50% of smartphone users in China will make mobile payments by 2020
A total of 195.3 million mobile users in China will be making proximity mobile payments this year, an increase of more than 45% compared to the previous year, according to a recent study by eMarketer.
Proximity mobile payments are payments made at the point of sale by tapping, swiping or checking in with a mobile phone. China is currently the largest and fastest-growing mobile payments market in the world. According to eMarketer, the U.S. market will have 37.5 million proximity mobile payment users this year.
The study projects that almost half of all smartphone users in the Asian country will be making proximity mobile payments by 2020.
“Despite having a higher penetration rate than the U.S., China’s proximity mobile payments market still remains largely untapped, with usage mostly concentrated in larger cities,” eMarketer forecasting analyst Shelleen Shum said.
“The phenomenal opportunity for retailers is that smartphone users in China are more willing to store payment information in their phones and are more willing to experiment with other forms of noncash payments than users in most other countries,” Shum said.
The study also predicts that smartphone buyers in China – people who make at least one purchase through a web browser or app during a calendar year – will reach 376 million this year, representing more than 72% of smartphone users.
“This widespread adoption is fueled by growing smartphone adoption, a shift in behavior toward smartphone usage and the expansion of ecommerce to rural areas,” Shum added. “In addition, leading players including Alibaba and JD.com have been investing in apps and online mobile payment systems that better serve mobile buyers.”
Singapore smartphone penetration surpasses 100% at the end of Q1
In other APAC news, smartphone penetration in Singapore reached more than 100% and mobile broadband subscriptions have passed 140% at the end of the first quarter of the year, according to Ericsson’s latest Mobility Report.
These figures are ahead of the Southeast Asian average penetration levels of around 40% and around 60%, respectively, Ericsson said.
Smartphone penetration in Singapore is expected to reach almost 130% in 2021, according to the study.
