September 26, 2013
Updated on September 11, 2019
Internet retail sales in China have boomed, and with it, the online payments ecosystem has grown. China’s internet giants, Alibaba Holding Group Ltd., and Tencent Holdings Ltd., have been the biggest players in this space and these two companies alone have handled ~ $3 trillion in 2016 which is around half the total consumer goods sold in China.
While Chinese users have adopted online payment wallets for making most of their payments, the users in the USA have continued to rely on bank-led means such as credit cards, debit cards, and payment applications that directly use the bank accounts for making transactions. This is one of the reasons banks in the USA have continued to make a significant amount of income from the online card-based payments and have also enjoyed a low-cost deposit base in the form of the savings account balance of the users. Since Chinese users have completely remov ...