What happened: The number people in China who user a mobile phone for payment surged in 2018, according to a new statistical report from China Internet Network Information Center (CNNIC).
Last year, about 583 million people used mobile payment in China, up 10.7% from 2017, and nearly 68% of China’s Internet users used a mobile wallet for their offline payments. Moreover, approximately 600 million people used online payment in 2018, up 13 % over 2017.
The report also shows that about 406 million people ordered food online last year, an increase of more than 18% from 2017, and about 397 million people placed their online order via a mobile device.
Why it’s important: China is ahead of the curve compared to the rest of the world when it comes to mobile payment adoption. The rapid smartphone adoption and the lack of alternative payment methods such as credit cards provided a fertile ground for China’s payment revolution. Six in ten of the world’s mobile payment users live in China, according to market research firm eMarketer’s recent estimates.
The Chinese payment duopoly, Alibaba and Tencent, have set their sights on the markets outside of their home turf, including South East Aisa, Europe, and North America.