Electronic payments in China are expected to top 30 billion Yuan (US$3.75 billion) this year.

The booming online trade business and increased Internet penetration will push payments to double last year's level.

About 70 percent of small and medium third-party payment firms, however, will disappear, probably by the end of the year, as a result of the central bank issuing licenses to strengthen regulation.

China's electronic trade volume, 97 percent from online payments, will reach 33 billion Yuan this year compared with 16.4 billion Yuan last year.

In 2010, the volume will reach 280 billion Yuan.

Alibaba's Alipay, eBay's Paypal and China Pay lead the market.

It is a trend that online trade Websites, like taobao.com and ebay.com, combine original match-making services with online payment services.

Last year, about 55 million Chinese, more than one-third of Internet users, made online payments and the number will hit 83 million this year.

The People's Bank of China's latest move to regulate the sector will phase out small third-party electronic-payment firms.

In June, PBOC said that, by the end of the year, only licensed firms will be able to operate payment services.

Only 10 to 15 of more than 50 firms now in the market are expected to get licenses.

The regulator will probably lift the entry threshold, by means such as raising registered-capital requirements.

Source:佚名