The increasingly competitive environment in the financial services market has resulted in pressure to develop and utilize alternative delivery channels. A growing phenomenon in financial services is the use of the Internet as a channel for financial services in many countries and there is wide agreement that this channel will have a significant impact on the banking system. The vast opportunities brought by the Internet to the banking industry have therefore attracted much attention from researchers. This study aims to analyze the role, adoption and barriers of Internet banking in the banking system in China. Using a quantitative approach, this study surveyed a sample of senior manager in three major cities namely, Hangzhou, Shenzhen and Chengdu. Using a number of statistical analyses including analysis including T-test, ANOVA, Factor Analysis and Chi Square Test, The study finds that the main role of Internet banking in China is to Increase to Market Share. Another important finding is to Increase profitability. Maintain Competitive Edge and Improve customer service are the main reasons for the adoption of Internet banking by Chinese banks. However, it appears that Security risk constitutes the main barrier to Internet banking.