NEWSBYTE Half of all the world’s digital payments take place in China, according to new research.
The report, China FinTech Market – Growth, Trends, and Forecast (2019-24) has been published on Researchandmarkets.com. It finds that in 2017, almost half of the world’s total digital payments were made in China, via apps such as Ant Financial’s Alipay and Tencent’s WeChat, with the latter also used by citizens as a social and communications platform.
“Payment platforms, which largely derive their user base from thriving e-commerce and social media platforms, by far dominate the FinTech space in China,” explains the report.
Digital payments’ total transaction value amounted to $1.27 billion in 2018, says the report, with digital commerce racking up $855 million as the biggest segment.
With the report predicting that the total transaction value of the Chinese FinTech market will grow at a compound annual growth rate (CAGR) of 19.2 percent over the next five years, it is likely that at least half of all digital payments are now carried out in the country.
Total FinTech investments in Asia rose to a new record of $8.6 billion in 2016, continues the report, although the number of deals fell by more than eight percent.
The reason is that more than half of the region’s FinTech investments in that year stemmed from a single deal: Ant Financial’s $4.5 billion funding round, which came principally from state-backed investors.
Other Chinese FinTech players include: ZhongAn; Du Xiaoman; Qufenqi; Lufax; Qudian; Suning Financial Services; OneConnect Financial Technology; Dianrong; and WeLab.
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