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Quarterly Report on China Online

Payment Industry

Q1 2012

Measuring Data on Q1 2012

Total GMV of China Online Payment

2

GMV of China online payment climbed 112.6% YoY, to 776 bn. RMB in Q1 2012,

yet growing only 1.2% quarter on quarter.

Note 1: Based on the seven payment transactions classified by People’s Bank of China, the data cover only online transaction of large-scale

enterprises. Transactions in money transfer, bank card receipts, mobile phone payment, etc. are excluded.

Note 2: Online payment refers to money transfer under clients’ online command for business transaction on the desktop or laptop.

Note 3: iResearch modified historical data based on the latest market landscape.

Source: The data is estimated according to interviews with enterprise personnel and experts and iResearch statistical forecast model.

365

457

616

767 776

3.2% 25.1% 34.8% 24.6% 1.2%

102.6% 117.6% 130.7% 116.8% 112.6%

0

200

400

600

800

1000

1200

11Q1 11Q2 11Q3 11Q4 12Q1e

China Online Payment GMV 11Q1-12Q1

GMV (bn) QoQ growth rate（%） YoY growth rate（%）

Online

Shopping

40.1%

Flight Ticket

16.8%

telecommunica

tion

6.9%

e-

CommerceB2B

4.1%

online gaming

3.3%

others

28.9%

Measuring Data on Q1 2012

Structure of Online Payment GMV

3

Online payment GMV for online shopping enterprises occupied remarkably less share compared with Q1 2012,

namely 40.1% of the overall GMV.

Air travel was in its off-season in Q1, but still grew steadily due to the increasing penetration rates.

Online gaming GMV rose slightly.

GMV of all the other segments of online industry grew more quickly than the above three. Meanwhile, traditional e-

commercialized financial fields such as insurance and funds will become the focus of the competition in the future.

Note 1: Based on the seven payment transactions classified by People’s Bank of China, the data cover only online transaction of large-scale

enterprises. Transactions in money transfer, bank card receipts, mobile phone payment, etc. are excluded.

Note 2: Online payment refers to money transfer under clients’ online command for business transaction on the desktop or laptop.

Note 3: 2012Q1 Online Payment of China Transaction Industry reaches RMB 776billion.

Note 4: iResearch modified historical data based on the latest market landscape.

Source: The data is estimated according to interviews with enterprise personnel and experts and iResearch statistical forecast model.

Structure of Online Payment GMV 12Q1

2C（including

B2C&C2C）

65.4%

B2B

34.6%

Companies' Performance in Q1 2012

4 Source: The data is estimated according to interviews with enterprise personnel and experts and iResearch statistical forecast model.

Note 1: Based on the seven payment transactions classified by People’s Bank of China, the data cover only online transaction of large-scale

enterprises. Transactions in money transfer, bank card receipts, mobile phone payment, etc are excluded.

Note 2: Online payment refers to money transfer under clients’ online command for business transaction on the desktop or laptop.

Note 3: 2012Q1 Online Payment of China Transaction Industry reaches RMB 776 billion.

Note 4: iResearch modified historical data based on the latest market landscape.

Alipay 47.8%

Tenpay 20.3%

Chinapay 9.1%

99Bill 7.6%

ChinaPnR 7.5%

YeePay 3.1%

IPS 2.8%

Others 1.9%

Structure of Third-party Online Payment Key Players' GMV

Online payment landscape in China was relatively stable in Q1 2012. Alipay took the

lead again, Tenpay came next, Chinapay, 99Bill, and Chinapnr ranked the third, the

fourth and the fifth respectively, while YeePay and IPS were in the sixth and the seventh

place.

Prediction for 2012

5

Profitability to be new priority for key players

Third-party payment industry in China has entered a new era of development.

iResearch estimates that influenced by the investors and operating cash flow, third-

party payment enterprises will shift their focus from expansion in sizes only to

profitability as well as expansion in sizes. Some enterprises will abandon

businesses with low profitability or with no profitability at all.

Traditional businesses come to maturity

Traditional businesses, represented by online shopping and online gaming come to

maturity. Blue ocean strategy focused on innovation, attracts most of the attention

of third-party payment enterprises.

Prediction for 2012

6

Compliance operation to facilitate speedy expansion of enterprises

In 2012, China third-party payment industry entered the supervision and control year.

Accompanied by the continual introduction of measures on compliance management

and the growing pressure of supervision and control, compliance operation will be the

theme for third-party payment industry.

Integrated payment methods to facilitate the adjustment in companies’ strategies

The integration of various online and offline payment services is taking its shape.

Online payment has become one among various choices for the internet users.

Legal Notices

7

The report is produced by iResearch Co., Ltd. All sentences, charts, tables and etc. in this

report are under the protection of relative law and constitution on property rights in

Peoples‘ Republic of China. The report may be used for informational purposes only. Without

iResearch‘s written authorization, any organization or individual is not allowed to use the

information in this report for any business purpose. Some sentences and statistics in this

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Statistics related to operators‘ revenue and market prediction are mainly obtained through

interview, marketing survey, secondary sources and etc., some of which have not been

confirmed by the related operators. In addition, statistics resulting from sample research in this

report are influenced by sample structure. Due to the limitation of research method, limited

sample and research sample, part of the result may not precisely reflect the situation.

Customers should use this report as only a reference material in making business decisions.

iResearch does not guarantee the accuracy of all statistics in this report.

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