China represents over half a billion smart phone owners and users, which indicates strong growth for NFC, according to a new report compiled by Timetric’s Cards and Payments Intelligence Center.
Growth in contactless mobile payments (m-payments) is expected to increase in China, as retailers and mobile operators are persistent in promoting contactless technology as part of their efforts to up customer experience sustain their Chinese customers, according to the report.
Apple, Samsung, Huawei, and Xiaomi have all launched NFC mobile payment solutions in 2016, in association with China UnionPay.
“By partnering with new entrants to the payments market, CUP is looking to strengthen its position in proximity consumer payments in China,” says Kartik Challa, analyst at Timetric.
“CUP is, however, facing strong competition from e-commerce giants Alibaba and Tencent,” he adds.
It is also being suggested that E-commerce giants are behind the Chinese drive online and mobile payments.
Unlike developed markets such as the U.S., where payments and tech companies hold the majority share of online and mobile payments, the opposite is true in China as e-commerce companies lead the way.
Alipay, a payment solution by Alibaba, represents approximately 70 percent of China’s third-party mobile payments and 50 percent of online payments.
“Consumer awareness and willingness to make online purchases on mobile devices is on the rise even in China’s remote areas, primarily because of underdeveloped brick and mortar retail outlets, availability of low-cost smart phones and robust logistic infrastructure,” comments Challa.