Mobile Payments Apps Continue To Dominate Chinese Market

According to a recent Nielsen data release, 99 percent of Chinese online shoppers are now using mobile payments apps. An impressive figure, though perhaps not a shocking one, given that 96 percent of Chinese shoppers reported using mobile apps when the same survey was done last year.

The survey of 5,000 consumers found that 81 percent of survey respondents said mobile was their preferred method for online shopping, as opposed to 59 percent via desktop computer and 57 percent using laptops.

The majority of Chinese mobile payments happen through one of two platforms: Alibaba’s Alipay and Tencent’s WeChat Pay. However, Alipay is being used more frequently for brands’ online shops. WeChat Pay has been somewhat less successful in recruiting brands, particularly luxury brands. There has been some evidence that there is some motion in that trend. Cartier is available through a WeChat shop, while Dior and Bulgari recently hosted temporary online WeChat events for the Qixi Festival (Chinese Valentine’s).

Mobile is also increasing its crossover into brick-and-mortar retail; Alibaba is leading that charge, especially among international retailers hoping to attract Chinese tourists.

Earlier this year, Alipay launched a European expansion that allows Chinese shoppers to purchase items from participating retailers via scanned mobile barcodes. That app also acts as a discovery tool by making recommendations on where to shop, eat and stay.