Digital Payments Dominate Chinese Fintech

China's financial technology (fintech) sector was valued at an estimated US$2.86 trillion in 2021, representing growth of over 400 percent since 2015. Rapid adoption of digital technology in China, coupled with its large population, has enabled its fintech market to surpass developed nations such as the United States, the United Kingdom, Japan, and Germany.

Digital payments dominated China's fintech market. In 2015, the country's fintech market reached US$533.31 billion, with US$437.95 billion (82.18 percent) attributable to the digital payments sector. Business financing accounted for US$48.53 billion (9.1 percent), and individual financing for US$46.83 billion (8.78 percent).

However, the dominance of digital payments has declined as individual financing has increased. In 2021, digital payments were estimated to account for only 54 percent of the total value of China's fintech sector. Meanwhile, individual financing showed an upward trend, representing approximately 32 percent, while business financing also increased to around 14 percent.