For traditional financial giants, the challenge from the internet is just beginning.

Summary: One is the bank card payment clearing giant, the other is the Internet third-party payment of the leading boss, but for a small POS machine. Recently Alipay announced: Due to the well-known reasons, Alipay stopped offline POS business, which also means the previous branch

One is a bank card payment clearing giant, the other is the Internet Third-party payment of the leader, but for a small POS machine. Recently Alipay announced: "Due to well-known reasons, Alipay stop offline pos Business", which also means that Alipay in the merchant laid tens of thousands of POS machine investment all hit the water drift. A lot of people are pointing the finger at UnionPay. Prior to this, UnionPay once to its members of the Shanghai Bank heavy penalty on tens of thousands of yuan, the reason is that Shanghai Bank will be its own in UnionPay's receipt of the agency number to the Alipay, for POS card business. In a small device such as a POS machine, traditional banks and emerging Internet forces have had a fierce collision.

Two companies dominate their sphere of influence. The advantage of UnionPay is paid online. According to a study released by Sadie's consultant, in 2012 China's third party payment market, UnionPay's UnionPay business was ahead of 45.9% of the market share, plus several other companies, the entire "Silver link" market share of more than 50%. Alipay has firmly ruled the internet payment market. In the first quarter of 2013, China's third-party internet payment market accounted for 46.3% of the market share, according to the Analysys think-tank, another research institute.

They compete for a large market in which the turnover is measured in trillions of dollars. According to the report of Sadie Consultants, China's third party payment market in 2012 the overall size of the transaction exceeded 10 trillion yuan, to 10.4221 trillion yuan, if the rate of 1% settlement procedures, it will be brought to the financial institutions of hundreds of billions of dollars of income.

However, the composition of this tempting cake is also changing rapidly. 2012, the Internet to pay the size of the transaction has reached 3.8412 trillion yuan, accounting for the third party to pay the overall size of the transaction of 36.9%, its growth rate is as high as 70.46%, far more than the line of growth. As more and more consumers choose to trade online, the size of the Internet-paid transaction is likely to exceed offline payments over the next few years.

Also, internet companies, represented by Alipay, are eyeing lucrative online payments. The POS business is the most important of the offline payment business, which occupies more than 90% of the total offline payment business.

March 2012, Alipay announced that it will invest 500 million yuan in 3 years to enter COD (C.O.D.) market, and for offline payment to provide 30,000 POS terminals, which is also Alipay first involved in offline payment, including logistics POS payment Scheme and the electrical business logistics to pay two parts, Alipay introduced the POS machine can integrate credit card and waybill information management function, after The courier company's distribution staff no longer need to carry UnionPay POS machine. When the Jing-dong, suning and other electric operators rely on a better online experience (including logistics, distribution, etc.) to win more and more customers, as the industry boss Alibaba further improve its electrical business offline experience has become a matter of course.

Although Alipay Vice President Genming repeatedly stressed that Alipay will only pay attention to the electricity line, will not go to the bank in real estate, car sales and other traditional offline POS consumer market, but this still caused UnionPay's vigilance. Because the lesson of Internet payment is right in front of us. It is understood that in the Internet payment business, Alipay, Tenpay and other third-party payment agencies have a stronger bargaining power, they paid to the bank of the actual processing rate of only about 0.1%, significantly lower than the UnionPay network of 0.3%-0.55% of the price level, which indirectly reduces the income of UnionPay.

Who can guarantee that they will not impact the income paid under the UnionPay line? In fact, they are already doing it. In the past, the rules of the online payment game were made by UnionPay. 2003 UnionPay issued the "China UnionPay Network bank card cross-line transaction income distribution Method" stipulates that each POS machine receipts transactions in accordance with the proportion of 7:2:1 distribution, that is, issuing bank accounted for 70%, the receipt of institutions accounted for 20%, clearing institutions (UnionPay) to take 10%. In general, a merchant with a POS machine needs to take 1% of the turnover as a settlement fee, which means that UnionPay can take 0.1% of the turnover. In addition, UnionPay has also extended to the upstream of the industrial chain, and UnionPay's UnionPay business is also dominant in the receipts business, and is able to get another 0.2% of the turnover.

Now, mad cow suddenly broke into the porcelain shop. Third-party payment companies began large-scale access to the offline receipts market, they work directly with the bank, bypassing UnionPay, large-scale deployment of POS machines in businesses, which has threatened the monopoly of UnionPay business.

On the other hand, the third party payment is also "collusion" with the bank, changing the way to bypass the settlement channel of UnionPay. According to the rationale, as the only renminbi bank card interbank payment clearing institutions, China's more than 140 banks issued 1.4 billion cards, as long as the cross-border transactions are to be liquidated through UnionPay. However, the Third-party payment company still found a way to circumvent it. Due to the settlement of different transaction types, the rate is different, some third-party payment companies through the transformation of trading channels and types of transactions, such as the settlement of higher rates of collection and payment, transfer, and other types of transactions applied to the scene of consumption transactions, reduce the cost of pay UnionPay. Some of the larger third-party payment companies are opening accounts in a number of banks and reaching agreements with these banks to hedge directly between bank accounts. Of course, since most third-party payment companies do not liquidate directly with UnionPay, they must use the power of the banks. UnionPay after investigation found that there are 29 third-party payment companies with the bank's UnionPay card business interface of more than 630, on average, each third-party payment company connected to 12 banks.

The huge impact from the internet made UnionPay sit on its own. UnionPay set up a silver network on the payment of companies such as the Internet, for their own advantage of the offline payment market is further reorganization.

In addition to the recent punishment of the Shanghai bank, there are a lot of similar movements of UnionPay. The founder of a third-party payment company sadly recalls the experience of their POS billing business: Since all POS machines require the technical certification of UnionPay, they are required to provide a wide variety of documents and information to back and forth a lot of time. When they gathered all the information, they found that the POS machine of UnionPay business was already full of local shops. November 2012, the third party payment company Lakara in a few days unexpectedly received hundreds of complaints telephone, almost the customer service phone, these calls are complaints can not through Lakara to the CCB credit card repayment. It is also the price of Lakara trying to bypass UnionPay, industry insiders say: Before Lakara tried to bypass the settlement channel of UnionPay by setting up account hedges in a number of banks, without noticing that her account position at one bank had gone.

As the only renminbi bank card across the country to pay clearing institutions, UnionPay in the intangible and assume the role of trade associations and even arbitrators, which also makes it to third-party payment companies have a strong deterrent. Now it plans to exercise its power further. In July 24-the 25th of the UnionPay Board of Directors it set a goal: Before December 31, 2013, the complete completion of non-financial institutions under the line UnionPay card trading business migration, unified to send UnionPay transfer, synchronous standard Internet UnionPay card payment business; before July 1, 2014, Non-financial institutions to achieve the Internet UnionPay card transactions full access to UnionPay. If the goal of UnionPay is achieved, it means that all third party payment companies in the past "concerned, subterfuge" action will be difficult to achieve, resulting in a significant increase in their operating costs, the final result will be the "Regular Army" defeated by UnionPay.

Of course, to achieve this goal, UnionPay must urge banks to work with them to clean up their UnionPay card business interface with third party payment companies, and to take them all to Headquarters. For the moment, most banks have a rather ambiguous attitude. One bank's electronic banking ministry said it would put some of its business in UnionPay, but would not cut the channels for other third-party payment companies. Some third-party payment companies, he argues, can generate huge volumes and capital deposits, and banks have to resort to their strength.

For the impact of the Internet, former China Merchants Bank President Ma Deep Experience: "We are in the network era, do not think that the traditional things will be Enron." We are not going to resist, repel, or even hate it, and we need to welcome it and greet it together. In the future, the development of the Internet will be more far-reaching to the challenge of traditional banks ... "the challenge from the internet has just begun for traditional financial giants."