China Digital Wallet market was valued at US$12,803.767 million in 2019. The high penetration rate of smartphones and faster internet connectivity is the major contributing factor for the booming digital wallet market in China. According to the latest 2020 statistics by the People’s Bank of China (PBOC), the number of electronic payments processed by country’s banks surged by 6.3% compared to the same period in 2018. In March 2020, 776.08 million people were using mobile payment in China. The shortage of point-of-sale (POS) machines, as well as ATMs as compared to the country’s mushrooming population, is also encouraging the usage of digital wallets to make cashless payments, thereby driving the market growth. Digital wallet systems from WeChat and Alipay are being increasingly used by people who are in need of quick and easy transactions. The booming e-commerce industry is another driver of digital wallet market in China. Stricter regulations regarding scan-and-go payments in order to maintain secure and safe transactions will further encourage the use of digital wallets in China during the forecast period.
The recent COVID-19 pandemic in China has caused a further increase in the usage of various digital wallets. With government regulations of strict social distancing, people have started using mobile payment, QR payment, and online payment, making every transaction cashless and touchless which has positively impacted the market growth of digital wallet in the country. Furthermore, the country is set to launch the world’s first digital currency under the digital currency/electronic payment (DC/EP) project which will be disbursed via a digital wallet.
China Digital wallet market has been segmented based on the device and application. By device, the market has been segmented as PCs/laptops and smartphones. By application, China digital wallet market has been classified into money transfer, recharge, movie booking, food ordering, and others.