Cited from Juniper Research, the volume of China’s mobile money transaction will exceed 200 Billion in 2024. It increases from 130 million in 2019. The main drive is domestic P2P payments. The amount of P2P transaction will amount to 80% of all domestic transactions in 2024.
Besides the P2P platform, the significant increase of domestic payment is also being driven by increasingly easy mobile payment systems. In developed markets, the digital wallet has made P2P payments far simpler. Their services include PayPal, Venmo and Cash App. Therefore, it enables low cost, fast and secure payments for a rapidly growing number of users.
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Meanwhile, in developing markets, mobile money provided by network operators is a key enabler of financial inclusion. They enable the unbanked to enter into the wider digital economy.
Social payments affect P2P Success
The same research found that the rise in social payments is driving growth in the mobile P2P channel. Payments via Venmo have a strong social element. It has boosted its popularity with millennials. The introduction of Libra by Facebook will further leverage social features. Thus, it boosts the potential of social payments in a vast addressable market.
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Chinese Market Leading for Now
Chinese transactions will account for 68% of the total volume of domestic mobile transfers in 2019. That because of the ‘red envelope’ phenomenon in China during the Chinese New Year.
Alipay and WeChat Pay have become a crucial part of the process. Moreover, it will drive future growth in this market. However, China’s share of the overall transaction volume will gradually fall. The research predicts a reduced 57% by 2024. At the same time, growth is fastest in Africa, while operator-driven mobile money solutions are boosting financial inclusion at a rapid rate.
With this significant amount of mobile payments, China will continue to be the world-leading cashless country. Chinese people’s appetite for digital payments, supported by startups that actively improve their technology made it easy for China to keep the crown.
