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With the vigorous growth of e-commerce in China, the average per capita online transactions involving money transfers, bill payments, and shopping was above 10,000 Yuan ($1,640) in 2013 according to figures released on Monday by Alipay, the e-payment arm of Alibaba Group Holding Ltd. and China's largest e-payments company.
The highest number of online transactions was in Guangdong, which accounted for roughly 16 percent of the national total of online transactions. Zhejang province was second, Beijing was third, and Shanghai and Jiangsu province were fourth and fifth respectively in Alipay's list.
While it is a known fact that residents of the first tier cities are big spenders, small cities and even counties are also catching up to or even overtaking other bigger and more progressive cities. For example, residents of Yiwu, Zhejang, where a major wholesaler for appliances, accessories, and toys is located, spent an average of 40,000 yuan in online transactions last year. This amount is more than double Beijing's average, according to Alipay.
Mao Ajing, an analyst from Analysys International, said that the e-commerce market in both first and second tier cities is intensely competitive. Mao added that e-commerce companies have expanded to third and fourth tier cities where incomes and costs of living are less, resulting in higher disposable incomes to shop online.
With an increasing number of people having Internet access via their smartphones, lower-tier cities and regions can be the strong drivers of online shopping in China, according to analysts.
In northwestern China, close to 38 percent of Alipay customers in Yushu county of Qinghai province used their smartphones to make online payments. This percentage is the highest rate of any region in 2013.
