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Maverick China Third-Party Payment Profiles: IPS - In the Money with a Merchant Focus

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US $ 800 £Ü 953,200 PDF by E-mail (Single Report)


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Abstract

IPS is one of China' s oldest third-party payment providers, and through their online payment platform, is one of the few Chinese payment providers making a profit. To date, they have been successful where others have failed by focusing on merchant-targeted online payment solutions. IPS has been able to make money in spite of a very small registered user base of only 1.5 million. In this report, we dissect how IPS, already 7 years in the industry, has been successful so far and whether or not their strategy is suitable for future growth in China' s payment industry.

Key Findings:

  • IPS focuses on accumulating merchant partners and not individual users for its online payment platform.
  • IPS is one of the few Chinese payment providers with positive cashflow, putting them in position to grow their business rather than start up a business.
  • Strong and aggressive sales and marketing teams, have led to high exposure in local conferences, events, and the press.
  • IPS leverages funding and technology from its Hong Kong-listed parent, Universal Technology Holdings.

Table of Contents

1 Industry Overview: Key Factors Shaping Third-Party Payments in China

  • 1.1 Continued preference for cash payments, but bank card payments rising
  • 1.2 Credit card use remains low; debit cards widespread
  • 1.3 Limited coverage of non-cash payment services
  • 1.4 China UnionPay' s bank card monopoly
  • 1.5 Quasi-online payment systems an interim solution
  • 1.6 Two ISPs, 162 million Internet users
  • 1.7 Two mobile operators, 500 million subscribers
  • 1.8 Contactless smartcard use increasing but largely limited to buses and subways
  • 1.9 Government regulations and the "national interest"

2 IPS - In the Money Through a Merchant Focus

  • 2.1 Company Overview
    • 2.1.1 Ownership
    • 2.1.2 Organizational Structure
    • 2.1.3 Management Team
  • 2.2 Business Performance
    • 2.2.1 Financial Performance
    • 2.2.2 Users
  • 2.3 Services and Channels
    • 2.3.1 Business & Operation Model
  • 2.4 Markets and Coverage
  • 2.5 Marketing and Branding
  • 2.6 Partnerships
    • 2.6.1 Bank Partners
    • 2.6.2 Merchant Partners
    • 2.6.3 Technology Partners
  • 2.7 Competitive Analysis
    • 2.7.1 Strengths
    • 2.7.2 Weaknesses
  • 2.8 Outlook

List of Figures

  • Figure 1: Credit cards issued in China and in the US (M)
  • Figure 2: Internet Users in China, 2001-2006 (M)
  • Figure 3: Mobile Subscribers in China, 2002-2010F (M)
  • Figure 4: China government groups involved in third-party payment regulation
  • Figure 5: Universal Technology Holdings Company Structure
  • Figure 6: IPS Management team
  • Figure 7: IPS Annual Transaction Volume, 2001-3Q2007 (RMB M)
  • Figure 8: IPS Annual Number of Transactions, 2003-2006 (M)
  • Figure 9: IPS Average Transaction Size (RMB)
  • Figure 10: IPS Fee Structure for Merchant Partners
  • Figure 11: IPS Operation Model
  • Figure 12: IPS Payment Service Coverage by Channel
  • Figure 13: IPS logo
  • Figure 14: IPS Bank Partners
  • Figure 15: Select IPS Merchant Partners
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