Chinese online payment provider 99Bill has formed a strategic alliance with Chinese gaming firm Perfect World Network to jointly promote online game and online payment markets.

Under the agreement, 99Bill will provide PW Network with integrated B2B and B2C payment solutions covering debit cards, credit cards and prepaid refilling cards to all game titles, including Zhu Xian, Legend of Martial Arts, Perfect World and Perfect World II.

China's online gaming industry is expected to generate CNY9.7 billion this year, making it one of the world's most lucrative markets. Yet, home-grown online games account for only 10 percent of the total games available in the country. The alliance between 99Bill and Perfect World comes at a time when the government is providing a strong backing to home-grown games.

"Online payment is gaining significant momentum in the gaming industry. It is not only improving user experience, but also significantly cutting transaction costs," said Oliver Kwan, CEO of 99Bill.