E-Payment 2.0 era: Starting at 06, becoming 07

2006 is to pay the market is full of suspense year, but also full of vitality and "fight" year. In the coming year, the intense competition in the pay market often gives the question of why the electronic payment market has not yet entered the blue sea, or that it has become a "bloody" Red Sea when it is just realized that it is a blue sea. In fact, this is not very clear in the context of the policy, the market is in the spontaneous rise of the inevitable "chaos" situation. In my opinion, this also validates that market demand is awakening and becoming more diversified, with the dual role of policy regulation and market trend, electronic payment has been gradually entering the era of electronic payment with diversified platform and on-demand payment as the business characteristic of the 1.0 era with pure payment gateway. Full of suspense and change, but also full of fighting and competition in the 2006, it is to pay the beginning of the 2.0 era, and 2007 will witness the Electronic Payment 2.0 era towards maturity.

Is the 2.0 era just a digital game or concept hype? Of course not. The emergence of an era, must be in technology, application, business model of a qualitative leap. What we call Payment 2.0 The era first has a clear definition of the market role--non-bank financial value-added service providers. At the same time, the 2.0-era payment has freed itself from the image of a pure technology platform, rising as an innovative economic power to provide complete payment solutions and even e-business solutions. Through a diversified payment platform, so that consumers, businesses, banks in the Internet, mobile phones, fixed, PHS and other payment terminals meet, will pay itself embedded in the industry development, to provide industry characteristics of the payment model. The commercial value it brings is not only to solve the payment problem itself, but also to optimize the business process, improve the service quality, and even the opportunity to pry the market.

In order to have a clear understanding, we may as well start from 1.0 times. Since 1998, after the first Internet bank, the net gateway payment after nearly 7 years of development, has been the largest market share of the payment method, but its positioning as "middleware" or "strips" market value, the lack of value-added services business model can not meet the needs of the market. At the same time, pure Gateway payment technology threshold is very low, it is the homogenization of the competition caused people to mistakenly think that the payment industry has not entered the "Blue Sea", Advanced "Red Sea". It also shows that the payment of 1.0-era products will not be enough to support the increasingly rich level of demand for payments, and the arrival of the 2.0 era will be unstoppable.

Make a simple comparison with electronic Payment 1.0, 2.0 times in the internal factors and external factors under the dual role of a six significant trends: policy standardization, market benign, means diversification, value-added services, application industry and demand customization, and the corresponding characteristics of the two major inflection point of the arrival.

One is the policy inflection point. 2005 by the industry unanimous as the first year of electronic payment, following the familiar online payment by more and more businesses and consumers recognized and accepted, telephone payment, mobile payment, member wallet payment, SMS payment and other new electronic payment concepts and applications in the past years have emerged. With the growth of the payment enterprise's own strength and the increasing participation and importance in various economic activities, the management of the settlement organization and the corresponding issue of licensing will soon be announced, suggesting that electronic payments, which have been in grey areas, will be formally incorporated into the financial regulatory system, and thus the development of the payment market will be introduced into the rational and normative track.

The second is the inflection point of market opportunity. This includes the traditional industry to E-commerce, industrial application of large-scale explosion and the end of the market Awakening triple content.

The first is that the demand for payment is no longer limited to the Internet, but is widely infiltrated into traditional industries. Because with the economic development and income increase, the use of cash will certainly be less and less, at the same time, more and more traditional industries in the electronic commerce stride forward, such as education, publishing, tourism industry, they need electronic payment to support to make it a complete chain of E-commerce cycle.

Secondly, industry demand-oriented applications began to become more and more prominent in the 2006, such as the current large-scale electronic ticket to replace the paper ticket, is the first time the industry changes triggered by the large-scale demand for electronic payments, which is a significant opportunity for electronic payments, It is also the first time that China's market has shown the complementarity between economic development and payment development. Since the electronic ticket began to enter the market, telephone payment and other off-line electronic payments also showed its vitality. In addition, tourism, digital products, online games and other key industries have formed a large demand for electronic payment, which requires the payment enterprises according to industry characteristics to plan their own payment products, rather than provide an interface.

Another prominent manifestation of the inflection point of market opportunity is that electronic payment is gradually moving towards individuals. In countries where electronic payments have grown more mature in the United States, 2/3 of the electronic payment transactions are provided by C-class users, in China, electronic payment has been brought about by the efficiency and convenience has been recognized, the modern life of efficiency requirements make people realize that the use of electronic payment will save a lot of time costs for themselves. Also because of the germination of this demand, and even in daily life, some transactions that were not considered to have payment problems are now considered to have payment problems, such as common utilities and mobile phone charges. Yeepay Yeepay on with Unicom, ICBC Beijing Branch, Beijing Bank, China Merchants Bank Beijing branch on the basis of the introduction of mobile phone timely charging services, to solve the purchase card recharge, bank queuing to pay the trouble. In the course of business development, we also found that the application of the electronic two-dimensional code to make movie tickets, park tickets, event tickets and so on can be sent to the mobile phone electronic tickets, such as the daily life of the face-to-face transaction application will make the electronic payment gradually from the consumer-driven phase of the transition to Consumer initiative to participate in the stage. The unusually hot issue of electronic payment security, which has recently been discussed, also explains to some extent that more and more people are using electronic payments to pay attention to electronic payments, hoping to enjoy the fast life experience brought by electronic payment.

Based on the above two inflection points, the development of payment industry into a new market period, its typical characteristics is-on-demand payment. In the face of the differences in industry, the specific needs of enterprises, the difference of consumption habits and the maturity of the market, whether to help customers realize on-demand payment becomes an important basis for measuring the core value of payment enterprises. On-demand payment requirements based on a wide range of payment platform, can integrate online, offline a variety of payment methods to help consumers through different payment terminals and merchants Unicom, and the specific needs of businesses to provide the corresponding services. In addition, around the payment of value-added services is to pay 2.0 times another demand, put forward an effective solution to help businesses even the entire industry to electronic, how to optimize the business process, how to help businesses to promote the market ... These have become a matter for the payment enterprises to consider. Of course, in the current Chinese businessmen and consumers in the electronic payment is still relatively passive situation, the dominant demand is still the electronic payment service provider. By electronic payment service providers to explore the industry, business needs, creative to solve problems, and promote the relevant enterprises and industries business model.

We believe that with the official release of the payment liquidation organization in 2007, the Payment 2.0 era will quickly mature, electronic payment will go into the industry application, so as to truly enter the daily life of ordinary users. Of course the products of the 1.0 era will continue to exist in the 2.0 era, or be compatible with the 2.0 era, but we will see that even the gateway payment, will be hit the 2.0 times on-demand, according to the size of the transaction volume, the different application areas show flexible business characteristics.

We can predict large but, by 2007, with a clear direction of the industry and the direction of application, the strength of the payment company will further expand its business advantages, far beyond the same quality gateway-oriented enterprises. In addition to the current market prospects of the ticketing, education, tourism, games and other industries, there will be more industries to pay the demand for electronic payments, such as the purchase of funds, residential property charges. Data suggest that 60% of consumers who do not currently use electronic payments are for security reasons, so if we can create a consumer-dependent electronic payment network next year, we might as well conceive of a scenario in which payment is a central point, which includes the network payments that businesses and consumers need, Telephone payment, mobile payment, SMS payment, credit card payment, etc. it will radiate to the life of a few blocks: first, the cultural and recreational life, including games, movies, e-books, ringtones and other things can be electronically transmitted content; Second, the daily consumption, such as mobile phone recharge, shopping mall, ordering flowers and gifts, etc., the third is personal finance, Including fund investment, self-organizing bank account and so on. Of course, the payment market is changing at any time, and we cannot tell exactly what the next year's payment market will be, but we believe there will be more and more innovative applications, and more and more consumers will join the electronic payment. Drawing on the era of Internet, in the further future, when the payment platform and banking financial services are flexible and diversified, I would like to pay "on-demand", which is the "on-demand payment" that is proposed by the 2.0 era, which is still dominated by the payment service provider.

Generally speaking, electronic payment is still the biggest bottleneck of the development of e-commerce, and the payment of the rich industry application in the 2.0 era, and the prospect of extending to the daily life in the mature period, are not only the breakthrough of the payment industry itself, but also the important significance to promote the Internet development and innovation economy In the course of payment of 2.0 of development, government agencies, banks, trade associations, payment enterprises will form a good cooperative relationship, and each payment enterprises can also be tailored to China's national conditions and industry characteristics to provide a wide range of on-demand payment services. Believe that every one has the strength of payment enterprises in the 1.0 times after the chaos will be in the 2.0 era to find their own positions and blue sea, and jointly promote the payment industry to take off.