Advantages and disadvantages of online bank payment business and third party payment business

Online Banking payment Business

Content: Online payment, online payment, credit card repayment, etc.

Nature: The main body of banking internet business.

Characteristic: The bank transaction Service System server is connected directly with the bank internal network, provides the on-line transaction service.

Scope of business-at present, our bank-run online banking business to transfer, payment and funds transfer, such as the main charges.

Cost-use of public network resources, no need to set up a physical branch or business outlets, reducing personnel costs. Improve the efficiency of the bank backstage, reduce the operating costs of banks.

Operational aspects-break the traditional banking area, the time limit, can at any time, anywhere, in any way to provide financial services to customers, which is conducive to attracting and retaining quality customers, but also the initiative to expand customer base, to open up new sources of profit.

Service--Online banking can provide low-cost, detailed information consultation, effectively solve the business network is difficult to provide comprehensive information services restrictions, online stock and bond trading to provide customers with more appropriate financial services.

Disadvantages：

1. Whether the business itself or the network system security, there are greater risks. and such as online absorption of deposits, loans and other operating risks, direct formation of bank assets or liabilities of the business, China has not yet opened.

Cumbersome operation, the need to download the certificate, installation u shield, login network Silver interface, u shield password, payment password, to determine the payment of a series of operations, making online payment is too complex, wasting time wasting energy.

At present, the internal control mechanism of banks is weak, the technical foundation is poor, and the Social Credit system is not perfect. The policy provisions are not clear on the definition and scope of online banking, market access conditions and procedures, internet banking security, the protection of bank clients ' lawful rights and interests, and the regulatory requirements of online banking business and legal liability.

Contents: Currency Exchange, Internet payment, mobile phone payment, fixed telephone payment, prepaid card issue and acceptance, bank card receipt, etc.

Nature: A kind of online payment-oriented, bundled large E-commerce web site of the Internet-type payment enterprises, to pay Bao, Tenpay, Sheng led; A class is focused on industry demand and the development of industry application of financial-type payment enterprises, to UnionPay electronic payment, fast money, remit to pay the world led.

Characteristics：

Security-credit card information or account information only need to inform payment intermediary, not each payee, greatly reduce the risk of credit card information and account information compromised, and payment guarantee business can to a large extent to protect the interests of the payer.

Cost Aspect-the payment intermediary concentrates a large number of electronic small transactions, forming scale effect and paying lower cost.

Operational aspects-the interface is more concise than the bank's online business, and the payment process is convenient, which saves time and energy for those who do not understand the Internet business. such as mobile phone fast payment, just send a verification code to the phone and then type the interface, you can complete the payment, saving the Banking network login bank interface, type card number, insert U shield, input key, payment password, confirm the transaction and so on complicated operation steps.

Service types-enterprises mainly concentrated in E-commerce, travel tickets and other small payment business, the amount of a single transaction is not high, competitive platform relatively homogeneous, now many third-party payment enterprises have begun to expand new business categories.

Future prospects--based on third-party payments of the fund online direct sales will usher in a new development, from the current 5% ratio will rise to 30%, the fund industry to sell the main distribution pattern of bank sales may gradually change, third-party payment companies will begin to bear large payment transactions.

Disadvantages：

Based on the payment model of virtual payment layer, other "actual payment mode" is needed to complete the operation of the actual payment layer.

The payer's bank card information will be exposed to the Third-party payment platform, if this Third-party payment platform is poor credit or confidentiality, will bring the relevant risk to the payer, due to a large number of funds in the payment platform account, and the third party platform non-financial institutions, so there is the risk of capital deposit.

The third party settlement payment intermediary's legal status lacks the stipulation, once it ends bankrupt, the consumer buys "the electronic currency" may become the bankrupt creditor's rights, cannot obtain the safeguard.

Banking internet Business

With third party internet business

Differences

Third-party payments relative to the banking business, has a more humane payment platform, serious cooperative attitude and faster approval process and turnover speed, fast and easy operation and lower transaction costs.

Although the banking internet business involves a wide range, but complex trivial, the core business is not strong, large transactions can not be directly completed online, while the third party payment business is more focused, in the payment field has a more consistent with the way people are accustomed to trading, for payment transactions to bring more assurance.

The issuance of the third party payment license broadens the platform of business development model and brings the challenge to the bank's online business, but the third party payment still needs time and space growth based on the restriction of the State policy and other factors.

The complexity of the bank's security technology, the same bank has more than 10 different types of U shield, so that customers in the choice, operation is very difficult, there are certain requirements for terminal equipment, but also may appear incompatible and so on.

Third-party payment solves the restriction of terminal equipment, frees the consumer from the equipments, the customer can do the payment at any time, anywhere, in various ways, not only saves the time cost, but also eliminates the inconvenience caused by the loss of the U Shield and other safety equipment. But for the Third-party payment enterprises without the offline marketing point, if the supervision is omitted or the system fails, it is likely to make the funds deposited into the third party have no root to find, resulting in the irreversible plight of payment process, to consumers and electric dealers and other charging parties to bring inconvenience.