Alipay, Wechat Pay make USD 2.9 trln online payments in China

Friday 21 April 2017 10:21 CET | News

Alipay and Wechat Pay have enabled USD 2.9 trillion in Chinese digital payments in 2016, representing a 20-fold increase over the past four years, a new study from United Nations reveals.

The data shows that digital payments, using existing platforms and networks, provide access to a wider range of digital financial services, expanding financial inclusion and economic opportunity throughout China and neighboring countries.

The shift from cash to digital payments could increase GDP across developing economies by 6% before 2025, adding USD 3.7 trillion and 95 million jobs, according to a McKinsey Global Institute report.

Platforms such as Alibabas Yue Bao make investing in financial products more accessible for lower-income people. From 2013 to 2016, Yue Bao, Alipays personal saving and investment platform, has grown to manage USD 117 billion and is now serving over 152 million customers.

Digital finance helps increase access to capital for small merchants, the report stated. As of September 2016, a total of USD 107.3 billion had been lent on the Alipay platform to over 4.11 million small and micro enterprises and entrepreneurs.

The study also found both Alipay and Wechat are expanding beyond China and investing in major fin-tech and payments providers around the world. The report found opportunities especially strong in countries with a high smartphone uptake and collaboration between the private and public sectors.

Both Ant Financial and Tencent have bought into the Indian mobile payments market, which sees rapid growth under new regulation. Ant Financial and Alibaba invested up to USD 900 million in PayTM, as well as sharing staff and technical expertise. The result is that PayTM has grown from five million to around 200 million users in the last few years.

In South Africa, 78% of all Internet traffic takes place over mobile channels, one of the highest rates in the world. However, when surveyed in 2016 only 15% of South Africans reported making a purchase on a mobile phone in the preceding month. Indonesia and South America are other markets where significant growth of transition to digital payments will take place as well, says the report.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: Alipay, WeChat Pay, online payments, China, digital payments, study, increase
Categories: Payments & Commerce
Countries: World
This article is part of category

Payments & Commerce

Industry Events