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　　 The World Trade Organiza- tion’s latest report might force China to open the electronic payment field to foreign companies. The status quo of this field in this country is that the electronic payment in China is mainly dependent on the third-party payment, such as Alipay, and UnionPay. However, confronted with the 538 million Chinese citizens, opening this field is necessary and developing the online payment through mobile phones is essential.
　　However, the opening is a doubleedge sword. Once it is opened, the electronic payment industry will definitely see intensified competition, which might have impact on current participants. Therefore, the Chinese government is recommended to have a careful and sound attitude towards the opening process.
　　 Foreigners’ Ambition in China’s Electronic Payment
　　Recently, the WTO published the report made by a professional team on the US representative office’s complaints about the monopolization of China’s UnionPay, in which it referred to that the obligation of China to open its markets did not conflict with the features stressed in the Chinese central bank’s Management Methods of Payment Service of Non-financial Institutions. Therefore, the UnionPay is only blamed for the monopolization in some of the sections of the electronic payment industry instead of the whole part. Actually, China never banned the entry of foreign suppliers of electronic payment service into its market.
　　Though no foreign electronic payment enterprises can be seen in China at this moment, great changes are brewing behind this as the Chinese electronic payment market becomes more and more attractive. According to iResearch’s statistical data, the trade volume of online payment in China hit 2.2 trillion yuan in 2011. Another research institution Analysys forecasts that the third-party payment will increase by 50% year by year in the next three years and this year the trade volume is about 3.8412 trillion yuan and it will increase to 6.4148 trillion yuan in the following year.
　　Presently, the electronic payment market in China sees the participation of big companies like Alipay, Tenpay and UnionPay, as well as the involvement of a number of small- and middle-sized companies. Jing Linbo, vice dean of the Chinese Academy of Social Sciences’ Financial Strategy Institute, said that the situation of China’s electronic payment market would be greatly changed if foreign payment companies were allowed into China again.
　　Recently, a professional thirdpayment company ChinaPnP was established in Shanghai. This company received the support of several domestic commercial banks and was closely related with foreign investors. It is under heavy scrutiny because its to-be-appointed president Zhou Hua previously worked as an executive for UnionPay. If a former executive of UnionPay takes charge of the business of this new company, its target competitor is possibly the UnionPay. Then, if UnionPay does not work with the banks and relevant institutions to promote the universal utilities of banking cards, improve its service and ability or enhance international cooperation, it might not meet the demand of the increasingly internationalized market.
　　The electronic payment is no longer limited to using credit cards or banking cards. The payment service is strategically positioned as the near field payment, e-wallet and integration of business units’ discount. Apart from UnionPay, other electronic payment companies in China would also be crashed by the invading foreign companies if they do not take offensive measures.
　　 Open for the Good of Electronic Payment
　　Actually, the electronic payment industry is witnessing a more serious competition. The open of the financial industry as well as the payment industry is a rule for China to join in the WTO. In such a highly commercialized industry, the government should give the same treatment to the state-owned and foreign companies. When the market competition is encouraged, the Chinese companies are forced to improve their business scope and service level, and to develop the payment methods needed by citizens. It is confirmed that the competition of the foreign-funded payment institutions have already boosted UnionPay to improve their service level and efficiency.
　　The list of first receivers of payment licenses was issued in 2012, according to which 193 third-payment enterprises have already been given the license of getting engaged in payment business by the central bank. At the end of June 2012, the central bank published the fourth list of license receivers, which recruited 95 new players, further intensifying the competition of the electronic payment industry.
　　However, there are a lot more to be improved to open the industry and improve the competition. The Chinese electronic payment industry needs to be improved, which should be inspired by the introduction of exotic competition.
　　A brief insight into the development of electronic payment in foreign countries reveals that the payment through mobile phones gets matured in Japan and Korea. In Japan, the mobile payment business pattern highlights the overall control of the mobile communication operators for the whole market with their dominance in this industry. In Korea, however, the mobile communication operators work with banks and the penetration rate of pay- ment through mobile phones is close to 60%. In Africa, the mobile payment is even more developed than developed countries because the mobile payment is supplementary for the traditional banking business. Consumers can buy things with mobile payment. In Europe and America, the mobile payment has a long history of development and thus a lot of experiences have been accumulated.
　　Then let’s look back at China. Most of the 538 million Internet users in China are aged at between 18 and 30. These people usually have a high education level and a decent job. They prefer to use smart cells and would frequently use the mobile payment for recharging communication service, tickets, payment transfer and self-activated payment. Therefore at least half of the netizens in China are expecting the mobile phones to have these functions. The arrival of foreign payment companies can force Chinese companies to address these problems more swiftly and promptly.
　　 Proper Principles to Be Held for Opening
　　Though it is necessary to open the electronic payment field, it still needs cautious attitude towards this issue because bad things might come along with foreign players. In addition, the entry of foreign capital must have impact on the industry. Thus the government needs to be cautious and gradually open this market.
　　The market must be relied on during the development of China’s mobile payment. The government guidance must be enhanced and the standard management must be improved. A uniformed technological standard should be formed and relevant institutions must be fully used.
　　First of all, the Chinese features should be held on. The development of mobile payment should follow the market-oriented principle to form a benign development pattern. The market development should be correctly guided and the mobile payment should be fully and actively used in the social and economic development. New polices are to be issued to guide the development of mobile payment to further improve laws and regulations related with this industry. In addition he technological standard for mobile payment should be made as quickly as possible.
　　The central bank and financial system also play an important role in that field. They need to enhance the supervision and regulation since the payment industry concerns massive individual information and the business volume is big. In consideration of the financial safety, China needs to take proper measures to gradually open the market step by step. In addition, the extensive use of electronic currencies in mobile payment might have influence on the currency circulation in the market. The advantages of UnionPay’s connection with commercial banks in China are to be used for maximizing its role in the development of mobile payment.

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