According to the China Internet Network Information Center China currently has a
total of 137 million Internet users. This represents a staggering increase of 26
million or 23.4% in the past year alone.
The Chinese online payment market is developing rapidly. The market has grown
from RMB 900 million (USD 118.4 million) in 2001, to RMB 7.5 billion (USD 986.6
million) in 2006, demonstrating a CAGR of 102.7%. iResearch estimates that China
online payment market will keep increasing in the next few years and reach RMB
60.5 billion (USD 7.96 billion) in 2009.
In 2004, of the roughly USD 1 billion in online transactions paid by individual
users through Internet, virtual point cards accounted for 22.7%, followed by the
online purchase of air transportation at 20.0%, online shopping at 17.3%.
iResearch estimates that with the rapid development of online shopping and
travel, these two key categories will become the most important sectors of the
Chinese online payment market.
The number of Chinese online payment users is growing incredibly quickly, as the
modernization of China continues to unfold. Between 2001 and 2006, the CAGR of
people making online payments grew at the rate of 69.8%. iResearch estimates
that China online payment users will keep increasing in the next few years and
number 53.25 million by 2009.
Not surprisingly, the per capita amount spent online by Internet users is
tracking closely with the rise of Internet activity in general, demonstrating a
20.4% CAGR between 2001 and 2006, to reach RMB 408 (USD 53.48) in 2006.
iResearch calls for online payments to literally triple to USD 150 by 2009.
As eCommerce continues to become more sophisticated and catch up with the
Western World, non-government online payment platforms continue to pace the
market, accounting for roughly one-third of all transactions. The Chinese 'third
party' online payment platform market grew from USD 21 million in 2001 to USD
302 million in 2006, achieving a geometric CAGR of 143.1%. iResearch estimates
that the market will reach around USD 3 billion in 2009, and increase its share
of market to 36%.
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