A new study by UN-based Better Than Cash Alliance has revealed that Alipay and WeChat Pay facilitated $2.9 trillion in Chinese digital payments in 2016
According to a recently published study by the UN-based Better Than Cash Alliance, Alipay and WeChat Pay enabled an astonishing $2.9 trillion in Chinese digital payments in 2016. A 20-fold increase in the past four years.
The report noted that digital payments through existing platforms, and networks, has provided access to a wider range of financial services and expanded financial inclusion and economic opportunity. The study also highlighted how digital finance has helped to increase access to capital for small merchants throughout China. As of September 2016, a total of $107.3 billion has been lent on the Alipay platform to over 4 million small and micro enterprises and entrepreneurs.
“In China digital payments are thriving from these channels, bringing millions of people into the economy. This matters because we know that when people – especially women – gain access to financial services, they are able to save, build assets, weather financial shocks, and have a better chance to improve their lives,” said Ruth Goodwin-Groen, Managing Director at Better Than Cash Alliance.
According to the study, payments on existing messaging and e-commerce platforms are set to increase China’s GDP by $236 billion by 2025, unlocking new economic opportunities for people and small businesses.
Eric Jing, CEO of Ant Financial Services Group, which operates Alipay, said,
“There is a quiet revolution underway, and we know, firsthand, that our services are making a real difference to hundreds of millions of consumers. But, as this groundbreaking UN report highlights, this revolution is only just beginning. We see tremendous potential to bring many more people into the financial system, in China and markets around the world.”
Today, China is the world’s leader in fintech and is far and away the biggest market for digital payments. AliPay and WeChat dominate with over 60% of the digital payments market share across China.