(Yicai Global) April 21 -- Driven by Alipay and WeChat Payment, last year saw the Chinese mobile payment market (Alipay and WeChat) valued at USD2.9 trillion, up 2,000 percent over four years, a recent report issued by the Better Than Cash Alliance under the United Nations says.
In addition to more digital financial services available for people, current platforms and network-based mobile payments offer more opportunities for inclusive finance and economic development for China and surrounding countries, the PR Newswire reported yesterday.
The report also notes that platforms such as Yu'E Bao offer access to various financial products for low-income groups. This encourages consumers to invest their account balances to amass long-term deposits. Yu'E Bao's business grew constantly from 2013 to 2016, and it now manages USD117 billion in funds and offers services to over 152 million users.
Digital finance greatly facilitates small enterprise financing. By September, Ant Financial Services Group subordinate to Alibaba had offered USD107.3 billion (CNY740 billion) in loans to over 4.11 million micro and small enterprises, as well as entrepreneurs.
Further, the Big Data these platforms generate is conducive to creating records for credit scoring. This enables consumers -- especially those in low-income groups without previous access to financial services -- to receive credit services.
Alipay and WeChat have been introduced to overseas markets, and have invested in some major fin-tech and payment suppliers worldwide, the report also notes. By allying with other major communication platforms, they drive up digital payment and inclusive finance by existing social media and e-commerce platforms.
Social networks and e-commerce are driving the boom in China's digital payments, Ruth Goodwin-Groen, president of the Better Than Cash Alliance, states in the report. When accessing financial services by mobile payment, consumers -- especially females -- can better arrange their deposits, accumulate assets, and react to financial shocks, and thereby better embrace opportunities to improve their living standard, and this will attract millions of consumers.
Its services significantly affect over a hundred million users, says Eric Jing, Ant Financial's chief executive. "This revolution is just the beginning, and we hold ever greater potential to attract more and more consumers worldwide into the financial system."