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Increased Use of Mobile Phones to Pay for Goods in China

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Mobile payment services developed rapidly in China in 2012 with 546% year on year growth by trading value, while the number of people who used this service increased by 223%.

According to Chinese third-party Internet payment service provider Alipay, it has gradually become a habit for Chinese users to pay via mobile phones. In 2012, over 4.3 million people spent more money via mobile phones than PCs.

By regions, Shanghai, Beijing and Chengdu have the most Alipay users. However, small- and medium-sized cities have more mobile payment users.

By the ratio of mobile payments out of all payments completed on Alipay, Lhasa in Tibet ranked first, followed by Nyingchi in Tibet and Nanchong in Sichuan. In addition, among the top ten Chinese cities which have the most active mobile payment users, seven are in the western areas of China. The other three cities are Yunfu and Maoming in Guangdong province and Sanya in Hainan province.

Alipay noted that in small cities, the penetration of mobile phones is much higher than PCs and the penetration of mobile Internet is higher than broadband. Therefore, it is often more convenient for consumers to complete payments with mobile phones.

Alipay.com is an online payment subsidiary of Alibaba, the Chinese e-commerce giant.

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Tags: mobile commerce  China