This is a matter that the supervision has been promoting. The foreshadowing work has been carried out since a few years ago, but let the institutions that are independent and competitive with each other turn into cooperation. It seems that there are many sensitive issues in the industry that need to be balanced. For example, Payment institutions spend a lot of money to lay two-dimensional code in the early stage, and other institutions will share it later. Will it affect the customer stickiness and business of the giant institutions Growth and voice? Who will win in this change?
Marriage between UnionPay and wechat
UnionPay and TenPay have reached a cooperation on the interconnection of barcode payment. UnionPay cloud flash payment app and ICBC, ABC, BOC, CCB and other bank apps can transfer or pay by scanning wechats face-to-face QR code . From today, it will gradually expand this function to the whole country from the pilot area. On January 3, the news about the marriage between UnionPay and wechat quickly fermented. Tencent responded that the news was basically true.
According to another person familiar with the matter, Ningbo, Chengdu and Hangzhou are the pilot cities designated by the central bank for barcode payment interconnection. It has also completed a pilot project with a third-party payment agency in Ningbo. On January 3, the reporter failed to scan wechat QR code with UnionPay app in Beijing.
Bar code payment, also known as two-dimensional code payment, has changed the way residents pay in recent years. But the market competition is equally fierce. For example, we often see a number of separate two-dimensional codes in UnionPay, Alipay, WeChat payment and so on. Industry insiders pointed out that the fragmented barcode payment market has caused a waste of social resources. From the perspective of reducing resource waste and social transaction costs, the interconnection of barcode payment has a positive social significance.
Wechat of the last UnionPay bureau did not join
It is worth mentioning that as early as the end of 2016, UnionPay issued the two-dimensional code payment standard, which realized the one code universal between banks, and laid a foundation for the interconnection of inter agency bank card barcode payment. But at that time, Alipay and WeChat, which had taken up the absolute share of the market, did not pay.
Prior to the release of the standard, UnionPay also issued a letter to non-financial Payment institutions on business invitation cooperation to promote China UnionPay card QR code payment products and relevant standards and specifications, and formally invited third-party payment institutions, the main force of scanning business, to participate in the research and promotion of China UnionPay card QR code payment products.
For UnionPays move, at that time, the payment industry already had the evaluation of holding a group and standing in line. For example, UnionPays two-dimensional code payment standard is not a regulatory standard, and whether the third-party payment agency will pay the bill is a market behavior.. However, the small and medium sized third party payment institutions are not easy to survive under the strong offensive of Alipay and WeChat, so they will adopt the two-dimensional code payment standard of China UnionPay.
In addition, the aggregation payment appeared before the interconnection of barcode payment has also aggregated the two-dimensional codes of multiple payment institutions, but the aggregation payment also plays a role of shelter for unlicensed Payment institutions to a certain extent. Payment institutions, such as some undocumented Payment institutions mixed into the hidden gray area between payment giants and merchants, illegally carry out merchant fund clearing, known as Erqing. Specifically, users use Alipay or WeChat to scan the two-dimensional code in small shops. After the transaction information of the code is removed from App to merchants, some are not directly sent to the payment agencies. Instead, they go to the outsourced business first, and the funds are controlled and controlled by them.
In 2018, the central bank issued a strike hard order to unlicensed Payment institutions, and the shuffling of aggregated payment began. Several aggregated payment companies announced to suspend the merchant collection function, and several banks broke up with the scanning channel.
In addition to the aforementioned two-dimensional code payment standards issued by UnionPay, in 2019, a number of central bank officials mentioned in public speeches or public articles that they are actively promoting barcode payment interconnection, mutual recognition and scanning through emerging financial technology means, and promoting barcode payment interconnection has also been written into fintec, the first financial technology plan h) Development plan (2019-2021). Bar code payment interconnection has been significantly accelerated.
Li Wei, director of science and Technology Department of the peoples Bank of China, published the first article in the May 2019 issue of Tsinghua financial review, saying that the peoples Bank of China is actively promoting the interconnection, mutual recognition and mutual scanning of barcode payment through emerging financial technology means.
When it comes to the necessity and feasibility, Li Wei said that mobile app and merchant barcode cant be mutually recognized and scanned, and users need to switch mobile app, which affects the payment experience of consumers. The lack of standards and norms is also easy to breed counterfeit and fraudulent barcode transactions, increasing the risk of public information disclosure, capital loss and other aspects. With regard to the impact of connectivity, Li Wei said that the current aggregate payment market will face a new round of reshuffle, and more aggregate Payment institutions will be transformed into merchant value-added service providers.
Who is the winner?
Dong Zheng, a financial analyst, believes that barcode payment interconnection is the general trend and cannot make institutions independent of supervision. In fact, combing the supervision of Payment institutions in recent years is not only a two-dimensional code interconnection.
In 2017, the trial operation of online connection is equivalent to erecting a wall between the payment agency and the bank. Any third-party payment agency wants to access the bank, and the user can only transfer across banks through UnionPay or online connection. At the same time, Payment institutions will deposit 100% of the reserves in a centralized manner by January 2019, and some small and medium-sized institutions that use the reserves as a small Treasury to eat the interest margin have been cut off. According to the statistics of yiou think tank, before 2017, the proportion of reserve income of Online Payment institutions to total income reached 11.26%, decreased to 5.4% in 2018 and 0 after disconnection in 2019.
Wang Pengbo, an Analysys analyst, said that the biggest impact of barcode payment interconnection on the industry lies in the change of traffic logic, which is more conducive to traditional acquirers. After the code card became a shared infrastructure, the business logic changed. If the platform organization pays offline, it will save a lot of capital and labor costs in the early stage of infrastructure construction, and also provide the possibility for each acquirer to independently develop its own C-end account system, which is likely to break the existing payment market pattern.
He further said that it is a great advantage for traditional acquirers. Acquirers like Tonglian, lakala and accompanying payment can reach merchants directly and start to layout b-end value-added services of merchants for a long time. In particular, each marketing product has a mature solution. Once the private domain traffic originally belonging to the two is released, the market prospect can be very considerable.
Will the user stickiness of wechat be affected? According to Wang Pengbo, with wechats huge social advantages, the growth rate and stickiness of users have not changed for a long time due to the two-dimensional code laying range, which is also the reason why wechat payment gradually starts to charge online, such as the charge for convenient services such as credit card repayment. But from the perspective of business, the break of the ecological closed loop created in the early stage will cause various problems, and the imagination space of business is also becoming smaller. This will strengthen UnionPays offline voice again. From the perspective of overall profit, offline is the real source of profit in the payment industry, including the clearing house. And from the beginning of the establishment of China UnionPay, we can see that the feeling and reaction speed of UnionPay to business are all in the positive development. Wang said. Beijing News reporter Cheng WeiMiao source: responsible editor of Beijing News: Yang Bin Dou nf4368
Will the user stickiness of wechat be affected? According to Wang Pengbo, with wechats huge social advantages, the growth rate and stickiness of users have not changed for a long time due to the two-dimensional code laying range, which is also the reason why wechat payment gradually starts to charge online, such as the charge for convenient services such as credit card repayment. But from the perspective of business, the break of the ecological closed loop created in the early stage will cause various problems, and the imagination space of business is also becoming smaller.
This will strengthen UnionPays offline voice again. From the perspective of overall profit, offline is the real source of profit in the payment industry, including the clearing house. And from the beginning of the establishment of China UnionPay, we can see that the feeling and reaction speed of UnionPay to business are all in the positive development. Wang said.