Recently, China Internet Network Information Center (CNNIC) officially released the Report on Online Payment Security in China 2012 (hereinafter referred to as the “Report”). According to the 30th Statistical Report on Internet Development Condition in China, Chinese online payment users have reached 187 million as of June 2012, with a penetration rate as high as 34.8% among netizens. This Report indicates that the overall condition of online payment security is sound; only 5.3% online payment users think online payment isn’t safe. Whereas, phishing website frauds cover 64.4%, the highest among possible security accidents.

There is a huge potential for the development of online payment in China, third-party payment and online bank payment are the top two online payment tools, and rapid payment has penetrated into nearly half of the users. Chinese Internet is transforming from entertainment to business, payment has become an important application platform, online retailing and local consumption witnessed sharp increase, and the payment market has a huge potential of development. The survey indicate less than one fourth of Chinese netizens use online payment, and there is a sound trend of growth. At present, the most popular online payment is third-party payment account balance payment and online bank payment in China, covering 79.2% and 75.7% payment users respectively. Rapid payment and card payment is also a new trend with 40.4% coverage.

Alipay has a remarkable advantage in coverage, and Unionpay is seeing rapid growth. Alipay is the third-party payment tool with the largest coverage, about 80% online payment users choose Alipay, and its coverage is much larger than others. Tenpay comes the second, 21.1% usage; and Unionpay comes the third, covering 16.9%.

The overall situation of payment security is sound, and only 5.3% online payment users think online payment isn’t safe. Online payment users think highly of online payment security, among which 9.3% believe online payment is very safe, 69.4% think online payment is relatively safe, and 16% online payment users think online payment safety is average. Only 5.3% online payment users feel online payment isn’t too safe or very unsafe. Seen from terminals, 60.9% online payment users believe payment by computer is safer than by mobile phone, and the awareness of safety is significantly affected by familiarity. Seen from payment type, online payment users think third-party payment tool with guarantee mechanism is the safest, about 47.2% users choose them, common online bank payment comes the second, and about 29.2% users choose it. 

Users’ awareness of security is poor, and only half online payment users concern the security of online payment. 52.8% online payment users pay attention to the security of online payment, and the remaining 47.2% users attach less emphasis to the security of online payment. In addition, 57.6% users are not aware of the methods to secure online payment. Comparatively speaking, users are vigilant on personal information, and have poor awareness of protection in instant communication links. When receiving a call of refund, the name, account or mobile phone verification information is needed, only 2.9% users would like to release their personal information. When users receive unknown links from the opposite by instant communication tools, 15% users may click them directly. 

3.2% of online payment users ever encountered security accidents, and phishing website fraud comes the first. 3.2% online payment users say they have ever encountered payment security accidents in the recent half year. The biggest security problem is haste payment due to the fraud of false network, covering 64.4%; theft of payment account or password comes the second, covering 19.2%. When encountered safety accident, 34.2% users seek solutions from the payment institution; 9.6% users call the police; 6.8% users find out the criminals themselves and recover the loss. 41.1% users bear the loss themselves rather than investigating and affixing the responsibility for the fraud.