Apple pay hard to change China's mobile payment pattern

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Almost everyone is sure it was Apple's most failed product launch since 2007, "Reinventing The Ugly iphone 6" and "iphone 6 Plus", as well as the Apple Watch they don't want to understand, but it's not a problem for apples, Apple Pay, though only 10 minutes into the press conference when it released its most promising product in two years, could be a huge source of revenue for the future and the backbone of Apple's share price.

1, analysis Apple Pay

Most of Apple's revenues now come from highly profitable hardware sales, with a small share of itunes and App Store sharing with developers and record companies. In the development of ipod ITunes, and iOS App store downloads, Apple has accumulated a huge number of binding credit card users, the iphone's users around the world has 330 million people, the 300 million-plus backup users may be Apple Pay users.

The fingerprint identification touch ID added to the IPhone 5s became the Apple layout in the payment field an important piece: Fingerprint identification belongs to biometric, is currently safe and efficient and convenient payment method (payment field, security and convenience is a pair of problems, fewer steps simpler verification will inevitably bring security risks, Biometric recognition solves this problem to some extent.

The IPhone 6 release requires only one NFC chip, which is the last part of the payment, and a perfect payment loop is formed. Apple, in fact, has been doing this and has been planning for a long time, not reacting to its opponents at all (from this point, Apple Pay is the most jobs-oriented product of the conference), Apple Pay was born in its prime: with Visa, MasterCard, with three of the biggest issuers of American Express, joined six big banks, covering 22,000 retailers.

Apple's NFC payment, instantly changed the entire U.S. payment industry direction and future, whether it is Google-led Google Wallet, or PayPal, Square and other flagship online payment or NFC, undoubtedly have to follow the big footsteps of Apple, not because of other, Just because it's called Apple.

Apple offline payment leverages NFC technology, uses a Touch ID to encrypt authentication, and puts user information on "secure Element", similar to the "secure Enclave" principle of Touch ID information, and the user's payment information is stored on a chip inside the phone. Apple will not be tracking the amount of transactions and places such as payment information, trading information limited to banks and businesses know. Because NFC payment is the need to be able to read NFC chip POS machine, the transformation of old card Pos machine is a vast project, since the beginning of Apple has so many collaborators, it can be seen that Apple in the business co-operation negotiations under the full effort to Fengfengguangguang on the stage so many partners listed.

Apple pay can also be used for online payments, except that it does not have to pass NFC to swipe the credit card directly by verifying the fingerprint.

Apple's payment is equivalent to tying cards, and there is no concept of the pool of funds, trading is only between the merchant and the user, Apple is the channel role, in fact, this is similar to Alipay first quick payment. Apple pay is said to be charging fees to banks, a huge amount of mobile money that is naturally a big deal and may be no less than the revenue from the App store. But it also means that Apple will not be in the Internet financial sector for the time being except to pay. (Micro-letter 5.4 in the micro-letter payment with a micro-letter wallet, with a pool of funds, micro-credit payments will be in the Internet financial aspects of greater action.) )

2. What effect does Apple pay have on China Mobile payment?

At present, China UnionPay is actively contacting Apple, hoping to set up standards in China.

China currently has two of the power to pay offline, one is UnionPay, operators and some NFC manufacturers advocate the promotion of NFC payments, one is to pay Pao and other Internet companies to promote the sweep code such as sound waves through the Internet channel mobile payment.

Alipay and micro-mail through the taxi to pay the war, buy shares and transform the market to pay the environment, in the voice has been higher than NFC payments. In the NFC Camp, UnionPay and operators have been fighting in the main power, Offline POS machine transformation has been slow to get on the right track, UnionPay's flash payment although the promotion, but no such as Apple players joined, has been in the experimental stage. Some of the original mobile phone to add NFC capabilities, because the delay is not commercialized, but also withdrew, Millet 3 and the charm of the MX3 have NFC payment function, subsequent models of Millet 4 and MX4 have been canceled NFC module.

Since Apple supports the NFC model, at least half the world, NFC will have a whirlwind in the future. UnionPay positive to the good apple, naturally want to borrow Apple's Dongfeng, the UnionPay's own NFC flash into Chinese standards.

My judgment is that the negotiations will not succeed, and that UnionPay and Apple will not co-operate in China. According to Apple's strong style, since has its own standards and closed-loop, why can allow others to insert a shoulder. UnionPay's position in China also suggests that UnionPay will not be too much of a benefit to Apple, and that it has never been soft on Alipay. It is not difficult to draw this conclusion in the light of years of hard negotiations between China Mobile and Apple.

To say touch, Apple, since it wants to release the iphone 6 with the payment function, must greet the market's dominant manufacturers before releasing it. As I know, before the IPhone 6 was released, Apple looked for some major standards from companies such as Alipay.

Can Apple's pay of NFC payments be an advantage in China? Now it looks hard.

NFC payment to transform a large number of POS machines, a transformation cost of 1000 yuan, the current China's 10 million POS machines, NFC function of 3 million, the cost of light transformation will be 7 billion, this money who out?

The NFC payment chain, UnionPay, operators and Apple and other mobile phone companies want to dominate, UnionPay and mobile just unified the NFC technology standards, now 12125.html "> Apple Pay Standard again out, the merchant opinions."

Internet company-led sweep code such as mobile payment, Alipay wallet and micro-credit payment are two big players, although there is a competition between the fundamental purpose is consistent, whether through sound waves or two-dimensional code, are connected to the world means. The benefits of Internet mobile payment is the low cost of transformation, through the drop of fast taxi promotion, quickly swept the country.

But unlike the Youboy on the internet, online payments require a lot of patience and time to push, and the Alipay purse, which is good at doing the pushing, runs faster than the micro-letter payment, and is one step ahead in the public transport and hospital sectors.

But the best line is not internet companies, so mobile payment, those traditional era "contractor" and "Mason" more patience and advantages. In the face of nearly 30 trillion of the credit card consumption, the mobile payment industry chain may not produce the traditional giants, whether the Internet companies or NFC industry chain, can share a piece of the pie.

However, while more bullish on sweeping-code payments, internet companies have not given up on NFC attempts, Alipay 8.0 has joined the NFC payment, with the fingerprint payment of Huawei Mate7 also cooperation. The balance of future mobile payments no matter which side, smart Internet companies will not fall.

(Disclaimer: This article only represents the author's opinion, does not represent Sina's position.) )