The Chinese IP market is currently very strong, with further expansion predicted over the coming years to bring it to full maturity. Unsurprisingly, given China’s considerable population, a huge number of IP transactions are made (more than 16 billion in 2019). Even with current exceptional volumes, the future of IP is promising, with a predicted five year CAGR of 18.8%.
China’s IP scheme — Internet Banking Payment System (IBPS) — was launched in 2010 by the People’s Bank of China (PBC). It offers two types of IP (single instance and recurring), two initiation methods (bank account or mobile number) and a healthy 290 participants.
IBPS integrates the online banking operations of most of China’s domestic and foreign banks, enabling customers to make online transactions in real time and to access real-time account information. On the bank side, it has direct and indirect participants, all of which are financial institutions. Direct participants must have RMB (Renminbi, the official currency of the People’s Republic of China) reserve accounts with PBC, as well as direct access to the system. Indirect participants connect through partner banks which carry out fund transfers on their behalf. This type of indirect participation encompasses third-party payment companies like Alipay and WeChat Pay.
