Increasingly more, Chinese buyers are using mobile payment systems to make their purchasing.
Online banking allows customers to have access to banking services without restriction by time and region. Through mobile banking, users are able to satisfy their needs to check their bank status, make bank operations or payments anytime and anywhere.
The penetration of mobile payments has driven a change of the purchasing habits of Chinese online consumers. Around 80% of China’s online users access to the web via their mobile devices and most of the consumers make the payment of their purchasing through mobile banking.
In China, the mobile payments have increased up to 255% year-over-year in the first quarter of 2014, accounting $623 billion. Because of the mobile payments popularity, online payments grew 33.8 percent year over year to $46 trillion through 7.07 billion transactions.
In the second quarter of 2014, the value of online total transactions was USD $299 billion. Alipay is the most popular online payment platform in China with 48.8% market share. Alipay has received USD $146 billion in payments in the second quarter of 2014.
E-banking business in China has grown up to 7.2% year-on-year during five straight years. In 2014 the percentage of personal e-banking clients represented around 43% as reported by China Financial Certification Authority.
M-banking is the future of online banking in China
A survey by China Financial Certification Authority said that 35.6% customers utilize online banking while 17.8% of them use mobile banking. Besides, around 12.9% consumers have access to e-banking services via phone banking and 6.8% of them utilize WeChat banking account.
The growing number of online platforms has allowed access to e-banking services. The percentage of consumers who utilize online e-banking as their only e-banking channel increased up to 9% year-on-year. In 2014 this percentage represented 34% e-banking consumers, which shows that customers are using more channels to have access to their banking services.
The number of mobile banking clients increased 50% year-on-year. This channel has grown in China for a fourth consecutive year. The research shows that mobile banking is at a crucial moment due to the long-distance and the payment systems in demand.
The China Financial Certification Authority expects that mobile banking customers will account by around 24.1% of the total e-banking users in 2015 and 40% of them will buy financial products through their smartphones.
Around 83% of mobile banking users employ habitually e-banking services due to their accessibility and usefulness. Nonetheless, a majority of customer just utilize it as a complementary method to online banking because only 3% users use mobile banking as their unique e-banking channel.
Some 72% of consumers believe that related to financial security, online banking is the most secure channel while 15% of them see mobile banking as the most secure. In addition 6.2% of users have voted to phone banking and 5.1% to SMS while only 1.6% of them have inclined toward WeChat banking.
Mobile banking is more about buying tickets and lottery
In 2014, the most popular and used services of mobile banking were: checking accounts, bank transfers and mobile payments. In addition, payment of mobile fees and paying for film tickets and lotteries were the favorite non-financial services of mobile banking.
Related to the regional distribution, it has increased 56% and 72% year-on-year the number of mobile banking customers who live in first-tier and second-tier cities respectively. Nowadays, the mobile banking users from first-tier cities represent 25% of the total, while 19% are from second-tier cities.
More than 74% of users have access to e-banking services via Android smartphones and only 26% of them through iOS devices.
The previous data show an increasing tendency of users to use mobile banking. The fact that 61% of customers have accessed habitually to these services during the past year confirm the importance of online banking channels.
In China the top three banks used via online were Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB) and China Merchants Bank (CMB).
The mobile payment is increasingly more popular due to the e-commerce and mobile internet penetration. Alipay has become the biggest mobile payment platform over the world and WeChat payment is gaining popularity among China mobile payment users.
If you are interested to understand the Chinese purchasing habits, don’t hesitate to contact us.
- Mobile banking users increased by 50% year-on-year in 2014
- The war between WeChat payment and Alipayment is far from over
- Chinese consumer habits.
- Monetization of Wechat
- The Social Media Network war in China