Since Chinese Central Bank announced details of the third party payment licences, 17 companies have applied for the licenses.  (Here is an article about it in Chinese: http://tech.sina.com.cn/i/2010-12-30/02075043339.shtml)

As expected, they included Alibaba’s Alipay, Tencent’s Tenpay and government back China Unionpay.  In fact, four of China Unionpay’s subsidiaries are applying for the license.  Two of them base in Beijing.  One in Shanghai and one in Guangzhou.  Shanghai based 99bill is also in the list. So far, the government has not grant them the licences yet.  They are still in the process of application.

According to the Chinese article, there are over 130 companies providing third party payment services in China.  They have been providing such services for online shops, online game companies and other merchants for quite some time.  Their business expanded quickly in the recent years, as online retailers exploded in China.  A Beijing based payment solution companies told me their transaction volume increased 5 times from 2007 t0 2008 and another 3 times from 2008 to 2009.  Transaction fee is also getting lower and lower.  At the moment, Alipay charges about 0.3% for collecting online payment for merchants.

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

What you get

Full access to all premium content and our full archives

Members'-only newsletters

Preferential access and discounts to all TechNode events

Direct access to the TechNode newsroom

Start your free trial now.

Get instant access to all our premium content, archives, newsletters, and online community.

Monthly Membership

Yearly Membership

Sherman So

Author of Red Wired: China's Internet Revolution, the first book to completely survey the nature of China's internet. (http://redwiredrevolution.com/) She previously was the lead China technology reporter...