B2B Payments in China: The Sky’s the Limit

by Hua Zhang, December 9, 2013
Industry Trends
Asia-Pacific

Abstract

B2B electronic payments will reach US$47 billion in 2013, accounting for 5.1% of B2B e-commerce transactions. Celent estimates that the total transaction volumes of e-commerce, B2B e-commerce, and B2B electronic payments will amount to US$1.8 trillion, US$1.4 trillion, and US$140 billion, respectively, in 2015.

The B2B payment market is relatively competitive. In the report B2B Payments in China, Celent examines the market size, business models, strategies and trends in this emerging, but rapidly growing market.

B2B payment providers have developed individualized strategies to stay competitive in the marketplace. 99Bill Corporation has positioned itself as an “electronic financial service provider” and plans to provide mutual fund management solutions for more traditional industries. The international payment giant PayPal, a subsidiary of eBay, has expressed its intention to become the first foreign enterprise to obtain China’s electronic payment license. Gopay is China's only state-owned payment platform for ministries and their subordinate institutions, and is able to provide adequate security for funds transfers by customers. China UnionPay has launched a B2B online payment service for the public sector via its public payment platform.

Source: China E-business Research Center, Celent estimates

“B2B payment vendors have focused on strengthening their services in the areas of cross-border payments, foreign exchange settlement, foreign exchange risk management, and collaboration with more foreign partners,” says Hua Zhang, Analyst with Celent’s Asian Financial Services practice and author of the report.

This report provides an overview of China’s B2B payment market, profiling the leading B2B providers in China. It also examines the industry’s growth potential.

A Chinese version of the report is also available.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Market Size

3

 

Key Challenges in the B2B Payment Market

4

B2B Electronic Payment Strategies of Vendors

5

 

Alipay

6

 

Gopay

6

 

Toocle

6

 

99BillCorporation

7

 

ChinaPNR

8

 

IPS

9

 

China UnionPay Online

10

 

Bank of China

11

 

Mingsheng Bank

11

Trends in B2B Electronic Payment

13

 

Cross-Border Payments

13

 

Internet Marketplaces Moving Towards Online Transactions

13

 

Differentiated Positioning

14

 

Digging Deep into Advantageous Industries                                       

14

 

Testing the Waters in the Mutual Funds Business

14

 

Internet Service Providers Becoming Financial Service Providers

14

 

Banking in the E-Commerce Market

15

 

An Integrated Pattern of Flow for Information, Materials, and Funds

15

 

Offline Payments

15

Leveraging Celent’s Expertise

17

 

Support for Financial Institutions

17

 

Support for Vendors

17

Related Celent Research

18

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