Can third party payments break through the price war?

Xinhua News agency reporter Ye Feng Kaoshaohua

Remit to pay the world to enter more than 20 major cities nationwide, IPs set up 6 branches in China ... There are indications that third party payment companies, which were mainly concentrated in a handful of key cities, are accelerating to expand across the country.

The payment enterprises to compete

Jinan changqing Heng Xiang Chicken cooperatives in charge of Li Hengchao recently found that chicken trading convenience a lot. He said: "Two times in the past one weeks to run the city to withdraw money, save, now one months to go once on the line; some of the previous merchants have to drag money, now more than 1000 yuan business, can require merchants to pay card immediately; In addition, no cash, but also against counterfeit banknotes. "And let all this change happen is a newly installed POS machine."

Commissioned agents to help Li Hengchao install POS machine to pay the world, recently announced its branch in Jinan official opening.

Since last May, the central bank has issued a third party payment industry licence has accumulated 4 batches, nearly 200. At present, the payment enterprises have been fully contested, the field of competition spread to all walks of life, the region from the local city rapid expansion to the country.

Huge potential in the mainland market

Industry payments, financial payments, online payments, mobile payments, POS billing ... With the continuous innovation of the Internet and other technologies, the great potential of the mainland market to accelerate the release of third-party payment is ushered in a huge "blue sea", and gradually formed a "dislocation competition" pattern.

However, the huge market potential does not mean that you can easily enter. Take the rural market as an example. China Internet Network Information Center on the development of rural internet in China the report shows that the current rural bank utilization rate is low and weak growth, third party payment in rural areas of awareness and use rate is also low; In addition, online payment, mobile payment, etc. also do not meet the characteristics of many rural users.

Zhou Ye, President of the world, said that the traditional POS users do not need to learn the relevant knowledge, and the use of bank cards on the traditional POS machine card with the bank counter is similar to the process and procedures, and rural users have been used in close proximity. In addition, with the popularity of bank cards in rural areas, rural supermarkets, brand stores, such as the laying of POS machines, rural users of traditional POS transactions have more hands-on experience.

"At present, the one or two-line city POS receipts market penetration is relatively high, mainly by the commercial banks and UnionPay business mainly." So for the new entry of other third-party payment enterprises, the western region, the two or three-line city competition is relatively low, the market demand is more and more urgent. Meng, senior analyst at Analysys International.

Market shuffle or will accelerate

Payment industry's main profit is to earn the difference, such as trading 1000 yuan, settlement to the merchant 995 Yuan, to the bank 2 yuan, their own earn 3 yuan gross profit. In recent years, as more and more enterprises are entering the company, the rate of payment to the merchant has dropped from 5 per thousand to 3 per thousand.

With the escalation of competition and the continuous innovation of business model, can the Third-party payment enterprises break through the "price war"? Meng said that the current third-party payment industry development trend of roughly three aspects: one is to expand the new market segments, such as colleges, non-tax, funds and so on, expand the existing business scale, the second is to open up new business, such as mobile payment business, POS receipts business, etc., the third is to carry out business extension along the industrial chain, to provide integrated solutions.

Industry insiders believe that the payment industry or will usher in a clear "shuffle", within a few years "separatist" market enterprises may not exceed 5.