Danal and 17wind use mobile payments in the profitable online lottery segment in China

The overall lottery sales in China has grown at a CAGR of 33% from 1987 (year of launch) to 2012 according to According to the Ministry of Finance, China’s lottery sales reached $32.36 Bn in August, 2013. This figure was up 17.6% or $4.8 Bn for the same period last year. The ministry gave credit to promotion of quiz-style games and more outlets for online lottery games for the jump in sales.

One of the other reasons why there has been a jump in sales include policy changes which came into effect on 1st January, 2013. According to the policy changes, privately owned enterprises can now offer lottery services in China.

Following the policy change in a recent move Danal, global leader in e-commerce mobile payments, announced their partnership with 17wind on 10th October 2013. Danal claims that it will enable payments to be made on the private online lottery site with their mobile payment solution. This announcement follows closely after the launch of their fingerprint payment technology. Whereas, 17wind claims to be the first privately owned enterprise to be given a license for online lottery services in China.

'Danal's diverse mobile and alternative payment solution caters really well to the Chinese market and is therefore very well-received by all local companies,' stated Jin Gon Jo, Head of Danal China. Speaking on the partnership with 17wind, Jin Gon Jo added 'Bringing mobile payments to 17wind's online lottery service is an exciting new segment and we are looking forward to an accelerated growth in the coming months.'

Users’ can use prepaid cards, credit cards, bank debit, carrier billing or other payment option through Danal’s solution. The company is parent to BillToMobile. Danal’s mobile payments solution can be utilized by consumers to make purchases at convenience stores, restaurants, retail shops and mobile app stores using their smartphones.

Jim Greenwell, CEO and President, BilltoMobile said 'By venturing into mobile payments for lottery services, Danal has proven yet again that it is the pioneer and global leader in mobile commerce solutions.

With the advent of internet gambling sites and mobile phone apps, the lottery industry has become even busier, targeting new and younger gamblers. We have had enormous success powering mobile payments in a number of different verticals and geographies, and we expect this success to grow multifold with this launch.' added Greenwell.

LTP View: Based on high growth of overall lottery market, and favorable policy changes, online lottery market in China has significant potential for growth. Danal may have made the right move to tap into this industry which is still in its nascent stage by partnering with 17wind.