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Digitimes Research: NFC-based mobile payments will struggle to replace 3rd-party e-payments in China

Benson Wu, DIGITIMES Research, Taipei 0

While the launch of Apple Pay services in the China market on February 18, 2016 has stimulated use of NFC-based mobile payment services, NFC services will find it difficult to replace third-party e-payments, such as Baidu Wallet, Alipay, TenPay and YeePay, mainly because NFC-enabled POS devices are not deployed widely enough and only high-end and some mid-range smartphone models support NFC, according to Digitimes Research.

The total transaction value of NFC- and 2D barcode-based mobile payment services in the China market in 2015 reached CNY108.2 trillion (US$17.22 trillion), hiking 379% on year, Digitimes Research indicated. However, providers of third-party e-payment services offered subsidies to maintain their user bases and market shares.

For NFC-based mobile payment services, banks tend to play a role of increased importance, and in contrast mobile telecom carriers are losing influence in the market. In addition, growing use of NFC-based mobile payment services is expected to result in a reshuffle of market shares among smartphone vendors.

Content from this article was part of a complete Digitimes Research Chinese-language report that has not yet been translated into English. If you are interested in an English version of the report or wish to receive more information about the report, click here to contact us and we will get back to you as soon as possible. Digitimes Research also provides quarterly tracking services for market sectors such as China Smartphone, China Smartphone AP, Taiwan ICT and Taiwan FPD. Click here for more information about Digitimes Research Tracking services.

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