Analysis of the third-party payment industry

Internet-based payment enterprises, led by Alipay and Tenpay, mainly pay online, and bind large-scale e-commerce websites to become bigger and stronger rapidly.

Financial payment enterprise

Financial payment enterprises, represented by UnionPay Business, Quick Money, Remittance to Tianxia, Epro and Lacarra, focus on industry demand and develop industry applications.

The third-party payment company is a credit intermediary.

As a credit intermediary, third-party payment companies of non-financial institutions are similar to mobile phone credit card reader products such as UnionPay, Lacarra and Jia Lian Payment. By signing contracts with major banks at home and abroad, these mobile payment products have good strength and credit guarantee. They are independent institutions that protect the interests of both parties under the supervision of banks, and establish some form of data exchange and information confirmation payment process between consumers and banks. Aifu provides offline real-time payment service based on POS terminal to the majority of bank card holders, and provides comprehensive services such as POS application/approval, automatic checkout/reconciliation, cross-regional T+ 1 settlement, fund collection and multi-account management to terminal merchants. Domestic third-party payment products mainly include Alipay, WeChat Payment, Baidu Wallet, PayPal, Zhonghui Payment, Lacarra, Tenpay, Rongbao, Shengfutong, Tenpay, Tonglian Payment, yeepay, Zhonghuibao, Kuaiqian, Guofubao, Logistics Bao, Wang Yibao, Online Banking, Huanxun Payment IPS, Remittance to the World, Convergence Payment, Baoyi Interchange and Baby. Paypal

Among them, PayPal and Alipay have the largest number of users, the former is mainly popular in Europe and America, and the latter is the product of Ma Yun Alibaba. It is said that by July 2009, Alipay had more than 200 million users. Lacarra is the largest offline convenience financial service provider in China. In addition, UnionPay electronic payment, a subsidiary of China UnionPay, has also begun to exert its strength in third-party payment, and launched UnionPay business to provide corresponding financial services.

Alipay

Alipay (China) Network Technology Co., Ltd. is a leading independent third-party payment platform in China. It was founded in February 2004 by Mr. Ma Yun, CEO of Alibaba Group, and is an affiliated company of Alibaba Group. Alipay is committed to providing "simple, safe and fast" online payment solutions for e-commerce in China.

Lacarra pays.

Technology integration is to combine the strict risk control of banks with the technological innovation of payment enterprises. Mobile banks such as China Merchants Bank and China Guangfa Bank have built-in Lacarra mobile payment function, which solves the problem that mobile banks can only accept their own bank cards.

Tenpay

Tenpay is a professional online payment platform officially launched by Tencent in September 2005. Tenpay is committed to providing safe, convenient and professional online payment services for Internet users and enterprises.

Moneybookers

On February 5, 2003, MB became the first electronic bank officially recognized by the government in the world. It is also a member of 14 of the British electronic money association EMA. It is widely listed as the main payment form after e-payment by money-making companies. More importantly, the foreign exchange in this electronic bank can be transferred to a bank account in China.

Fu Bao

The "My Payment Navigation" launched by Fu Bao is mainly divided into two sections: personal payment navigation and merchant payment navigation. From online payment of utilities, electricity and coal and other basic daily needs, to train ticket purchase, hotel reservation, online shopping, communication recharge and other "daily convenience services", "My Payment Navigation" not only provides convenient life payment services for individual users, but also provides products and services such as industry solutions, one-stop solutions and value-added services for enterprise merchants.

Guofubao

Guofubao Information Technology Co., Ltd. (hereinafter referred to as "Guofubao") is a joint venture between China International Electronic Commerce Center (hereinafter referred to as "China International Electronic Commerce Center") and HNA Commercial Holdings Limited (hereinafter referred to as "HNA Commercial"). It is an independent third-party electronic payment platform with state-owned assets background and social credit system, and it is also an important part of "Golden Gate Plan".

xunyinpay

Yin Xun Payment is composed of senior practitioners in the fields of domestic finance, payment and technology. With its own innovative technology, the company strives to provide a safe, convenient and stable Internet financial payment technology platform for domestic enterprises, industry customers and investors, and has mature and perfect management experience and service system.

Yin Xun Payment focuses on the needs of end consumers, and its smart terminals also include a series of convenience services such as credit card repayment, telephone recharge, water, electricity and coal payment, so as to serve consumers to the maximum extent. In addition, the approval of Yin Xun's payment for joining is also very simple, which is convenient to handle and can be used after installation. In addition, Yin Xun Payment also has a financial service T+0 platform, a business alliance life service platform and a data outsourcing service platform.

As a leader in the industry, Yin Xun pays the interests of the merchants first, ensuring that the transactions of the merchants will not stop and the settlement will not be slow, so that no merchant will lose a penny. These businessmen are the people who give Yin Xun the greatest trust. Only by gaining their trust can Yin Xun pay the price in the future. Secondly, we should consider the interests of dealers to ensure that dealers can maintain profits and business stability. Distributor is the core partner of Yin Xun Payment, and Yin Xun Payment will advance and retreat together with all distributors for common growth and mutual benefit! The development history of countless industries shows that the early countries always provided a relaxed environment to support the development of a certain industry, and even turned a blind eye to some behaviors that edged the ball and exploited policy loopholes. However, when it develops to a certain extent, especially in the period of rapid development, the relevant state departments will intervene in management and provide necessary and effective norms, supervision and management to ensure the sustained and healthy development of the industry.

The senior management of China Bank pointed out that "some innovative products in the market, such as online payment and mobile payment, may face certain risks in the absence of regulatory constraints and need corresponding laws and regulations to regulate and manage", and online payment and mobile payment are the main operating forms of third-party payment. Obviously, this statement by the top management is sending an obvious signal to the third-party payment industry: it is necessary to regulate the third-party payment industry.

The third-party payment industry should indeed be governed. Disorderly competition makes each family's profits not high, or even operate at a loss. Without hematopoietic function, the vitality of the industry is not strong. Most third-party payment platforms still rely on collecting payment fees, that is, the third-party payment platform and the bank determine a basic fee rate and pay it to the bank; Then the third-party payment platform adds its own gross profit to this rate and charges customers. However, due to the cruelty of competition, in order to seize more customers, some third-party payment companies even spare no expense, and the commission share for customers will drop and then drop, and preferential conditions will emerge one after another. Many third-party payment companies have long been making money at a loss.

The subtle relationship between the third-party payment platform and the bank

The relationship between the third-party payment platform and the bank is very subtle. Once the third-party payment becomes bigger, it will compete with the bank's online banking and online payment, and may even obtain a banking license and become a retail bank. Therefore, its supporting banks will never raise tigers. On the other hand, the third-party payment has also played a leading role in launching online electronic payment services for banks in the future, making it easier for banks to launch online electronic payment services. So banks don't want to go too far and kill them in the cradle, which is a bit like killing a donkey.

Business conflict between third-party payment and bank

The business conflict between third-party payment and banks is not obvious, but it will become more and more obvious in the near future. However, as mentioned above, because the third-party payment has done a lot of useful things for the bank in the past, the bank may have scruples about killing the third-party payment immediately. Therefore, in order to avoid the war with the third-party payment enterprises, the banking industry once pointed out a way out for the third-party payment enterprises. The president of a bank once bluntly said: "If it is C2C, third-party payment is very popular. Because there are many and scattered sellers, management takes a lot of time and banks have limited energy; But if it is B2C, some big merchants are not necessarily weaker than third-party payment institutions. In this case, banks can directly intervene. " The implication is that third-party payment will develop to C2C.

Third-party payment and win-win development of banks

The cross-platform characteristics of third-party payment institutions in science and technology, finance, online and offline make their accumulated industry experience and user data more multidimensional. They can track, analyze and mine online and offline user behavior data through the latest scientific and technological means, and connect these data with bank credit and other businesses, thus creating a new financing model, such as Internet finance, which everyone is paying attention to now.

Although the overall scale of third-party payment enterprises is still small compared with banks, the innovation and flexibility of third-party payment business have attracted the attention of banks. Third-party payment companies are closer to users, and they can obtain users' needs more clearly and meet them quickly. Therefore, banks should actively cooperate with third-party payment enterprises in bank cards, credit and basic financial services. For example, some small and medium-sized banks, due to the small number of outlets, credit card repayment is inconvenient, resulting in the slow development of credit card business. Cooperation with third-party payment companies can solve the above problems.

online bank

In addition to the brutal competition among third-party payment enterprises, the banks on which third-party payment originally relied are gradually moving from behind the scenes to the front desk, which is likely to replace third-party payment enterprises. At the beginning, when the third-party payment enterprises appeared, banks thought that the third-party payment was conducive to developing new business for themselves, and no matter how these payment enterprises tossed around, it would not threaten the dominant position of banks in this industry. It is based on this understanding that banks can be more open and tolerant to the development of third-party payment platforms from the beginning. Banks seem to be interested in online payment. Industrial and Commercial Bank of China, China Merchants Bank, Industrial Bank and Guangfa Bank have all invested heavily in online electronic payment. In addition, 15 foreign banks approved by the central bank of China are allowed to open online banking in China, which will undoubtedly have a fatal impact on domestic third-party payment enterprises in China after the opening of the banking industry in China.

Finally, it must be mentioned that third-party payment companies are often supported by foreign investors, domestic investors or well-known e-commerce websites. At present, in order to occupy the site and operate at a low profit or even at a loss, the support of investors may even determine whether the third-party payment can survive, but the current cold investment environment will make the living environment of the third-party payment enterprises worse. With the progress of the times, the lifestyle is gradually changing, and the influencing factors include mobile phones, networks, e-commerce and even our means of payment. Unlimited business opportunities behind the change use e-mail for online payment; Call the credit card number to book a flight; Pay utilities and game fees online by mobile phone ... Today, people in China have not fully adapted to the evolution from paper money to "plastic money" (credit card). Third-party payment tools such as online banking and mobile wallet have quietly changed our lives, but they also contain huge business opportunities. The rapid rise of third-party payment has also attracted the attention of international financial institutions. Yesterday, Standard Chartered Bank (China) and Alipay jointly announced the launch of "Standard Chartered Bank-Alipay Express Payment" service. In the future, users of Standard Chartered China Debit Card can use Alipay Express to pay online, which is the first time that a foreign bank has opened online express payment service.

According to the data released by Analysys International on August 10, the third-party payment market in China reached 454.6 billion yuan in the first half of 20 10, up 33% from the previous month and 89% from the same period last year. Joy chen, vice president of yeepay, said in an interview that the third-party payment market will easily exceed 1 trillion by the end of the year due to the influence of more traditional enterprises entering e-commerce.

The core business of China's third-party payment market is the online payment market, which entered an accelerated development stage in 2004 and exploded in 2008 and 2009. Especially with the promulgation of 20 10 Measures for the Administration of Payment Services for Non-financial Institutions and Detailed Rules for the Implementation of the Measures for the Administration of Payment Services for Non-financial Institutions (Draft for Comment) by the People's Bank of China, the third-party payment industry ended its original growth period and was formally regulated by the state. In the future, the third-party payment industry will face the coexistence of highly concentrated and differentiated advantages, and will usher in a breakthrough in the profit model. At the same time, it will also sound the gunshots of the domestic payment industry. 1. Subject qualification and business scope risk third-party payment, engaging in business between network operation and financial services, the legal status is still unclear. Although most third-party payments try to establish themselves as intermediaries to provide users with online receipts and payments, from the actual operation of all these third-party payment services, payment intermediary services are essentially similar to settlement services. In addition, while providing third-party guarantees for buyers and sellers, a large amount of funds in transit accumulate on the platform, showing a function similar to that of banks absorbing deposits. According to China's Commercial Bank Law, taking deposits, issuing loans and settling accounts are the exclusive business of banks. The business operated by the third-party payment platform has broken through some existing joining restrictions, and how to position it is a problem that we should think deeply.

2. The risk of in-transit fund deposit and the virtual account in the payment process, whether it is the third-party payment platform model or the internal transaction model, there is a kind of fund absorption behavior. When the absorbed funds reach a considerable scale, the problems of capital security and payment risk appear.

(1) In the mode of third-party payment platform, the funds deposited in transit are often placed in the accounts opened by third parties in banks, and the funds of ordinary merchants will stay for two days to several weeks. The possible risks of this part of the funds in transit are: First, more and more funds in transit will increase the credit risk index of the third-party payment platform itself. The third-party payment platform provides guarantee for both parties to online transactions, so who will provide guarantee for the third party? Second, third-party payment platforms have a large amount of funds deposited. If there is no effective liquidity management, it may lead to payment risk.

(2) In the internal trading mode, it involves the issuance and use of virtual currency. Virtual currency has not been included in the supervision scope of the central bank, and it is outside the banking system. It is difficult to track the flow of funds within the platform and what impact it will have on the real society. It is still unclear. However, the issuance of virtual currency is completely out of control. When more and more people recognize and use virtual currency, it will be a huge disaster if there is a problem in the docking of virtual currency and real currency. No one is willing to pay for this risk and can't afford it.

3. Money Laundering Risks Brought by the Anti-Money Laundering Law The central bank said in the Anti-Money Laundering Report that the proportion of online banking in banking business has increased rapidly, most transactions are conducted by telephone and computer network, and banks and customers rarely meet each other, which makes it very difficult for banks to understand customers and has become a prone and high-risk area for money laundering.