Maverick China Research – TRP Forum Six Key Issues About Mobile Payment in China Presenter: Edmund Hung March 19, 2008
#1: M-payment Potential Based on (Large) Numbers <ul><li>Large numbers => Large potential? </li></ul><ul><ul><li>550 milli...
#2: More Than Just a Complimentary Payment Channel <ul><li>“ Traditional” e-payment channels immature </li></ul><ul><ul><l...
#2: More Than Just a Complimentary Payment Channel <ul><li>Credit cards circulation in China, US (2007) </li></ul>
#3: Unclear Government Regulations <ul><li>Unclear regulations for “hot” payment services </li></ul><ul><ul><li>stored-val...
#4: CUP and CMCC Too Dominant for Industry?
#4: CUP and CMCC Too Dominant for Industry? <ul><li>CUP and China Mobile seek to develop new technologies and services in-...
#5: Payment Startups Looking to Fill Market Gap <ul><li>Funding by private investors  </li></ul><ul><ul><li>payment compan...
#6: M-payment Startups Cannot Build Industry Alone <ul><li>Investor funding will not last forever </li></ul><ul><li>Paymen...
<ul><li>Thank You! </li></ul><ul><li>Edmund Hung  </li></ul><ul><li>Director, Co-founder </li></ul><ul><li>[email_address]...
Upcoming SlideShare
Loading in …5
×

Trp Forum Presentation, Maverick China Research

874 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
874
On SlideShare
0
From Embeds
0
Number of Embeds
54
Actions
Shares
0
Downloads
12
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Trp Forum Presentation, Maverick China Research

  1. 1. Maverick China Research – TRP Forum Six Key Issues About Mobile Payment in China Presenter: Edmund Hung March 19, 2008
  2. 2. #1: M-payment Potential Based on (Large) Numbers <ul><li>Large numbers => Large potential? </li></ul><ul><ul><li>550 million mobile subs </li></ul></ul><ul><ul><li>8+ million new subs per month (last 6 mos.) </li></ul></ul><ul><ul><li>30% mobile user penetration </li></ul></ul><ul><ul><ul><li>400 million unique mobile users </li></ul></ul></ul>
  3. 3. #2: More Than Just a Complimentary Payment Channel <ul><li>“ Traditional” e-payment channels immature </li></ul><ul><ul><li>unified bank card network buildout since 2002 </li></ul></ul><ul><ul><li>only 50+ million credit cards issued </li></ul></ul><ul><li>Online payment developing without an established credit card network </li></ul><ul><ul><li>Cash-on-delivery for “e-commerce” </li></ul></ul><ul><li>User habits learning to use various types of e-payment at the same time </li></ul><ul><ul><li>online payment accessed via mobile </li></ul></ul>
  4. 4. #2: More Than Just a Complimentary Payment Channel <ul><li>Credit cards circulation in China, US (2007) </li></ul>
  5. 5. #3: Unclear Government Regulations <ul><li>Unclear regulations for “hot” payment services </li></ul><ul><ul><li>stored-valued and virtual currency accounts, prepaid cash cards, money transfer services </li></ul></ul><ul><li>Third-party payment licenses stalled </li></ul><ul><ul><li>Minimum registered capital </li></ul></ul><ul><li>Network standards and sharing plans yet to be established </li></ul><ul><ul><li>no CUP-type network and standards for mobile payments </li></ul></ul>
  6. 6. #4: CUP and CMCC Too Dominant for Industry?
  7. 7. #4: CUP and CMCC Too Dominant for Industry? <ul><li>CUP and China Mobile seek to develop new technologies and services in-house </li></ul><ul><li>Lack of competitive urgency to offer new, innovative services </li></ul><ul><li>Payment start-ups left with limited partners in China </li></ul>
  8. 8. #5: Payment Startups Looking to Fill Market Gap <ul><li>Funding by private investors </li></ul><ul><ul><li>payment companies, VCs </li></ul></ul><ul><li>Building the network from scratch </li></ul><ul><li>Subsidizing users with low/zero fees </li></ul><ul><li>Educating and nurturing change in user behavior </li></ul>
  9. 9. #6: M-payment Startups Cannot Build Industry Alone <ul><li>Investor funding will not last forever </li></ul><ul><li>Payment volume essential to profitability, but building a critical mass of users a tough task </li></ul><ul><li>Network standards and connectivity is crucial to promote adoption from users, merchants </li></ul><ul><li>No successful m-payment models to replicate in China; total uncertainty when it comes to develop business models and value chain </li></ul>
  10. 10. <ul><li>Thank You! </li></ul><ul><li>Edmund Hung </li></ul><ul><li>Director, Co-founder </li></ul><ul><li>[email_address] </li></ul><ul><li>+86 13511023604 </li></ul><ul><li>www.maverickchina.com </li></ul><ul><li>www.maverickchina.com/blog </li></ul>

×