Alternative payments lead China's e-commerce with 67.3% share

Bank transfers and payment cards hold a 14.9% share of e-commerce transactions.

Alternative payment methods like mobile and digital wallets dominate China's e-commerce sector, with a 67.3% share of total transactions in 2023, GlobalData reported.

Alipay and WeChat Pay emerged as the most popular alternative payment methods due to their simplicity and convenience.

Following alternative payments, bank transfers and payment cards hold a 14.9% share of e-commerce transactions in 2023.

Moreover, credit cards were preferred over debit cards for their additional perks like interest-free installment options, rewards, cashback, and discounts.

The report also forecasts a robust 11.9% growth in China's e-commerce market for 2024, reaching a total value of $2.4t (CNY17t). It is projected to continue with a 10.9% compound annual growth rate (CAGR) until 2028, culminating in a market value of $3.6t (CNY25.7t).

 “Chinese e-commerce market, the largest in the world, experienced sustained growth over the past few years driven by rising internet and smartphone penetration, availability of secure online payment systems, and increasing number of online shoppers,” said Poornima Chinta, senior banking and payments analyst at GlobalData.

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The Chinese government has previously initiated strategies, including a three-year plan launched in August 2023, aimed at bolstering e-commerce in rural areas through infrastructure development.

“The Chinese e-commerce market is expected to continue its upward growth trajectory supported by the government initiatives and growing consumer preference for online shopping,” said Chinta.

“Alternative payment solutions are likely to continue their dominance driven by their growing userbase and increasing online merchant acceptance,” he added.