The mobile payment market in China is expected to grow dramatically in the next two years, with the number of users exceeding 100 million by 2011, according to The Global Times.
IT research firm Analysis International reports that last year there were 72.8 million mobile payment subscribers in China, of which only 27.16 million used NFC-enabled contactless payment. This year, however, that latter number is expected to nearly double to 49.16 million contactless users, pushing the whole mobile payment community past 100 million.
According to analyst Li Wei, last year, the mobile payment market in China was worth $293 million. This year it is expected to jump to $441 million, and 2011 could see a further increase to $771 million.
“The on-the-spot mobile payment will create a market with great growth potential in China. We are looking it as one of our most bourgeoning income sources during the next few years,” said Gao Xiang, VP of Watchdata System, the world’s 5th largest SIM provider.
Watchdata has already sold over 500,000 mobile payment SIM cards this year, and is expected to ship 700,000 more by the end of 2010, earning the company $14.73 million in revenue.
According to Global Times, 785 million people are now using mobile phones in China – just over half of the population – many of whom are not accustomed to using bank cards for transactions. Mobile payment therefore offers a natural alternative to cards and cash, and we can expect to see solid market growth in China over the next few years.
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