ChinaPnR Co will invest 100 million yuan (US$15.6 million) to expand its business into the mobile payment sector, which has a great potential in China with more than 900 million mobile phone users.
The Shanghai-based company, which now focuses on online payment, predicted it may handle mobile payment transactions of 100 billion yuan in 2012 through mobile phones, navigation devices and portable POS (point of sales) machines.
"Mobile payment is an opportunity for all electronic payment firms. We have to seize it," said Zhou Ye, chairman and president of ChinaPnR, who used to work in China UnionPay.
The revenue in China's mobile payment market is expected at 23.5 billion yuan in 2013, fourfold from this year's level, according to Beijing-based research firm Analysys International.
ChinaPnR, which has developed a mobile payment system, cooperates with industry partners like airline and e-commerce firms to allow users to pay for services and products directly on their phones.
The company, founded in 2006, is also a mobile payment partner with China's biggest online clothes seller Vancl and China Eastern Airlines.