As a percentage of total spend, e-Commerce in China is still relatively small. Despite this, it’s the world’s biggest e-Commerce market – worth US$827 billion – and is set to grow to almost US$1.5 trillion by 2020.
With Internet access still at relatively low levels (57%) – most e-Commerce activity is centred in the main urban areas. However, rural e-Commerce is growing, with companies such as Alibaba Group investing in ‘rural hubs’ where they teach locals how to shop online.
China can probably be defined as a ‘market of idiosyncrasies’. From a digital perspective – most operators are unique to the market. Google is banned: Baidu is the main search engine. Weibo is the equivalent to Twitter, and Youku is the main online video platform. China even hosts the world’s largest online shopping event: China Singles’ Day.
So, although it offers huge opportunities – China does also present unique challenges for businesses looking to enter the market. Luckily we’re here to help.
China Payment trends
It’s probably no surprise that China’s preferred payment methods are unlike any other market. eWallets (such as Alipay and Tenpay/WeChat Pay) are huge – taking 60% market share. WeChat – the messaging app - is also popular – with WeChat Pay allowing customers to purchase within the app.
Unlike the West, Credit Card payments only account for 10% of e-Commerce payments in China. Even the most popular card schemes are different – with UnionPay dominating the market (96% market share). Visa and MasterCard, on the other hand, only account for 3% of e-Commerce card payments. But Card Schemes are expected to grow over the next few years.
Mobile commerce is also growing rapidly in China. Between 2014 and 2015, mobile payments grew by 33% - and we predict this will continue. So its key online businesses offer a mobile-optimised, simple and fast check-out process.
Our Expertise in China
Worldpay have been operating in China for over 3 years. Lead by Kok San Tang, our team have many years of experience with payments in the market. With our office based in Shanghai (as well as offices in Singapore and Tokyo) we are ideally placed to help you succeed in China – and across Asia-Pacific.
Whether you’re looking to expand your existing Chinese operations – or enter the market for the first time – understanding local payment preferences is key to success. Our team are here to help.
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We currently support e-Commerce payments in China and all other major markets in the region, including: Australia, India, Japan, Hong Kong, Malaysia, and Singapore.
Chinese Payment Preferences
If you’re unfamiliar with any of the popular payment methods in China...