Eight Key Factors Shaping China's e-Payment Market

This series of blog posts were originally written by Boaz Rottenberg as an article for Ischam, the Israeli Chamber of Commerce in China.


China is in the midst of a major shift to electronic commerce. In recent years we have seen a dramatic increase in the adoption of electronic payment cards in China, an initial growth spurt of the credit card market, and the emergence of internet giants such as Alibaba and Taobao.

 

The following are the key factors shaping the development of China's e-commerce and online payment markets today. These factors are crucial to understand how China's e-commerce market developed to date, and what are the obstacles facing incumbent players and newcomers to this market in the future.

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1 360 Million Internet Users
2 Chinese Internet Users and the Role of Internet Cafes
3 Taobao and the Dominance of the Alibaba Group
4 A Late Start to Electronic Payments
5 Bankcards Issued: 1.8 billion
6 Credit Card Use Remains Low; POS Terminals Limited
7 Bankcards Used in a Quarter of Consumer Spending
8 Consumers Still Favor Cash