China pulls further ahead of US in mobile payments with record US$12.8 trillion in transactions
China’s cities are ‘closest to cashless consumer economies’ as mobile payments surged to a record amount in the 10 months to October last year
Mobile payment transactions in China reached a record 81 trillion yuan (US$12.8 trillion) from January to October last year, driven by the vast number of consumers across the country who have looked beyond credit cards to more convenient, cashless systems.
The 10-month total surpassed the 58.8 trillion yuan in mobile payment transactions on the mainland during the whole of 2016, according to the latest official figures from the Ministry of Industry and Information Technology reported earlier by Xinhua News Agency.
China’s latest tally dwarfed the estimated US$49.3 billion in total mobile payment transactions in the United States last year, according to data from eMarketer.
China’s mobile payments boom has been powered by the fast adoption of online retail, financial and on-demand services, such as ride-sharing activities, in the world’s largest internet and smartphone market.
Mobile payments are used for a wide range of transactions, from paying for smartphone game upgrades and ordering takeaway food online to purchasing movie tickets and sending electronic hongbao – red packets with cash as gifts.
Popular mobile payment apps, such as WeChat Pay and Alipay, have enabled consumers, including those in rural areas, to go straight from cash to smartphone, leapfrogging the use of credit cards and cheques.