Chinese e-commerce is growing rapidly and more payment processing options are emerging for eager merchants.
According to Want China Times China’s e-commerce growth has generated much discussion recently, and for good reason. In a prediction by global consulting firm Boston Consulting Group and Beijing-based media Caixin, 2020 will be the year of the trillion for china’s online shopping market. With a growth rate of 90% per year (compared to the US’s 17%) the enormous market potential is plane to see.
At the beginning of September Payment Magnates reported China’s broadband plan to expand e-commerce with a vision of country-wide broadband reach (from bustling cities to remote villages); since the reported numbers say that a mere 40% of the nation is currently able to access the internet, the online consumer potential is significant.
As a result, the obvious question to ask as e-merchants sitting beyond the fertile borders of China is: “How do I become a part of this great potential?” The answer, while still not obvious, is becoming gradually clearer. Last week Chinadaily.com reported that Chinese third-party payment processors have received licenses from the State Administration of Foreign Exchange, for the very first cross-border settlement pilot program, which will enable international purchases on Chinese website and, Chinese consumption on foreign websites.
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There are 17 companies involved in the program, spread across five cities in China including, for example: China PnR, 99bill and Alipay.
It is important to note, however, that as stated by Wang Weidong, a third-party payment specialist with iResearch Consulting Group: “The pilot program is on a small scale.” The licenses are also restricted to cross-border services in specific business areas with some allowed to tap into education, hotels and air tickets.
Nevertheless, the path is becoming more and more accessible with small strides taking place on an ongoing basis to bring the rest of the e-commerce world to the growing online Chinese market.
Image courtesy of Wiki Commons