Abstract
ChinaPay is the online payment subsidiary of China UnionPay (CUP), China' s
government-backed inter-bank transfer network and credit card issuer. Founded
in 2000, ChinaPay' s seven years of operation make it one of the industry' s
elder statesmen. Leveraging the financial and marketing support of its parent
company, ChinaPay provides online payment, banking, and brokerage services, as
well as offline bill payment and POS terminals.
Key Findings:
- ChinaPay, a subsidiary of China UnionPay, enjoys strong backing from its
parent company. This backing comes in the form of deep pockets for ongoing
activities and technology, and most importantly a strong and trustworthy brand
name.
- ChinaPay is one of China' s few profitable third-party payment providers.
- Enjoys high transaction volume from online brokerage services.
- ChinaPay is one of China' s only third-party payment providers without a
registered user-base.
Table of Contents
1 Industry Overview: Key Factors Shaping Third-Party Payments in China
- 1.1 Continued preference for cash payments, but bank card payments rising
- 1.2 Credit card use remains low; debit cards widespread
- 1.3 Limited coverage of non-cash payment services
- 1.4 China UnionPay' s bank card monopoly
- 1.5 Quasi-online payment systems an interim solution
- 1.6 Two ISPs, 162 million Internet users
- 1.7 Two mobile operators, 500 million subscribers
- 1.8 Contactless smartcard use increasing but largely limited to buses and
subways
- 1.9 Government regulations and the "national interest"
2 ChinaPay - Providing Online Payment Solutions for Chinese Banks
- 2.1 Company Overview
- 2.1.1 Ownership
- 2.1.2 Organizational Structure
- 2.1.3 Management Team
- 2.2 Business and Financial Performance
- 2.3 Services, Channels, and Coverage
- 2.3.1 Online Banking
- 2.3.2 Self-service Payment Terminals
- 2.3.3 POS terminals
- 2.4 Market Size
- 2.5 Marketing and Branding
- 2.6 Partnerships
- 2.6.1 Bank Partners
- 2.6.2 Merchant Partners
- 2.6.3 Technology Partners
- 2.7 Competitive Analysis
- 2.8 Outlook
List of Figures
- Figure 1: Credit cards issued in China and in the US (M)
- Figure 2: Internet Users in China, 2001-2006 (M)
- Figure 3: Mobile Subscribers in China, 2002-2010F (M)
- Figure 4: China government groups involved in third-party payment
regulation
- Figure 5: China UnionPay organizational chart
- Figure 6: ChinaPay Payment Channels
- Figure 7: ChinaPay Online Payment Operation Model
- Figure 8: ChinaPay Online Payment Fee Structure
- Figure 9: Online Brokerage Operation Model
- Figure 10: ChinaPay Online Brokerage Fee Structure
- Figure 11: ChinaPay Bank Partners for Online Brokerage Service
- Figure 12: ChinaPay Fund Partners for Online Brokerage Service
- Figure 13: ChinaPay Online Bank Transfer Partners
- Figure 14: ChinaPay Self-service Payment Terminal
- Figure 15: ChinaPay Terminal Services
- Figure 16: ChinaPay e-POS
- Figure 17: Total CUP bank cards issued in China, 2005-2007F (M)
- Figure 18: ChinaPay Logo
- Figure 19: ChinaPay Bank Partners
- Figure 20: ChinaPay Key Merchant Partners
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