperation with e-commerce
and e-channel units of China Unicom and
provide the 200 million Unicom's customers
with a diversity of bill payment tools so that
customers may complete the payment of
Unicom's bills faster, more easily and more
smoothly. This may also reduce the pressure
of Unicom's outlets.
In the area of mobile remote payment,
Unicom Payment Ltd. has introduced a
wide range of service models including
online banking gateway redirection service,
"WO" payment account service, and mobile
payment plus, which basically covered all
remote payment models in the market.
The user may select suitable payment
services according to their own needs and
application scenarios. The mobile remote
payment services of China Unicom are
managed by Unicom Payment Ltd. in a
centralized manner. To facilitate the bill
payment process, China Unicom released
quick payment service. The user needs to
make some settings on his or her cellphone,
such as the date and ways for the reminder
of account payable/balance and at the same
time activate the quick payment functions
for the bankcards to be used for payment.
After the setting, China Unicom will send a
reminder message to the user's handset on
the date set by the user informing him or
her of the amount payable/balance. The user
may complete the payment of telephone
bills by sending back the reply message
or confirming the payment at the mobile
payment client.
China Unicom also set clear directions for its
proximity payment: 1) paying attention to
public transport card and all-in-one card for
schools and companies and hoping to grow
the business to a certain scale; 2) paying
attention to capital settlement business.
China Unicom has hundreds of thousands
corporate customers. Unicom needs to
deliver innovative acquiring business and
Case:
Unicom Payment Ltd. - tap internal resources and offer differentiated mobile
payment services
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 34
strengthen cooperation to provide fast
and easy-to-use payment solutions for
corporate customers. The markets of public
transport card and all-in-one card for schools
and companies vary greatly from region
to region. Unicom Payment Ltd. has not
adopted a centralized management model
for proximity payment and it only provides
technical support and shares experience
with provincial operating branches. China
Unicom has conducted mobile payment
trials in Beijing, Shanghai, Guangzhou
and Chongqing as early as 2011. They
issued a small amount of SIM cards with
public transport card functions. The mobile
handsets with such SIM cards can be read at
the card readers of buses and subways.
On April 26, 2012, China Unicom held a
ceremony to celebrate the establishment
of Unicom Payment Ltd., which marked
the official operation of Unicom's payment
company. DAI Renfei, General Manager
of Unicom Payment Ltd. said, "Unicom
Payment Ltd. will give priority to remote
payment and proximity payment services.
For the remote payment, we will focus
on mobile quick payment and micro-
payment services. We will deploy micro-
payment products and upgrade mobile
quick payment products in the latter half of
2012." Unicom Payment Ltd. indicated that
they would introduce proximity payment
products based on electronic cash and
conduct trials and they would continue to
promote mobile public transport cards and
all-in-one cards for schools and companies.
For the development and improvement of
payment environment in rural areas, Unicom
Payment Ltd. will introduce low-cost and
efficient mobile payment products for rural
residents based on its huge communication
network and service outlets and offer easy-
to-use, secure and fast payment services for
farmers. They will deploy and market such
products and services in some regions first.
In terms of industry application, Unicom
Payment Ltd. is integrating financial access
capabilities and building a centralized
collection platform, which will go online in
the latter half of the year. The centralized
collection platform will expand to other
industries so that the collection enterprises
could provide convenient withholding and
collection services. This platform can also be
used for sectors having frequent payment
transactions such as telecom, broadcasting &
TV, insurance, funds and public utilities.
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 35
China Telecom was the last operator in China to enter
mobile communications market. However, based on its
advantages in brand and corporate customer base it
accumulated from fixed-line and broadband business, its
mobile business has been growing rapidly. The number of
mobile users exceeded 140 million. Based on CDMA2000
technology, China Telecom was ahead of the other
two operators in terms of 3G customer penetration. It
paid particular attention to the application of emerging
technologies and stepped up its presence in mobile
payment in order to meet the 3G customer needs and adapt
to the development of the mobile Internet. On March 10,
2011, China Telecom set up a wholly-owned subsidiary -
Tianyi e-Commerce Limited. On December 31, 2011, it was
awarded a license by PBC for the operation of non-financial
payment services. Its business covers mobile payment, fixed-
line payment, e-point payment, and other fields. The value
proposition of Tianyi e-Commerce Limited in the value chain
is to provide customers with more convenient payment
applications by using the resources given by banks and
financial institutions as well as the technical support from
card providers, device vendors and system providers.
Before Tianyi e-Commerce Limited was established,
China Telecom had conducted trials in different provinces
on mobile payment service primarily based on NFC
technology. For instance, China Telecom Beijing Branch
(Beijing Telecom) introduced mobile Shangtong card
service. The Shangtong card account of Zihexin was preset
in the UIM card of 2.4G FRID handset. Tianyi user may use
the handset to pay for the purchase in over 50 merchants
cooperating with Zihexin. Beijing Telecom partnered with
China UnionPay (CUP) to deliver mobile bankcard services.
The smart financial UIM card in the handset carries the
personal bankcard payment account information of the
user and the handset becomes the payment information
processing device. As an emerging payment means, it
supports both remote and on-site payment. China Telecom
has a strong base of government, corporate and school
customers. Its mobile payment handsets have been used in
different scenarios on campuses, including access control,
attendance record, book borrowing, payment within the
campus, payment for boiled water and shower, etc. The
applications for corporate customers include attendance
management, restaurant consumption, and parking
management. China Telecom, as the card issuer, has issued
about 7 million mobile payment cards. However, due to
the absence of complete interoperability with UnionPay,
the economy of scale was not achieved, but China Telecom
and CUP have put it as a priority direction to expand.
Before 2011, China Telecom put its focus primarily on
proximity payment. After Tianyi eCommerce Limited was
founded, it considered remote payment based on mobile
client as another priority area. China Telecom introduced
the YiPay account, through which customers may complete
the payment. The YiPay account supports different types
of merchants including external merchants such as utilities
(gas, water, electricity, etc.), cinema tickets, train tickets
and traffic ticket fines, and big e-commerce websites
such as 360buy and Vancl and internal merchants, such
as China Telecom online outlets, TravelSky, TV189.COM,
189store.com, iMusic, etc.
Having obtained the payment license, Tianyi eCommerce
Limited became a full-service payment company delivering
both proximity and remote payment. Proximity payment
can be realized on FRID handsets, mobile phone POSs,
IPTV, multimedia self-service terminals and POS devices.
Remote payment can be delivered via mobile client, web,
WAP, SMS and IVR. In addition to remote and proximity
payment, Tianyi eCommerce Limited focused its efforts
on establishing the YiPay platform, on which China
Telecom may have centralized management of merchants,
customers and clearing & settlement. The YiPay platform
delivers five features: product configuration, transactional
orders, risk control, data analysis, and customer care
service. The establishment of YiPay Platform indicates that
Tianyi eCommerce Limited is able to provide corporate
customers with complete mobile payment solutions.
Case:
China Telecom - reduce customer cost and deliver convenient payment services
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 36
Third Party Payment providers - make
constant efforts to develop remote payment
and explore innovative services
Since Alipay became the first Third-Party Payment
(TTP) provider in China in 2004, the TPP industry
has been growing rapidly. The number of TPP
providers exceeded 300. In 2011, PBC awarded
101 non-financial payment licenses in three steps,
which indicated that the TPP industry entered a
stage of standardization.
The TPP providers focus primarily on remote payment
and there were very few attempts in proximity
payment. The rise of TPP providers came from web-
based payment on the PC in the Internet era. The web-
based payment was transplanted to the mobile handset
and remote payment can be delivered via WAP and
mobile clients. There are mainly three models:
1) Wallet mode. The customer needs to first
transfer fund to the payment account via multiple
channels, such as saving account or credit card
account. The customer may also top up their
payment account via mobile phone top-up cards,
virtual currency or the top-up cards offered by
payment companies.
2) Gateway model. Merchants may embed an
interface for the TPP gateway on the handset and
the user may select a payment bank on the TPP
interface and he or she will be redirected to the
mobile banking interface to make online payment
via credit card or debit card. In the gateway
model, the payment company only provides a
webpage redirection and the source of fund
comes from the bankcard.
3) Quick payment model. The user needs to bundle
the bankcard account with the TPP account at
the first use. In the following transactions, the
user only needs to input the password of the TPP
account to complete the payment. There is no
need for the user to enter bankcard number and
password. The security of customer data can be
better guaranteed. Quick payment was widely
accepted by customers due to it strokes a good
balance between security and quickness.
Figure 16: Remote payment business model of TPP providers
Source: Mobile Payment in China Survey, Deloitte China, 2012
Top-up channels
Payment wallet
Quick payment
Gateway
Partners: banks, CUP, TTP providers, software and solution providers
Payment means
E-commerce
Merchants
Credit card repayment
Money transfer
Hotels
Transports
Utilities bill payment
Film ticketing
Wealth management
Guarantee
Application scenarios
Remote payment of TPP providers supports various
application scenarios. In addition to the applications
offered by traditional e-commerce companies
such as Taobao, 360buy, Suning.com, and Vancl,
the TPP providers deliver a diversity of other
payment features and functions, such as credit card
repayment, payment for travel and tourism, public
payment, wealth management and guarantee.
E-commerce occupies a very important position
among the merchants using remote payment. With
the entry of UnionPay and banks, the competition
become more intense. Another area worth noticing
Prepaid cards
Phone credits
Virtual Currency
Online banking top-up
with debit/credit cards
Bundling with online
banking of debit/credit cards
Online banking top-up
with debit/credit cards
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 37
Account
Debit/credit cards
Customer presents
2D bar-code
Merchant scans the code
and push the message
2D bar-code scanner (mobile
phone or other devices)
Device vendors
Software providers
Chip makers
Solution providers
Customer receives and
confirms the message
Figure 17: 2D bar-code mobile payment business model
Source: Mobile Payment in China Survey, Deloitte China, 2012
Partners: banks, CUP,, software and solution providers, merchants
Virtual currency Phone credit top-up Top-up cards
Payment
successful
Debit/credit card top-up
39
Square batter in the
Chinese version: concerns
remain with mobile
payment security, Invest in
China, www.china.com.cn,
April 9, 2012,
http://invest.china.com.cn/
wwwroot/c_0000000
20001/d_49972.html
collection side may be an individual or a merchant.
The Alipay App also offers bar-code scanning
and payment collection functions. The bar-code
payment is realized via the network. Although the
consumer and the merchant face each other, the
payment is completed remotely. Such innovative
model requires no change to the handset hardware
and shortens the length of the value chain. The
scanning is completed via handset or other smart
devices. There is no need to upgrade POS devices.
The coverage of the product was still very limited
and the market responded weakly. This model has
not been deployed in a large scale. Among the
respondents of our mobile payment survey in China,
a manager from e-banking unit of a bank indicated
that the 2D bar-code model is all about the reverse
ID authentication. The payment environment is not
closed and there are too many steps in the payment
process. The customer experience and perception
are not as good as cash and credit card payment.
Moreover, some TPP providers also introduced
card reader mobile payment products. Such
as the Smartphone Card Reader introduced by
99bill. Different from the Square mobile payment
model, which focuses on providing micro-payment
services for consumers, the 99bill targets corporate
customers with its Smartphone Card Reader.
According to the head of market unit of 99bill,
99bill has signed commercial agreements with
many insurance companies and have introduced
payment products for industry customers
39
.
is the payment of financial wealth management
products. Compared with e-commerce, financial
wealth management product usually involves a
huge transactional amount and therefore generates
more profit. But the central bank has more stringent
regulation on the payment of non-financial
institutions for financial wealth management
products. In 2011, only China PnR, Allinpay,
ChinaPay, and YeePay were awarded the TPP
licenses for funds. In May 2012, Alipay, Tenpay and
99bill also acquired such licenses. As more payment
companies enter this market, the competition in the
mobile payment for financial wealth management
products will increase.
The TPP providers are conservative in proximity
payment. They haven't introduced payment
products based on RFID or NFC technologies.
But they are not waiting and they made active
attempts in proximity payment depending on their
advantage in remote payment. Through 2D bar-
code technology, they may also fulfill the proximity
payment functions. The 2D bar-code payment
launched by Alipay is very typical. The 2D bar-code
payment requires the user to download the Alipay
App. When the user pays for the purchase, he or
she may use the Alipay App to display the 2D bar-
code representing his or her account. The payment
collection side will scan the bar-code and then
enter the collection amount. The system will return
the information to the App and the use clicks the
confirmation button to complete the payment. The
Quick payment
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 38
Founded by Alibaba Group in December
2004, Alipay (China) Network Technology
Co. Ltd. is a leading TPP provider in China.
It is committed to providing "simple, secure
and fast" online payment solutions for
e-commerce in China. Alipay was originally
established to safeguard the rights and
interests of the e-commerce consumers.
Traditionally, the electronic payment requires
the consumer to transfer funds directly
to the merchant's capital account via the
Internet. There was much fraudulence and
other drawbacks. Alipay, as a third party,
established a payment platform, which
serves as an intermediate platform between
consumers and merchants. The security level
of payment was improved substantially. This
model has not only boosted the fast growth
of other e-commerce websites, but also
made Alipay China's largest TPP provider.
Besides the traditional online payment
business on the PC end, Alipay is also an
active player in mobile payment industry.
As early as 2010, Alipay set up a wireless
business unit to develop SMS payment,
WAP payment and embedded payment for
non-smart devices. The market of mobile
Internet was still underdeveloped and the
mobile payment developed by Alipay failed
to achieve the economy of scale. But Alipay
accumulated rich experience through these
attempts. With the rapid development of
mobile Internet and the quick adoption of
smart devices, the wireless business unit
started to migrate the traditional online
payment functions to the mobile handsets.
Alipay was a forerunner in mobile payment
in China.
At the end of 2010, Alipay and more than 60
vendors including the handset chip vendors,
system solution providers, handset hardware
providers, and mobile application providers,
jointly established the Secure Payment
Industry Alliance (SPIA) and introduced
wireless payment product for mobile Internet
- "mobile secure payment", an open platform
for mobile application developers. This
marked that Alipay completed its deployment
in the wireless payment market and officially
launched the open strategy for mobile
Internet payment. On April 20, 2011, UC
and Alipay signed a strategic joint venture
agreement, announcing the launch of the
first mobile payment solution in China.
The payment can be completed with only
one click by the user on the mobile phone
equipped with a UC Browser. It is four or five
payment steps less than the WAP payment.
For the micro-payment less than RMB200
yuan, the user does not even need to enter
password. It also saves the associated
development efforts of e-commerce
websites, who only need to write a line of
secure payment code identifiable to the UC
Browser on the page. Alipay also launched
a quick payment product, which allows
the user to complete the payment by only
entering the card number of cooperative
Case:
Alipay - explore innovative models to drive the rapid expansion of the
third-party payment industry
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 39
banks and payment password without the
need to log on the on-line banking pages.
After two years' efforts, Alipay has achieved
the scale in the field of mobile payment. In
H2 of 2011, the daily transaction volume of
Alipay wireless payment exceeded 500000
transactions. On the Singles Day alone, the
payment transaction volume reached a record
high of 33.69 million transactions, including
1.71 million wireless payment transactions.
Alipay cooperated with merchants to deliver
mobile payment services. Besides Taobao
and Tmall.com, Alipay also offers mobile
payment functions for MeiTuan.com, Lashou.
com, Vancl, Dianping.com, Letao.com,
NewEgg.com.cn, Qunar.com and other big
merchants. The Alipay mobile client supports
all the mainstream mobile operating system,
including iOS, Android, Symbian, Windows
Mobile, BlackBerry, and Java. As of the end
of 2011, the installation base exceeded 10
million. The Alipay mobile client provides a
wide range of services including payments,
collection, mobile phone account top-up,
lottery purchase, bar-code payment, utilities
bill payment and so on. As online payment
got more and more mature, Alipay also set
its eyes on proximity payment. In October
2011, Alipay launched the bar-code payment
function to facilitate customers to consume
in shops, convenience stores, and restaurants.
Consumers can use Alipay mobile client to
display the bar-code or 2D bar-code of their
accounts. The collection side scans the code
and enters the payment amount. The system
returns related information to the client.
Consumers click the confirmation button and
the payment is completed. The collection
side can also be an individual. The Alipay
client also provides corresponding bar code
scanning and payment collection functions,
which can convert the smart mobile devices
into the scanner of the cash register.
Alipay made its presence in mobile payment
very early and has reached a certain scale. On
one hand Alipay has a huge active customer
base. The smartphone adoption increases
and the acceptance of non-cash payment is
increasing. On the other hand, Alipay made
innovative attempts in mobile payment and
provided customer with supreme experiences
based on its rich experience in the field of
payment on PCs. Alipay has been making
constant innovations on its mobile payment
services and products.
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 40
Established in July 2006, China Payment and Remittance
Service (China PnR) is headquartered in Shanghai, with
offices in Beijing, Shenzhen, Chengdu and other cities
and with a registered capital of RMB100 million. The core
team is made up of senior managers of China's financial
industry. On May 28, 2011, China PnR became one of
the earliest TPP providers to obtain payment licenses.
China PnR, as an expert in electronic payment, focused
on financial payment and value chain payment. Its core
competitiveness is to provide industrial customers with
quick, accurate and customized payment solutions,
develop innovative electronic payment services and
products and boost the development of e-commerce in
various industries. Based on this positioning, China PnR
casts its eyes on the aviation payment at the early stage
of growth and rapidly establishes cooperation with Air
China, China Southern Airlines, China Eastern Airlines, and
other major international airlines. Subsequently, China
PnR enters the funds payment and launches TTYFund and
other wealth management products. To date, China PnR is
serving tens of thousands of industry customers spanning
across different industries, such as funds, airline ticketing,
commercial circulation and digital entertainment.
China PnR is also a leading payment company in China
just like Alipay. However, the models are different. China
PnR is committed to finance-grade electronic payment
expert, targeted at industry customers, bulk payment and
B2B. Alipay, depending on its power Taobao platform,
is targeted at consumers. With the booming of mobile
Internet, China PnR expects its mobile payment business
will reach the level of RMB100 billion in 2012. E-commerce,
aviation payment, and financial payment are key growth
points in mobile payment. In such a context, China PnR
announced Asi@ mobile payment strategy, which consists
of four pillars: All, Security, Independence and @anywhere.
Mr. ZHOU Ye, Chairman and President of China PnR said,
"Mobile payment is a historical opportunity to change the
payment landscape. China PnR, with capital, technology
and professional team, is committed to mobile payment.
We look forward to growing together with other players in
the value chain." China PnR plans to invest RMB100 million
in mobile payment in the initial stage to deliver complete
payment settlement and capital chain management
solutions based on mobile Internet for the players in both
downstream and upstream of the value chain.
China PnR has released various payment products based on
mobile phone, such as card number payment, quick mobile
phone payment, image recognition technology, and wealth
management mobile terminal. For other terminals, China
PnR launched PAD+EPOS payment solution, which allows
the insurance brokers to complete the collection of premium
once the client confirms the amount of the premium and
swipe the card. The capital will be managed at the back-
end management system. Take mobile e-commerce as
an example, 360buy, Suning.com and other e-commerce
companies deliver services through the client on the
mobile phone while China PnR integrates mobile payment
technology in the clients of e-commerce companies. The
user may use the e-commerce client installed on the mobile
phone to place orders and make purchases directly via the
mobile payment. The payment is also completed on the
mobile phone. It really allows the user to shop anytime
anywhere. In the financial area, China PnR also moved its
core product - TTYFund to the mobile phone and introduced
TTYFund client to allow user to purchase funds products via
mobile phone. CHENG Shanbao, a senior manager at the
strategic development unit of China PnR said, "the winning
mobile payment strategy is fostering demands, developing
user habit, diversifying application scenarios and making
technologies ready." With the interactions of multiple
factors, mobile payment will enter a fast track.
China PnR has given a strategic priority to mobile payment
and has clearly identified its positioning of mobile payment.
The mobile payment solutions offered by other payment
companies are more inclined to micro-payment of consumers
while China PnR is expected to make breakthroughs in the
field of mobile bulk payment due to its strong presence in
aviation and financial sectors and become another strong
competitor in mobile payment.
Case:
China PnR - develop Asi@ strategy to enter the mobile payment market
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 41
Easylink (Guangzhou) Payment Network Co.
Ltd (Easylink) was founded in 2005, with the
registered capital of RMB100 million. In 2011,
it has obtained the payment business license
issued by the People's Bank of China, which
allows it to operate mobile phone payment
services and prepaid card issuance and
acceptance business. Easylink is working with
China UnionPay to provide mobile remote
payment services based on IVR technology.
Easylink focuses on IVR payment and it's
not competing with other TPP providers in
Internet payment. Therefore, it also maintains
a good cooperative relationship with the TPP
providers. Some TPP providers uses Easylink's
IVR solution and risk control. The user
payment will be cleared by Easylink to the
accounts of the TPP providers, which then
clear the payments to the merchants.
Easylink's IVR remote payment is a type
of card-less certified payment with the
asynchronous transmission of transaction
data and password through the dual
channels of data and voice. In a transaction,
the user needs to provide the merchant
with the bankcard number, his or her name,
mobile phone number, ID number and other
identity authentication information, which
will be transmitted to the back-end via the
Internet data channel. When the data is
validated by the system and platform of the
card issuer, the UnionPay IVR voice payment
platform will call the mobile phone of the
card holder to confirm the payment. The
card holder answers the call and inputs the
payment authentication element (payment
password for debit card; expiration date for
credit card, CVN2). The back-end, after data
matching, will initiate the password-based
(requiring no magnetic stripe information)
transaction payment request, which will be
sent to the relevant bank via UnionPay's
platform to complete the payment. For some
business which requires regular payment,
such as payment of premiums, the user only
needs to input the password one time (no
magnetic stripe information is required),
and for the remain payments, Easylink may
provide regular payment collection functions
without the need for the user to input
password again. When the user completes
payment, the capital will be cleared by
UnionPay to Easylink account, which will
clear the capital to the merchant's account.
According to DENG Yun, COO of Easylink,
Easylink currently supports next-day arrival
of capital. For some special services, such
as insurance, Easylink will make advance
payment to the accounts of insurance
companies and have regular settlement and
rebate with insurance companies.
IVR-based payment is less dependent on the
hardware of mobile devices. The user simply
needs to transmit password information
by the IVR channel. In theory, any phone
supporting voice functionality can work.
However, due to the fact that this payment
method requires only password without the
need to swipe bankcards and the IVR was
little known to the user community, there
was little understanding of such a payment
method and a lot of concerns over its security
in the early days of promotion. To address
these concerns, Easylink worked closely
with banks to increase the number of banks
supporting such methods. Furthermore,
Case:
Easylink - seek innovative IVR payment model and focus on the blue sea of
mobile payment market
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 42
Easylink took all the risk of bankcard fraud.
When the user completes the transaction, the
fund will be cleared from the bank account
to the Easylink account, which will then clear
the fund to merchants' account. If there
is a bankcard fraud, Easylink will make the
compensation. Such model reduces the risks
associated with bankcard fraud and theft
for the user, but this requires a high level
of risk control at Easylink. Easylink controls
risks from two aspects: on one hand, they
selected big and quality merchants for the
cash-out possibility of these merchants is
low and they have better protection of user
information; on the other hand, Easylink built
up a proactive risk control system. When a
user initiates a transaction, the system will
first judge whether this is the authorized user.
If the system fails to confirm the user ID,
the customer care operator will make a call
to the user to confirm the user ID by asking
some authentication questions. The risk
control system sets up different amount limits
for different users and different businesses.
As the transactions of the user increase, the
system will make dynamic adjustment to
the limit. In addition, each time when the
transaction is completed, Easylink will send
the transaction information in SMS format
to the mobile phone of the user to further
ensure the security of user funds.
The IVR remote payment of Easylink is
gaining momentum. Talking of the expansion
of merchant base, Mr. Deng said that the
major call centers in China have all adopted
Easylink's IVT payment solution including
10086, 12580, 112114, and call centers of
ticketing agencies and insurance companies.
Though it requires significant system upgrade,
the IVR payment is irreplaceable in the call
center payment solutions and it is growing
well. On the mobile Internet side, there are
more and more companies using Easylink's
IVR solution. At present, mobile lottery
payment has adopted Easylink IVR payment.
The iTunes account top-up also starts to
support Easylink's IVR payment. The user base
is less than 10 million, but the trend is picking
up, especially when iTunes also selected this
solution as one of their payment options. The
number of users is increasing by thousands
each day and the pace is accelerating.
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 43
With the rapid growth of mobile Internet in China, an
innovative payment model, O2O (Online to Offline), is
emerging in mobile payment market. Buding.cn (Beijing
Buding Fangzhou Sci &Tech Co., Ltd) was founded just for
this purpose in Nov. 2010. Buding.cn is the first batch of
incubation projects of Innovation Works (an investment
company and founded by Dr. Kai-Fu Lee in September
2009) and is committed to the O2O area in mobile
Internet. It has obtained the A-round financing of nearly
$10 million from Zero2IPO Capital, a domestic venture
capital management company. Buding.cn has introduced
a number of applications, including Buding Life,
Buding Movies, Buding Food, Buding Coupons, Buding
Takeaways, and Buding Film Tickets. It supports both iOS
and Android platforms. In 2011, Buding.cn started to
shift from providing applications for everyday life at the
beginning to mainly offering coupon-centric products. As
of March 2012, Buding.cn had over 10 million active users.
Buding.cn is studying the market demands and developing
new products in the hope to bring the most practical
application tools to facilitate the daily life of the users.
The business model of Buding Film Ticket is that the
customer may purchase the coupon and complete the
payment remotely through the client on the handset.
When the user walks into the cinema, he or she could
change the coupon into the ticket. The client-based
remote payment currently only supports UnionPay and
Alipay. 100% of the Buding Film Ticket users are mobile
payment users, proving that the adoption rate of mobile
payment in some business models of mobile Internet can
reach 100%. The user ordering the tickets may differ
from the user paying for the tickets. According to the
data of Buding.cn, the success rate from product ordering
to payment completion was 25%, a leading indicator in
the industry. But there were still 75% of the users who
ordered the film tickets but gave up purchase due to the
unacceptance of remote payment over the client. The
online payment experience became a critical factor in the
payment process. According to Mr. XU Lei, founder and
CEO of Buding.cn, the order conversion rate will rise to
30% to 40% if the payment process is further improved
and optimized. However, the room for improving
customer experience is very limited for delivering supreme
customer experience may lead to security issues. The O2O
mode faces great challenges but still have big room for
improvement and optimization. The key is to find a good
balance between user experience and security.
Based on the studies of Buding.cn on remote payment,
customers wish to have a buffer zone in the payment
process. For instance, customers may have concerns
to make online payment with UnionPay bankcards for
UnionPay is directly linked with their debit and credit cards.
Judging from the online payment statistics, Alipay is the
most active product, followed by credit cards and debit
cards. Customers have concerns to directly associate their
debit cards with an online account. For credit cards, they
still got opportunities to appeal and get back their money.
But for debit cards, if something goes wrong, they cannot
get back the money once the payment is completed. It is
much easier for customers to accept Alipay for the amount
is usually small and the user would not suffer a huge loss
even if the account is lost or stolen.
Case:
Innovation Works: Buding.cn - an innovative model for online payment and offline
consumption (O2O)
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 44
Trusted Service Manager (TSM) Platform:
promote open cooperation to lead innovation
in mobile payment
There are various players involved in mobile
payment, especially in proximity payment value
chain. Great difficulties exist in balancing their
interests and harmonizing the standards. Mobile
payment is still in its infancy in China and a
stable industry landscape has not been formed.
The security issue is the biggest challenge for
the industry. To protect user data security and
effectively manage the participants in proximity
payment, the third-party TSM platform appeared.
The most representative case is the TSM solution
of FirstData. FirstData plays a very important role
in managing the participants of Google Wallet. It
offers interfaces for various bankcards based on its
technology and platform infrastructure and allows
users to use Google Wallet to complete payment
easily and quickly. The TSM platform offered by
FirstData is highly scalable. The user may set up
multiple loyalty accounts in this virtual wallet to
enjoy merchant discount and control costs
40
.
There are also third-party TSM entities in China's
mobile payment industry. As an emerging third-party
entity, TSM is independent from operators, financial
institutions and TPP providers. By developing card
and POS device specifications, TSM worked with all
the players to provide users with mobile payment
services (see Figure 18). For instance, Mobile
Shenzhen Tong project, as a TSM platform jointly
initiated by Angel Shine in Shenzhen in collaboration
with China Mobile and Shenzhen Tong, have
achieved good commercial results. About 550000
Mobile Shenzhen Tong cards have been issued, with
270000 transactions per day and 51% of active
users per day
41
.
The TSM model is a feasible solution from the
technical perspective, which could coordinate
the interests of different players for the common
development of the industry. The third-party
TSM model is a business model featuring open
collaboration (see Figure 18). It plays a key role in
three aspects
42
.
Firstly, TSM increases the mutual trust between
the players in the ecosystem. The third-party TSM
platform, as a neutral party, provides a place for
the players to coordinate their interests. TSM
is the center of mobile payment value chain. It
maintains and enhances the relationship with
service providers (including financial institutions)
and operators and provides check, test and
support for new applications, customer support
and some supporting management services such
as data storage.
Secondly, it serves as a bridge between mobile
users and application providers. TSM connects
application providers such as banks with operators
and is a bridge between them. TSM allows any
participant to access the customers of other
participants easily. It provides the participants with
NFC payment services and relieved them from the
need to manage complex relationships. TSM may
also offer a set of specifications accepted by the
participants to allow every participant to access
applications easily.
40
41
42
Mobile Commerce, Google
Wallet, First Data,
http://www.firstdata.com/
en_us/products/merchants/
mobile-commerce/google-
wallet.html
Deloitte's survey on mobile
payment in China, Feb. -
May 2012
Edward Kountz, 2010: A
Crossroads For NFC Mobile
Payments, Forrester, , Feb.
21, 2010,
Figure 18: Open and collaborative third-party
TSM platform
Source: Mobile Payment in China Survey, Deloitte
China, 2012
Virtual card
providers
Financial
institutions/
non-financial
payment
providers
MNOs
Third-party
TSM platform
Merchants
Physical card
providers
POS providers
and equipment
manufacturers
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 45
Lastly, the independent TSM may provide virtual
card/application management. As the center for
multiple service providers and mobile network
operators, TSM supports over-the-air download
and activation of payment applications and other
more personalized mobile applications such as
loyalty programs. When the user device is lost,
TSM may lock and terminate related applications
to guarantee the security of personal data.
Generally speaking, proximity payment involves
three key elements: physical cards, POS devices
and management systems. The key role of TSM
is to build and operate the system, coordinate
the interests of different participants, and provide
viable industry specifications for physical card
providers and POS device providers to allow
them to access TSM platform (see Figure 19). The
physical card for TSM is a CPU card, which supports
basic functions as well as virtual card/application
issuance functions. The payment features are
expanded to support multiple functions of security
documents (ticket, coupon, certificate, and card).
On the physical card side, the independent TSM
develops related specifications and delivers
them to physical card providers (chip providers
and encapsulation vendors). The physical cards,
examined by the TSM, will be provided for mobile
network operators (MNOs), which will then
distribute the physical cards to the users. Physical
cards do not integrate application or virtual card.
The TSM will write the virtual card and application
into the physical cards to fulfill payment functions.
When the cards are issued to the users, TSM may
also add virtual card/application via OTA download
to expand the features of physical cards.
Customers MNOs
POS
network
Physical card
providers
POS
providers
Virtual card/
application
providers
Third-party TSM platform
Figure 19: TSM business model
Source: Mobile Payment in China Survey, Deloitte China; Angel Shine, 2012
Source of funds Business models
Physical cards
Users
a
l
m
p
n
r
d
k f i
h
j
g
e
s
o
q
c
No.
b
POS devices
Merchants
a. OTA loading
b. Fund transfer
c. Top-up
d. Swipe card
e. Delivery
f. Transaction settlement
g. Fund transfer
Banks
Non-Financial
Payment
Institutions
Top-up
channels
h. Virtual card/application issuance
i. Account management
j. Confirm remote payment
k. Send account information
l. Provide card-making specifications
m. Provider POS device specifications
n. Supply card
o. Issue card
p. Provide application/virtual cards
q. Supply POS devices
r. Supply POS network
s. Upgrade POS devices
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 46
On the POS device side, the TSM also needs to
provide the POS specifications for POS suppliers,
which will then manufacture POS devices
and contactless card readers according to the
specifications. POS suppliers may provide the
compliant POS devices for users through POS
network (UnionPay, All-in-one card networks) and
upgrade existing POS devices with contactless card
readers with the authorization of POS networks.
With respect to the source of funds, users may
store money into the "wallet" through banks, non-
financial institutions, or cash top-up channels and
make payment at the POS devices. The user may top
up his or her wallet over the air on a menu when
there is insufficient balance if the user bundles his
bankcard with his or her account. Mobile Shenzhen
Tong of Angel Shine has established cooperation
with ICBC, ABC, Bank o China (BoC), CCB, China
Everbright Bank, SPD Bank, Bank of Beijing, and
Bank of Communications. If the user bundles his
debit card with his wallet account, he may top up
his wallet through STK menu
43
.
In terms of business operation, TSM's main
responsibilities include: to coordinate, develop,
provide and maintain specifications, manage
user accounts and capitals and expand merchant
resources and application scenarios. Another
important task of TSM is to align industry
specifications. This involves the coordination,
development, provision and maintenance of
the specifications. First, TSM needs to know the
technical and business standards of different
participants, including financial institutions, non-
financial institutions, mobile operators, and virtual
card/application providers and then design and
develop a set of mobile payment specifications,
which can accommodate these standards so
that different players may accept and recognize
these specifications. TSM needs to provide the
specifications for physical card providers and POS
device providers. The vendors involved in the
production of physical cards and POS devices need
to follow these specifications in the production
process. These cards and devices shall be examined
by the TSM and the qualified products will be
supplied to the (physical) card issuers such as
MNOs. With the expansion of application scope,
the applications of different industries need to be
incorporated into the specifications. As a result, TSM
needs to maintain and update its specifications so as
to meet the needs of an open collaboration model.
TSM's main roles concerning the management
of user accounts and capital include storage and
transferring of user data, capital management, and
customer relationship management (CRM). Firstly,
the user data is stored on the TSM platform. The
user may inquire account, top-up and transaction
records through STK menu or by other means.
Secondly, the top-up credits from various channels
will be transferred to the accounts on the TSM
platform. Before fund settlement with merchants,
the money will stay at the TSM account. TSM
needs to manage the fund and ensure its security
for the purposes of capital settlement with
merchants and meeting user needs to unload
credits. Lastly, another task of TSM is customer
relationship management. When the user
encounters a problem in mobile payment, TSM
needs to respond in a timely manner to help the
user resolve the problems and maintain customer
relationship through customer care services.
TSM is also responsible for expanding merchant
resources and application scenarios. In a certain
degree, the diversity of application scenarios will
determine the popularity of mobile payment. TSM,
as an open platform, may interface to different
application scenarios and merchant resources.
This concerns the payment processes of different
application scenarios and the coordination
and harmonization of the service and technical
specifications of different merchants. Compliant
virtual cards/applications examined by the TSM
may be integrated into the physical cards to
expand features and applications.
We believe that in a chaotic mobile payment
market, it is necessary to have a third-party
platform, which can coordinate the interests and
technical and service standards of different players.
The emergence of TSM advanced the mobile
payment industry in China. Financial institutions,
operators, and TPP providers all want to take
the leading role. The fights among them have
resulted in the development of third-party TSMs.
43
Mobile payment in China
Survey, Deloitte China, Feb.
- May 2012
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 47
Players Costs Benefits Tendency of cooperation
Financial
institutions
Transaction processing,
client development, CRM
Transaction fee, customer
value
Leveraging operators' channels; sharing bigger
Internet e-commerce market; active customers
Mobile
network
operators
(MNOs)
Handset subsidies, POS
devices, CRM
Mobile wallet leasing
fee, transaction fee,
advertising fee
Leveraging capital accounts and clearing
and settlement systems; reducing repetitive
construction; expanding payment merchants
base and enriching the handling environment
TPP providers Platform construction
Platform/ transaction fee,
user data
Saving time and cost of building physical
channels; avoiding being marginalized
Third-party
TSM
Platform construction,
coordination cost, back-
end costs
Platform/ transaction fee,
user data
Obtaining greater support; sharing platform
construction costs; entering nationwide markets
quickly
Device
manufacturers
Design, production, and
support
Marginal profit,
differentiation
Cost savings generated by scale-based
production and greater market
Technology
providers
Platform construction
and maintenance costs
Service fee, user data New source of growth
Merchants
Transaction fee, POS
device upgrade, loyalty
reward
Cost saving, efficiency
increase, customer loyalty
improvement
Leveraging cooperative platforms, channels,
brands, expanding consumer base and improving
self-branding
Table 1: Costs, benefits and tendency of cooperation among different participants
Source: Mobile Payment in China Survey, Deloitte China, 2012
In the future, with the further adoption of mobile
payment, particularly proximity payment, TSM will
enjoy tremendous potentials for further expansion.
Players in the value chain: geared to win-win
cooperation as a whole
From a cost/benefit perspective, financial
institutions may get transaction fees, attract
and retain customer resources through mobile
payment services. The main cost factors are
transaction processing, client development,
construction and maintenance of settlement
systems. Mobile network operators wish to
increase customer loyalty through mobile payment
and obtain revenues from mobile wallet leasing
fee, transaction fee and advertising fee. The TPP
providers need to establish transaction platforms
and obtain transaction fee from each transaction.
The equipment vendors and technology providers
may provide technical and equipment support for
financial institutions, operators and TPP providers
and generate new growth points. The support
from merchants is also an important factor for the
development of mobile payment. Mobile payment
should bring added value to them and help them
reduce transaction costs (see Table 1).
Financial institutions, operators, and TPP providers
are the major participants in mobile payment
industry and they have formed different business
models. The business model led by financial
institutions focuses on offering specialized financial
services. They may integrate the existing financial
networks, clearing systems, customer base and
merchants resources, but they have weak control
over the device -manufacturers. In the business
model dominated by operators, operators have
stronger control over end users and device
manufacturers, but they lack merchant resources.
TPP providers have advantages in user base and
online merchant resources, but they lack offline
merchant resources and their influence on device
manufacturers is limited. These business models also
face challenges, but the participants, as a whole,
hold a positive attitude of win-win cooperation.
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 48
Lack of policy support and lack of standard
alignment are the biggest challenges facing
the value chain
There are many different participants involved in
the mobile payment industry including financial
institutions and operators. From a regulatory point
of view, it is a very complex issue. A number of
government agencies including the Ministry of
Industry and Information Technology (MIIT), the
People's Bank of China (PBC), and China Banking
Regulatory Commission (CRBT) are involved
in the development of polices, standards and
industry specifications. Based on the survey results
of Deloitte, lack of policy support and lack of
standard alignment are the biggest challenges
for the industry. Due to uncertainties at the policy
level, the companies were relatively conservative
in technical, human resources and capital
inputs, which in a certain degree hindered the
development of the industry. The third biggest
challenge is security issue. Many customers are
reluctant to use mobile payment due to security
concerns. How to guarantee payment security to
the maximum extent is a subject for the players.
Other challenges include "weak user demands"
and "difficulties in reaching an agreement on
revenue sharing". (See Figure 20)
Figure 20: Please rank the challenges facing your company when developing mobile payment
strategies in order of severity according to your knowledge
Source: Mobile Payment in China Survey, Deloitte China, 2012
13.73%
8.80%
12.32%
8.45%
10.92%
10.92%
7.75%
5.99%
9.51%
6.69%
4.58%
0.35%
Lack of policy support
Lack of standard alignment
Security issue
Weak user demands
Difficult to agree on revenue-sharing
Industry segmented
High cost
Lack of user understanding
Lack of NFC-enabled devices
Technical barriers
No support from merchants
Others
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 49
For financial institutions, the biggest challenge in
remote payment is how to develop user habits,
improve the utilization of mobile payment, and
convert the bank users not using mobile financial
services and the users getting used to mobile
payment of TPP providers to the mobile financial
service platforms of financial institutions. In
the area of proximity payment, the challenges
for financial institutions are: limited application
scenarios, difficulties in changing user habits, and
unstable user experiences.
Operator payment companies (OPCs) are new
entrants in mobile payment. They face big
challenges in cooperation and operational
experiences. The number of banks and online
merchants collaborating with OPCs are far smaller
than those working with big TPP providers. The
payment resources of operators are not fully
integrated and lack of partners is one of the barriers
to the development of OPCs. In terms of operating
experiences, OPCs have some disadvantages in
the ease of use of the product, internal resources
integration, technical development and execution.
In the proximity payment, the biggest challenge
lies in uncertainty in standards.
The biggest challenge for TPP providers is
how to satisfy and lead the fast-changing user
demands through constant innovation. The
third-party companies are in a weaker position
than financial institutions and operators in terms
of scale, policy support and profitability. Only
through innovation can they win their places in a
fiercely competitive landscape.
The main challenge for the third-party TSMs
comes from the development of specifications
and technical development. The participants
have already established relevant specifications
based on their own standards. They face great
difficulties in aligning different specifications. The
technical development concerning specification
development is also very complex. The complex
specifications may bring risks to system operation.
In the real operation, there might be security risks
and the user experience might be affected.
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 50
Prospects of mobile payment ecosystem
in China
Mobile payment will become a
mainstream means of payment in 2015
Mobile payment will receive constant attention
in the coming three years. Proximity payment
and remote payment will be the hot spots of the
industry. Among the respondents of Deloitte's
survey, 93% believe that proximity payment
will receive high and medium attention in the
coming three years and 95% believe that remote
payment will receive high and medium attention.
There will be more and more participants
joining the value chain to drive the innovation,
promotion and adoption of mobile payment
tools. Specifically, micro-payment and electronic
coupons will receive more attention from the
industry. 88.28% respondents believe that micro-
payment will receive high and medium attention in
the coming three years and 81.08% respondents
believe electronic coupons will receive high and
medium attention in the coming three years. It
indicates that mobile payment will be primarily
micro-payment in the coming three years. Mobile
payment will start to integrate electronic coupon
features. The advantages of mobile payment tools
will be further manifested. For P2P/P2C payment,
27.03% respondents believe that it will receive
Level of
attention
P2P/P2C
payment
Micro-
payment
Electronic
coupon
High 27.03% 54.05% 46.85%
Medium 49.55% 34.23% 34.23%
Low 22.52% 10.81% 17.12%
Zero 0.90% 0.90% 1.80%
Table 2: Level of attention paid to P2P/P2C
payment, micro-payment and electronic
coupon in the coming three years
Source: Mobile Payment in China Survey, Deloitte
China, 2012
Mobile payment will become a hot spot in China in the coming three years and it
will attract sustained attention. In 2015, mobile payment in China will become
a mainstream means of payment. The adoption rate of proximity payment and
remote payment will further increase and there will be more players to join
the mobile payment value chain. The competition in mobile payment market
will get more intense. Co-competition will be the main theme for the mobile
payment value chain. Deloitte believes that due to the fierce competition and
the participation of multiple players, they will actively build an open business
model. The TSM platforms will spring up. The participants will jointly establish
the mobile payment industry promotion organization, which will play an
important role in integrating the third-party TSM platforms, building an open
innovative ecosystem, promoting the development of this industry and driving
the win-win cooperation among the players.
sustained attention in the coming three years.
Therefore it can be concluded that it's hard for
P2P/P2C payment to become mainstream mobile
payment method. (See Table 2)
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 51
Currently In 1-2 years In 3-4 years In 5-10 years In 10+ years
Figure 21: When mobile payment will become the mainstream means of payment in China?
Source: Mobile Payment in China Survey, Deloitte China, 2012
By 2015, proximity payment will become the
mainstream means of mobile payment. Although
mobile payment is still in its infancy in China, the
industry as a whole has full confidence in the
prospects of the industry in the coming three
years. 32.71% respondents believe that proximity
payment will become the mainstream means of
mobile payment in one or two years; 50.45%
believe that remote payment will become the
mainstream means of mobile payment in one or
two years. Therefore, it can be seen that remote
payment will still be the mainstream means of
mobile payment in China. Looking at the coming
three and four years, 51.41% respondents
believe that proximity payment will become the
mainstream means of mobile payment (see Figure
21). This also reflects that most participants
considered proximity payment a hot spot area, but
they were still cautious to enter this area.
0%
Proximity
Remote
20% 10% 30% 50% 70% 90% 40% 60% 80% 100%
Figure 22: What types of players will affect the development of mobile payment in China in
the future (2015)?
Source: Mobile Payment in China Survey, Deloitte China, 2012
21.37%
6.61%
20.48%
5.29%
16.96%
15.86%
5.07%
8.37%
The players will continue to compete
with each other and the co-competition
will remain the main theme of the
mobile payment industry in 2015
The main players in mobile payment industry in
China are financial institutions, MNOs and TPP
providers. They all have made active attempts in
mobile payment. The situation will continue in
2015. In the Deloitte survey, 21.37% respondents
believe that banks will dominate the mobile
payment industry in 2015 while 20.48% believe
that MNOs will lead the mobile payment in 2015,
16.96% believe that it will be China UnionPay and
15.86% believe that it will be TPP providers (see
Figure 22). It can be concluded that the players
will continue to compete with each other and the
co-competition will remain the main theme of the
mobile payment industry in 2015.
Banks
MNOs
CUP (China UnionPay)
TPP providers
Application providers
Merchants
SIM card or chip makers
Device vendors
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 52
Figure 24: What types of players have or will have the strong control over mobile payment
applications and security?
Source: Mobile Payment in China Survey, Deloitte China, 2012
Source: Mobile Payment in China Survey, Deloitte China, 2012
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
2012 2015
39%
35%
17%
13%
8%
7%
6%
11%
5%
2%
6%
7%
3%
12%
15%14%
In 2015, the players that will have the strongest
control over mobile payment device users are
MNOs, followed by banks. In Deloitte's survey,
33% respondents believe that MNOs will have
the strongest over mobile payment device users
by 2015 while 30% believe that banks will have
the strongest control over mobile payment
device users. Meantime MNOs' control over
mobile payment device users will decrease. 46%
respondents believe that MNOs now have the
strongest over mobile payment device users,
however only 33% respondents believe that it will
remain so by 2015. (See Figure 23)
Banks have the strongest control over mobile
payment applications and security. In Deloitte's
survey, 39% respondents believe that banks
have the strongest control over mobile payment
applications and security, followed by MNOs.
17% respondents believe that MNOs have the
strongest control over mobile payment applications
and security. It will remain so by 2015 for 35%
respondents believe that banks will have the
strongest control over mobile payment applications
and security. MNOs' control over mobile payment
applications and security will further decrease (see
Figure 24).
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
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a
y
)
T
P
P
p
r
o
v
i
d
e
r
s
T
P
P
p
r
o
v
i
d
e
r
s
M
N
O
s
M
N
O
s
2012 2015
26%
30%
46%
33%
8%
3%
2%
8%
0% 0% 0%
1% 1%
15% 15%
12%
Figure 23: What types of players have or will have the strongest control over mobile payment
device users?
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 53
Figure 26: Please score the likelihood of success of the following mobile payment business
models in remote payment
Figure 25: Please score the likelihood of success of the following mobile payment business
models in proximity payment
Source: Mobile Payment in China Survey, Deloitte China, 2012
Source: Mobile Payment in China Survey, Deloitte China, 2012
Open and cooperative business models
are more likely to win by 2015
The open and cooperative business models
are more likely to win in the coming three
years. According to the survey results, the
model featuring cooperation between financial
institutions and operators is more likely to succeed.
47.71% respondents believe that the cooperative
model between financial institutions and operators
is more likely to win in the proximity payment
area and 43.81% respondents believe that the
cooperative model between financial institutions
and operators is more likely to win in the remote
payment area. In addition, establishing open
mobile payment platforms is also highly recognized
by the respondents. 34.86% respondents believe
that this model will win in the proximity payment
area and 32.38% respondents believe that this
model will win in the remote payment area. (See
Figure 25 and Figure 26)
0%
0%
20%
20%
40%
40%
60%
60%
80%
80%
100%
100%
1 (Most likely to succeed) 2 3 4 5 (Least likely to succeed)
1 (Most likely to succeed) 2 3 4 5 (Least likely to succeed)
Establishing an open mobile
payment platform
Partnership between financial
institutions and operators
Reliable third-party
intermediaries
Operators only
Financial institutions only
Establishing an open mobile
payment platform
Partnership between financial
institutions and operators
Reliable third-party
intermediaries
Operators only
Financial institutions only
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 54
Building a mobile payment ecosystem
will be the main goal of industry
development in the coming three years
It will be a natural choice for the players in the
mobile payment value chain to seek for win-win
cooperation. The main goal of the mobile payment
industry in the coming years is to build up an open
and innovative ecosystem. It is unrealistic for any
single player to dominate the whole industry. Only
through cooperation can the players push forward
the development of mobile payment in China.
Moreover, an open and cooperative business model
is essential for the large-scale commercialization of
mobile payment in China.
The mobile payment industry also faces great
challenges in China. From regulatory and policy
perspective, there are no clearly-set market
access rules and the technical standards are not
harmonized. From the technical perspective, a
more flexible platform is required to enhance
security and anti-fraud activities. In the coming
three years, the third-party TSM platform will grow
rapidly and steadily.
At present, MNOs have started to build up the TSM
platforms they could control. China Telecom, China
Mobile, and China Unicom have all completed
the construction of TSM platforms. China Telecom
and China Unicom have opened the card space to
allow the release and management of third-party
applications. MIIT also indicated the intention to
develop the standards concerning TSM platforms
and push forward its development. However,
the TSM platforms dominated by one part of
the players may lead to isolated ecosystems and
contradict with the interests and strategies of
other players in the value chain. If it turns out to
be a lasting fight for mobile payment standards,
merchant resources and user resources, it will
seriously impede the development of mobile
payment in China.
Deloitte believes that the third-party TSM providers
independent from financial institutions, MNOs and
the TPP providers, will usher in big development
opportunities. Deloitte also foresees that due
to the facts that the value chain is diverse and
complex, there are a vast number of participants
and the competition for interests and resources
is intense, simply relying on the introduction of
a single standard and the establishment of third-
party TSM platform are not enough to change the
current situation or boost the rapid development
of the industry as a whole. For example, Google
Wallet model, with American FirstData as the
third-party TSM provider, recently encountered
some difficulties, which can be attributed to
the complex chain of interests and the failure
in coordinating the interests of the players. The
value chain consists of Google, operators, handset
manufacturers, credit card companies, banks, and
merchants and there are giants in every link of the
chain. The complex chain of interests eventually led
to the failure of Google Wallet
44
.
Compared with the precarious Google Wallet model,
the launch of the proximity payment ecosystem
led by the Infocomm Development Authority (IDA)
of Singapore in collaboration with the third-party
TSM provider is worth expecting. In October 2011,
IDA joined hands with Gemalto to deploy mobile
NFC contactless services across Singapore. Gemalto
will develop and operate the TSM solution so as to
securely deploy and manage mobile NFC services
such as payment, ticketing, bonus points, smart
poster (which allows consumers to interact with the
ad) and other wireless services. Singapore's three
mobile operators all established connections with
this interoperable NFC infrastructure. Banks, payment
providers and service providers will be able to deploy
innovative mobile NFC services for all the mobile
subscribers of different operators. This open and
secure platform will also encourage more companies
and service providers from various industries to
join the ecosystem and provide more services for
consumers. The TSM infrastructure is able to support
the potential service providers to extend their services
to all mobile subscribers in Singapore. The project
is expected to be commercialized and start offering
services in mid-2012
45
.
It is in Deloitte's belief that the mobile payment
industry in China needs an open and orderly
ecosystem where the boundaries of the
stakeholders are well defined. It is a progressive
process to build up such an ecosystem. The players
need to explore cooperation opportunities with
an open mind. The construction of the ecosystem
should move forward smoothly and orderly
on the basis of integrating different business
models, updating specifications and consolidating
platforms. Based on the innovation theory and
the practice of mobile payment in China, we
divided the development of the ecosystem into
three phases: transformation, standardization, and
stabilization. (See Figure 27)
44
45
Google Wallet failed:
it's hard to balance
the interests of
different players, China
Entrepreneur,
http://tech.hexun.com/2012-
06-04/142089277.html
Gemalto started to deploy
mobile NFC contactless
services across Singapore,
Business Wire,
http://news.yktworld.com/
201110/2011102611242
93582.html
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 55
Figure 27: Evolution of China's mobile payment ecosystem
Source: Mobile Payment in China Survey, Deloitte China, 2012
Third-party TSM
platform
Merchants
Merchants
Merchants
Merchants
Merchants
Trusted
third-party
platform 2
Trusted
third-party
platform 6
Trusted
third-party
platform 4
Trusted
third-party
platform 1
Trusted
third-party
platform 3
Trusted
third-party
platform 5
MNOs
MNOs
MNOs
MNOs
Device
vendors
Financial
institutions
Financial
institutions
Financial
institutions
POS device
vendors
Chip
makers
Solution
providers
Application
providers
Mobile payment
industry promotion
organization
Trusted third-party
platform
Financial
institutions
Device
vendors
MNOs
Application
providers
Solution
providers
Chip
makers
POS device
vendors
Merchants
Norming phase
Transitional phase
Stable phase
Strategy
Merchant
resources
Risk
control
Device
vendors
Information
User
resources
TPP
providers
Equipment
manufacturers
Equipment
manufacturers
Equipment
manufacturers
Equipment
manufacturers
Trusted
third-party
platform
TPP
providers
TPP
providers
TPP
providers
TPP
providers
Mobile
payment
industry
promotion
organization
Financial
institutions
Mobile payment
industry promotion
organization
Technology
providers
Technology
providers
Technology
providers
Technology
providers
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 56
Transformation - establish an industry
promotion organization and open the channels
for interactions and communications
Institutional innovation is critical for the
development of mobile payment industry in
China. Financial institutions, operators, third-
party payment (TPP) providers, merchants, device
vendors, chip makers, POS device manufacturers,
application and solution providers, as the
participants in the value chain, are expected to
create a harmonious ecosystem and establish
stable business models. The business activities and
the communication among the participants require
proper institutional arrangements, guidance,
coordination and sustained incentives.
It is in Deloitte's belief that the ecosystem needs a
mobile payment industry promotion organization.
This organization should take into account China's
reality, seek various routes to promote win-win
cooperation among the participants, advance
the development of mobile payment industry in
China, and properly coordinate the interests of
different participants. This organization should
coordinate marketing strategtes, make rational
arrangements, promote fair competition, and
make rational allocation of related resources.
The organization should be initiated by the
government in collaboration with the trusted third-
party responsible for organizing, planning and
establishing such an organization.
The mobile payment industry promotion
organization needs to consult with the players
involved as well as the third-party TSM providers
on common market positioning and strategies and
help the players eventually reaching an agreement
on the sharing of profits and resources. During
the transformation period, the top priority for the
organization is to identify the participants in the
mobile payment. For example, the third-party TSM
provider needs to first approach operators, banks,
CUP, and TPP providers to consult on technical
standards and application specifications. Then, the
TSM provider also needs to work with equipment
manufacturers and technology providers to
advance product agreement and technical
integration. Moreover, the TSM provider also
needs to collaborate with merchants to promote
the application and adoption of mobile payment.
In the whole process, the TSM provider needs to
identify the participants and the leading players
through market surveys and in-depth interviews
and based on the characteristics of their business
models and commercial activities.
The promotion organization may assist the third-
party TSM provider in negotiating with the
participants on standards and specifications and
building and expanding the TSM platform. This
is an interactive process. The organization may
set up project groups to discuss the agenda for
the joint creation of the organization. The project
groups may also develop new plans, strategies
and structures and finally reach agreements on
the charter of the organization. The promotion
organization is responsible for coordinating and
integrating resources and establishing rational
distribution mechanisms and internal management
and reporting mechanisms concerning information
and technology, user resources, merchant resources
and risk control.
Standardization - promote mutual learning
and develop common standards and
specifications
During the standardization phase, the industry
promotion organization should integrate multiple
third-party TSM platforms and align different
specifications and standards. It should establish
a coordination and communication mechanism
interacting with different industries and
participants and integrate them into the unified
platform, develop corresponding rules binding
to all the players. In this process, the promotion
organization needs to have active consultations
with the platform provider and other players in
the value chain. Based on the coordination of the
promotion organization, the players concerned
should study and develop unified standards
according to the development needs and establish
databases, organizational structure, management
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 57
mechanisms, reporting mechanisms, talent pool
and market access rules. The players concerned
should strengthen the security of the mobile
payment system, establish and improve the security
management system, and enhance the security
management of the third-party TSM platforms
so as to create a secure network environment
for the development of mobile payment and
address the security concerns of mobile payment
transactions. The players should, based on the
integrated platform, with the organization's
charter as the guideline, carry out internal and
external commercial and technical exchanges and
cooperation and coordinate and share various
resources through the platform.
Stabilization - share risks and resources
and achieve win-win results under the co-
competition mechanism
With the coordination of the mobile payment
industry promotion organization, the players
concerned may share strategies, information,
technologies, users, merchants, risks and other
resources based on the integrated third-party
trusted platform. They may cooperate and
compete in an orderly manner and achieve the goal
of profitability. In accordance with the guideline
of win-win cooperation, the players concerned
may jointly conduct business cooperation and
develop new products and explore new markets.
The promotion organization should consolidate
the cohesiveness of the members, deepen mutual
trust between the members, and enhance the
competitiveness of the overall industry. Based
on the platform effect, the organization should
continue to accept and identify new members,
update the norms and guidelines of the
organization on an ongoing basis, and ultimately
achieve the sustainable development of the mobile
payment ecosystem.
This ecosystem applies not only to proximity
payment but also to remote payment. We
recommend the construction of mobile payment
ecosystem in China may start from pilot programs
at regional or provincial level. In this way, we may
largely reduce the risks involved through testing
the feasibility of such an ecosystem in reality.
When the ecosystem reaches the stable phase, the
experience gained can be expanded throughout
the entire country.
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 58
Conclusions
Mobile payment went through a critical path in
China in 2012. On one hand, the country issued
various policies, developed clear mobile payment
standards, and helped to form a unified service
management platform. The country made positive
efforts to create a good environment for competition
and cooperation and ensure the healthy growth
of mobile payment industry. On the other hand,
the participants gradually increased their inputs in
technology, capital, human resources and other
fields and tried to gain an upper hand in the market.
Mobile payment was trialed in different application
scenarios, including remote and proximity payment.
User awareness of mobile payment increased and
the adoption rate went up. With the chemistry
among governments, the industry and users, we
believe that the mobile payment industry in China
will see breakthroughs in the coming three years.
The number of customers, transaction value and
product varieties will reach new high peak and the
economy of scale will be achieved.
The business model will become clearer in the
coming three years. The growth of mobile
payment ecosystem will speed up. Competition
and cooperation will be the main themes of the
industry. There will be more and more internal
integration among financial institutions, operators
and TPP providers. They will leverage their own
advantages and make pioneering and innovative
efforts to deliver fast and easy-to-use mobile
payment services.
Mobile payment, as an emerging industry, faces many uncertainties in its
development process. Reviewing its development in the past several years, the
players grew rapidly and made some progress in mobile payment despite of the
uncertainties existing in the environment. Different mobile payment products
are emerging in the market and these products have delivered fast, efficient,
and secure mobile payment experiences for users.
Deloitte, as an independent third-party consulting
firm, has rich experience in mobile finance and
mobile payment. We have a global team for
mobile financial services and payment. They may
provide all the players in the value chain including
banks, operators, bankcard organizations, TPP
providers, merchants, device vendors, POS device
manufacturers and related government agencies
and regulatory bodies with strategic consulting
and technical support services in many areas
including mobile financial services, planning and
development of market strategies, venture capital
and M&A, design of operational models and
organizational structures, design of products and
customer experience, infrastructure upgrading
and technology integration, anti-fraud strategy
and development of risk model, expansion and
innovation of marketing channels. We assist
companies around the world pushing frontier
payment technologies into the market and guided
the execution of payment strategies, product
design and systems. We participate in M&A,
conduct market evaluation and due diligence
investigation and help companies increase revenue
and improve operating performance.
This is an exciting era full of opportunities and
challenges. We believe that with the efforts of all the
players in the value chain, the mobile payment industry
will enter the maturity phase faster. We hope that
every player will grow rapidly and harvest the fruits of
mobile payment growth in China. Finally, we wish that
you and your colleagues could benefit from this report.
We always welcome your valuable feedbacks.
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 59
Methodologies
We interviewed 16 influential Chinese enterprises
within the mobile payment industrial chain,
including financial institutions, mobile carriers,
third-party payments providers, Trust Services
Managers (TSMs), device manufacturers, and
mobile payment technology companies. We also
interviewed related regulators. In preparing for
the interviews, we conducted necessary research,
designed interview questions and maintained
good relationships with the organizations to be
interviewed. We encouraged the interviewees
to offer their own views and opinions. In-depth
interviews enabled us to obtain rich, detailed
information.
We also conducted online surveys. Questionnaires
were designed to ensure that respondents fully
expressed their views on China mobile payment
In this study, we conducted a thorough analysis of the current situation
of China's mobile payment industry, mobile payment strategies, business
models and the major challenges faced by various players within China mobile
payment industrial chain; and investigated the construction of open innovative
mobile payment ecosystem and predicted the future development of the
mobile payment industry. Our methodologies include in-depth interviews,
questionnaires, qualitative and quantitative analysis, literature reviews, media
reports, case studies, etc.
trends and prospects. We sent out a total of 200
questionnaires to the related mobile payment
players from February to May 2012, and received
111 validated questionnaires of them back.
Responding organizations were from China mobile
payment industrial chain, including financial
institutions, mobile carriers, third party payments
providers, application providers, SIM card or chip
manufacturers, mobile device manufacturers, etc.
The respondents came mostly from corporate
decision-makers and senior management, i.e., senior
executives or managers with extensive experience in
the field of mobile payment. All respondents were
informed of the purpose of the survey, that their
participation was voluntary, and that their responses
would remain anonymous. All the data obtained
were organized with professional statistics software,
and were tabulated using MS Excel.
By industries: By roles:
Partners / General
Managers
9%
CEO
5%
Senior Vice
General Managers
/ Senior Managers
16%
Vice General Managers
/ Managers
42%
Others
28%
SIM Card or Chip
Manufacturers
11%
Others
10%
Third Party
Payments
Providers
19%
Application
Providers
19%
Financial
Institutions
27%
Merchants
2%
Device Manufacturers
5%
Mobile Carriers
7%
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 60
Research Team
Vivienne Huang
Assistant Manager, Deloitte China Research
and Insights Center
Miao Yang
Deloitte China Financial Services Industry
Center of Excellence
Sharon Song
Deloitte China Financial Services Industry
Center of Excellence
Authors
Pengcheng Wang
Managing Partner, Deloitte China Financial
Services Industry Leader
Tel: +86 10 8520 7123
Email: wangpc@deloitte.com.cn
Richard Li
Senior Manager, Deloitte China FSI Center of
Excellence
Tel: +86 10 8520 7031
Email: ricli@deloitte.com.cn
William Chou
Managing Partner, Deloitte China Technology,
Media & Telecommunications Industry Leader
Tel: +86 10 8520 7102
Email: wilchou@deloitte.com.cn
Jessica Hu
Director, Deloitte China Technology, Media &
Telecommunications
Tel: +86 10 8512 5314
Email: jesshu@deloitte.com.cn
Yingwei Wang
Senior Consultant, Deloitte China Technology,
Media & Telecommunications
Huidong Li
Deloitte China Financial Services Industry Center of
Excellence
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 61
Acknowledgements
The strong support and full cooperation from our colleagues were obtained in the process of data collection,
writing and publishing this report, and we hereby specially express our thanks to the following personnel:
Alfred Yeung
Partner, Deloitte China Financial Services Industry
Market Leader
Dora Liu
Partner, Deloitte China Financial Services Industry
Mike Shi
Partner, Deloitte China Financial Services Industry
Lorraine Gu
Partner, Deloitte China Financial Services Industry
Jeff Tao
Partner, Deloitte China Financial Services Industry
Juliet Li
Partner, Deloitte China Financial Services Industry
Jason Guo
Partner, Deloitte China Financial Services Industry
Calvin Zeng
Partner, Deloitte China Financial Services Industry
David Yau
Partner, Deloitte China Enterprise Risk Services
Jessica Ling
Partner, Deloitte China Enterprise Risk Services
Adrian Lee
Partner, Deloitte China Enterprise Risk Services
Norman Sze
Managing Partner, Deloitte China Consulting
Jungle Wong
Partner, Deloitte China Consulting
Peter Pang
Partner, Deloitte China Consulting
Jennifer Xie
Partner, Deloitte China Clients and Markets
Zhigang Xu
Partner,Deloitte China Clients and Markets
Benny Cheung
Partner, Deloitte China Financial Services Industry
Yao Zhao
Partner, Deloitte China Financial Services Industry
Wendy Yang
Partner, Deloitte China Financial Services Industry
Leon Fan
Partner, Deloitte China Financial Services Industry
Christine Hu
Partner, Deloitte China Financial Services Industry
Jennifer Qin
Partner, Deloitte China Financial Services Industry
Tonny Xue
Partner, Deloitte China Enterprise Risk Services
Ye Fang
Partner, Deloitte China Enterprise Risk Services
Jason Li
Partner, Deloitte China Enterprise Risk Services
Alvin Ng
Partner, Deloitte China Financial Services Industry
Consulting Leader
Alan Wang
Partner, Deloitte China Consulting
Po Hou
Partner, Deloitte China Consulting
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 62
James Wang
Partner, Deloitte China Consulting
Albert Liu
Partner, Deloitte China Consulting
Brian Shniderman
Principal, Payments Practice Lead, Deloitte
Consulting
Rakesh Kumar
Principal, Deloitte Consulting LLP
Alda Lee
Senior Manager, Deloitte Consulting LLP
Cynthia O'Brien
Manager, National Audit Practice, Deloitte &
Touche LLP
Jerry Ma
Senior Manager, Deloitte China Financial Services
Industry
Lianyong Song
Senior Manager, Deloitte China Technology, Media
& Telecommunications
Li Guo
Associate Director, Deloitte China Consulting
Nina Luo
Associate Director, Deloitte China Consulting
Yating Liu
Associate Director, Deloitte China Consulting
Hans Deng
Manager, Deloitte China Financial Services Industry
Xian Wu
Manager, Deloitte China Technology, Media &
Telecommunications
Weldon Lu
Partner, Deloitte China Consulting
Stanley Dai
Partner, Information Technology Lead, Deloitte
China Consulting
Ramnik Bajaj
Principal, Deloitte Consulting LLP
Divakar Goswami
Manager, Strategy & Operations, Deloitte Consulting
Sheila Celata
Senior Manager, National Audit Practice, Deloitte &
Touche LLP
Jensen Zhao
Director, Deloitte China Technology, Media &
Telecommunications
Eva Sun
Senior Manager, Deloitte China Financial Services
Industry
Zhaoli Meng
Senior Manager, Deloitte China Technology, Media
& Telecommunications
Jian Feng
Associate Director, Deloitte China Financial Services
Industry and Information Technology
Susan Yang
Associate Director, Deloitte China Consulting and
Information Technology
Keat Lee
Associate Director, Deloitte China Consulting
Michael Wang
Manager, Deloitte China Financial Services Industry
Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 63
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Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 64
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Trends and Prospects of Mobile Payment Industry in China 2012-2015 - Creating Innovative Models, Boosting Mobile Financial Services 65
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Suite 605, International A Area, EAC
No. 18 Jiaogong Road, Hangzhou, China
Postal Code: 310013
Telephone: + 86 (571) 2811 1900
Fax: + 86 (571) 2811 1904
Harbin
Deloitte Management Advisory (Shanghai)
Limited, Harbin Branch
Suite 1618, Development Zone Management
Building
No. 368 Changjiang Road, Nangang District, Harbin
Postal Code: 150090
Telephone: +86 (451) 8586 0060
Fax: +86 (451) 8586 0056
Hong Kong
Deloitte Touche Tohmatsu
35/F One Pacific Place
88 Queensway, Hong Kong
Telephone: + (852) 2852 1600
Fax: + (852) 2541 1911
Jinan
Deloitte Advisory (Shanghai) Company
Limited, Jinan Liaison Office
Unit 1018, 10/F, Tower A, Jinan CITIC Plaza
No. 150 Luoyuan Street, Jinan, China
Postal Code: 250011
Telephone: + 86 (531) 8518 1058
Fax: + 86 (531) 8518 1068
Macau
Deloitte Touche Tohmatsu
19/F The Macau Square, Apartment H-N
No. 43-53A Av. do Infante D. Henrique
Macau
Telephone: + (853) 2871 2998
Fax: + (853) 2871 3033
Nanjing
Deloitte Touche Tohmatsu CPA Ltd.
Nanjing Branch
11/F Golden Eagle Plaza
No. 89 Hanzhong Road, Nanjing, China
Postal Code: 210029
Telephone: + 86 (25) 5790 8880
Fax: + 86 (25) 8691 8776
Shanghai
Deloitte Touche Tohmatsu CPA Ltd.
30/F Bund Center
No. 222 East Yan An Road, Shanghai, China
Postal Code: 200002
Telephone: + 86 (21) 6141 8888
Fax: + 86 (21) 6335 0003
Shenzhen
Deloitte Touche Tohmatsu CPA Ltd.
Shenzhen Branch
13/F China Resources Building
No. 5001 East Shennan Road
Shenzhen, China
Postal Code: 518010
Telephone: + 86 (755) 8246 3255
Fax: + 86 (755) 8246 3186
Suzhou
Deloitte Business Advisory Services (Shanghai)
Limited
Suzhou Branch
23/F, Building 1, Global Wealth Square
No. 88 Suhui Road, Industrial Park
Suzhou, China
Postal Code: 215021
Telephone: + 86 (512) 6289 1238
Fax: + 86 (512) 6762 3338/6762 3318
Tianjin
Deloitte Touche Tohmatsu CPA Ltd.
Tianjin Branch
30/F, Office Building, The Exchange
No. 189 Nanjing Road, Heping District
Tianjin, China
Postal Code: 300051
Telephone: + 86 (22) 2320 6688
Fax: + 86 (22) 2320 6699
Wuhan
Deloitte Advisory (Shanghai) Company
Limited
Wuhan Liaison Office
Unit 02, 38/F New World International Trade
Tower
No. 568 Jianshe Avenue, Wuhan, China
Postal Code: 430022
Telephone: + 86 (27) 8526 6618
Fax: + 86 (27) 8526 7032
Xiamen
Deloitte Advisory (Shanghai) Company
Limited
Xiamen Liaison Office
Unit E, 26/F International Bank Tower
No. 8 Lujiang Road, Siming District, Xiamen,
China
Postal Code: 361001
Telephone: + 86 (592) 2107 298
Fax: + 86 (592) 2107 259
Taipei
Deloitte & Touche, Taipei Branch
12th Floor, Hung Tai Financial Plaza
156 Min Sheng East Road, Sec. 3
Taipei 10596, Taiwan, ROC
Telephone:+886 (2) 2545 9988
Fax:+886 (2) 2545 9966
Hsinchu
Deloitte & Touche, Hsinchu Branch
6th Floor, Allied Association Industries
2 Prosperity Road I
Hsinchu Science-Based Industrial Park
Hsinchu 30078, Taiwan, ROC
Telephone :+886 (3) 578 0899
Fax:+886 (3) 577 2218
Taichung
Deloitte & Touche, Taichung Branch
27th Floor, Long Bon World Trade Building
160 Taichung Kan Road, Sec.1
Taichung 40354, Taiwan, ROC
Telephone :+886 (4) 2328-0055
Fax:+886 (4) 2328 0700
Tainan
Deloitte & Touche, Tainan Branch
13th Floor, Chyng Tian Building
77 Chung Hwa East Road, Sec. 2
Tainan 70155, Taiwan, ROC
Telephone :+886 (6) 289 6849
Fax:+886 (6) 289 6848
Kaohsiung
Deloitte & Touche, Kaohsiung Branch
20th Floor, Cathay Life Chung Cheng Building
2 Chung Cheng 3rd Road
Kaohsiung 80052, Taiwan, ROC
Telephone: +886 (7) 238 9988
Fax:+886 (7) 237 1789
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In the Chinese Mainland, Hong Kong and Macau, services are provided by Deloitte Touche Tohmatsu, its affiliates, including Deloitte
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2012 Deloitte Touche Tohmatsu CPA Ltd.
Contacts
If you have any questions about the content of this report or wish to have further communication
with Deloitte, please contact:
Dr. Richard Li
Senior Manager, Deloitte China FSI Center of Excellence
Tel: +86 10 8520 7031
Mobile: +86 186 1112 1022
Email: ricli@deloitte.com.cn
Dr. Jessica Hu
Director, Deloitte China Technology, Media & Telecommunications
Tel: +86 10 8512 5314
Mobile: +86 186 0100 1009
Email: jesshu@deloitte.com.cn