Non-bank payment institutions refer to institutions engaged in payment services, fund clearing, electronic payment and other businesses in addition to traditional banking institutions. These institutions include third-party payment institutions such as Alipay, WeChat Pay, and UnionPay, which provide convenient payment services for individuals and enterprises through the Internet, mobile communication and other technical means.
On December 17, the Regulations on the Supervision and Administration of Non-bank Payment Institutions (hereinafter referred to as the "Regulations") were officially promulgated, which will come into force on May 1, 2024, improving business rules and strengthening supervision.
According to data from the People's Bank of China, as of the end of September 2023, there were 185 non-bank payment institutions in the country, and in 2022, more than 1 trillion payments were processed, with an amount of nearly 400 trillion yuan.
Feng Qiao, deputy general manager of Alipay, said that Alipay will further strengthen the protection of the rights and interests of financial consumers, insist on incorporating financial consumer protection into corporate governance, corporate culture and business strategy, and solidly improve the level of financial consumer protection.
Zheng Haojian, general manager of WeChat Pay (Tenpay), said that the promulgation of the "Regulations" has, on the one hand, improved the legal level of supervision of payment institutions, from the original departmental regulations to administrative regulations, marking the fundamental regulations of the payment industry, which is conducive to strengthening industry supervision, improving regulatory efficiency, and establishing regulatory authority;
Liu Xiaodong, general manager of Qian Daibao, said that the official promulgation and implementation of the "Regulations" is conducive to improving market expectations, enhancing development momentum, and the payment industry will develop in a healthier, more compliant and more sustainable direction.
Global third-party mobile payment competitive landscape: Tencent and Alibaba have a combined market share of nearly 95%
The competitive landscape of third-party mobile payment in mainland China has remained basically stable, with Alipay and WeChat occupying a leading position in the industry all year round, with a combined market share of more than 90%. According to Analysys data, in 2020, in the third-place mobile payment field, WeChat and Alipay combined market share of 94.4%. According to the revenue scale of Ant Financial and Tencent in the financial services sector, it is estimated that Ant Financial's market share in China's third-party mobile payment field will exceed 50% from 2017 to 2020, slightly higher than that of Tencent.
Since 2016, third-party payment institutions have begun to charge withdrawal fees, although there is a certain amount of free withdrawal, but for large withdrawals is a drop in the bucket, and merchants bear higher handling fees, and PayPal, as a global third-party payment system, has a transaction fee rate of 3.5% for Chinese merchants.
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