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China

Mobile Commerce Clusters

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Mobile Commerce Clusters
Measures partnerships among banks, mobile networks, and governments.
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Environment

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Environment
Measures economic, technological, and demographic factors within a market.
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Infrastructure

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Infrastructure
Measures the sophistication and penetration of the mobile phone industry and NFC terminalization.
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36.5

Consumer Readiness

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Consumer Readiness
Measures how familiar with, how willing to use, and how frequently consumers are currently using all three types of mobile payments.
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Financial Services

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Financial Services
Measures the effectiveness and penetration of consumer financial products.
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Regulation

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Regulation
Measures legal and regulatory structures and how they affect businesses.
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Summary

China's score of 36.5 in the MasterCard Mobile Payments Readiness Index is driven by its strong Infrastructure and Consumer Readiness. The Financial Services industry has not penetrated consumers as well as mobile phones; partnership may be the key to developing mobile payments into a mainstream payments option.

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What you need to know:

Chinese consumers are presently above-average users of mobile payments
The mobile infrastructure currently surpasses the financial services infrastructure
POS payments (10%) lag behind m-commerce (19%) in frequency of use

Country Overview

Market Forces

The annual investment in telecommunication services in China is very high, and consumers' significant appetite for mobile payments can only help China's long-term prospects. That is why partnering with the telecom industry is a smart move for Chinese banks: The number of mobile phones as a percentage of the population aged 15 to 64 is roughly three times as high as payment cards

for the same age group. This means that by working with mobile networks, the financial services industry can expand its reach and build relationships with a wider array of consumers. In addition, banks can use their relationships with merchants to expand the use of mobile payments at the point of sale and develop more robust mobile payment options.

By working with mobile networks, banks can expand their reach and build relationships with a wider array of consumers.

Consumer Sentiment

Chinese consumers are using mobile payments mainly for Internet purchases and P2P payments. M-commerce is the most popular form of mobile payments, followed by P2P and POS. Point-of-sale payments do have a bright spot, however: Chinese consumers are more willing to use their phones at the point of sale than they are familiar

with how it works. This suggests that consumers see the value, but aren't aware of products that allow them to act on the idea. With marketing and product education efforts, China could see significant lift in the number of consumers using phones at the point of sale.

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GLOBAL PERSPECTIVE ON CONSUMER SENTIMENT IN CHINA

Relative to the Index average and leading countries, how do consumers feel about mobile payments?

54% - France
Country Score Index Average Leading Country

MasterCard Conclusion

M-commerce and P2P payments are most popular with consumers, but there are steps that can be taken to increase the popularity of mobile payments in China. The potential for collaboration between Chinese banks and telecommunication companies could provide benefits for consumers and businesses alike by bridging the gaps that exist and extending the reach of the financial services industry further into China. Properly executed, these partnerships could set the stage for mobile payments to be front and center in China for years to come.

36.5
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