Graduate student of Finance Department of Nanjing University, research on bilateral market theory

The finance Department of Nanjing University is studying the bilateral market theory. In this paper, she sums up the main forms and development reasons of social payment, and combs the relevant cases at home and abroad. In her view, the integration of virtual social and online payment is an important trend in the current internet age, depending on the status of the subject, there are two manifestations: social platform-led, such as domestic micro-letter, micro-blog, foreign Twitter, Facebook, etc., to pay the platform for the lead, such as domestic Alipay wallet , foreign can, chirify, Dwolla, etc.

The manifestation of virtual social and online payment fusion

The integration of social and payment is an important trend in the current internet age, the integration of the two, according to the different status of the main body, there are a variety of manifestations:

One is to take the social platform as the lead, payment as a value-added service, payment platform to provide ancillary services. The social platform opens its payment function, initially for users to buy virtual goods services on social platforms, and then to a wider range of e-business, where users browse through advertisements posted on social platforms and pay for the product services of offline or online merchants through social platforms. Accordingly, there are also two types of social platform to carry out the payment function mode:

(1) The virtual currency of social platform, payment function to serve the purchase of virtual goods services, users need to use real money to exchange the virtual currency, and the means of exchange can be paid by the net, Third-party payments, mobile phone recharge payments, etc.;

(2) Social platforms outsource payment functions to third-party payment companies, and add a Third-party payment company API to a social platform that enables users to pay through the payment APIs on social platforms between individuals, between individuals and businesses.

The other is based on the payment platform, social elements as a platform to promote and increase the customer experience means. Because people often have a need to pay for their social activities, the payment platform, in response to this demand, allows users to associate social platform accounts on the payment platform, facilitate transfer payments to social friends, and synchronize payment information to social platforms, in turn, This social-related function stimulates and attracts more users to use the payment platform.

At home, social and payment integration is mostly a social-platform approach, one that serves individual users ' social payments between friends, and on the other hand serves on the social platform for E-commerce transactions, and the payment platform is the technical support behind social-payment functions. In foreign countries, there are two ways to combine social payments, which are both social platform and payment platform.

This difference may be due to the differences in market structure and competition mode. At home, the Third-party payment platform is still mainly Alipay, accounting for most of the Third-party online payment market share, micro-letter before the launch of 2010 years Alipay accounted for the online payment market 51.2% share, 2013 3 quarter of its market share of up to 48.8%. Other payment platforms, in the competition, have chosen to be behind the scenes, working with social platforms to integrate payment functions into social platforms to gain market share through the social platform's user traffic.

On the other hand, the domestic social platform is diverse, in order to win the market also wants to expand the platform the payment function. In recent years, a variety of new payment applications, social applications emerged. The variety of payment applications, especially mobile payments, has prompted the payment platform to increase the user's usage by connecting with the social platform, while the social platform has competed to develop the payment function of the platform to gain more revenue.

Second, virtual social and online payment integration reasons

1, the online extension of personal social demand, the payment of virtual goods transaction needs

In real social activities, the gift of congratulation is a way to strengthen the feelings, and virtual society has become a complementary way of social activities, gifts of virtual gifts are naturally generated, in addition, in reality, people can symbolize status through certain substances, access to social recognition, in the virtual community. Social networking sites are responsive to this social need, and users need to pay online to sell virtual goods, such as virtual gifts and virtual outfits, to get more profit.

2, social platform into the payment function, management application of income sharing needs

Social platforms incorporate payment functions into the platform, users use social platform applications (such as games) to pay through social platforms, and social platforms can clearly understand the benefits of the application, the management, and the partitioning of application developers.

3. E-commerce to promote the use of social platforms, online purchase of goods need to pay

As social networks are popular, the Word-of-mouth effect is strong, more and more offline merchants, through the social platform for product and service promotion, social platform to adapt to this trend, e-commerce integration into the social platform, the purchase of online goods if the completion of the social platform will greatly enhance the user experience, reduce transaction costs.

4, the payment platform interconnection social platform, attracts the user, the promotion service need

Real social activities, such as friends dinner, holiday gifts and so on, these are inevitably involved in the payment of funds. and the payment platform and social platform interconnection, users through the payment platform can directly to the online social circle of friends to pay, will greatly facilitate the user, improve the user experience, and through the sharing of social platforms, for the payment platform to do a free promotion. Interconnected with social platforms, it becomes a means of payment platform for customers.

5, payment and social platform interconnection to generate more shared data for the use of large data to create conditions

Whether the payment platform to introduce social functions, or social platform to introduce the payment function, the richness of the platform to create more platform use behavior, which brings users more data, such as social circle data, geographical data, user consumption data, bank account data, etc., using this data, Both the payment platform and the social platform can improve the user information, and then carry out more targeted marketing or product service design.

Virtual social and online payment integration cases (current situation)

(a) Domestic social platform to carry out the payment function case

1. Micro-letter--micro-credit Payment & micro-credit Red envelopes

Micro-Credit Payment:

In the micro-letter 5.0 version began to introduce micro-credit payment, payment and security system by Tencent's payment platform "Tenpay" to support. Users only need to associate a bank card in the micro-letter, and complete the identity certification, you can purchase the goods and services of the cooperative merchant. Users need to enter a 6-digit password when paying, without any swipe steps.

Online, users can scan the static two-dimensional code, generate micro-letter payment Transactions page, online, users can scan the PC-side two-dimensional code, jump to the micro-credit Payment Transaction page, complete the transaction process. Users can also be in the micro-letter to focus on the merchant's micro-letter public number, in the Merchant's micro-trust to complete the purchase of goods and services.

Micro-Credit Red envelopes:

Micro-letter Red envelope is a micro-letter in the 5.2 version of an application, the user binding bank card, you can through the "New Year's red envelope" public number to send red envelopes to friends, the recipient opened red envelopes, can be tied to the bank card to obtain the benefits of red envelopes. However, after the Spring Festival, the micro-trust team to improve the function of red envelopes, to support the unbound bank card extraction or transfer of money in the red envelopes.

2, Sina Weibo-micro-bo Pay & Micro-wallet

Weibo payment:

In early 2014, Sina Weibo and Alipay through, in the personal homepage added "micro bo pay", users can be their own micro-blog account and Alipay account, Taobao account, in the micro-blog to buy goods or member services, directly enter the digital password can be, after the successful order payment, Users can choose whether to pay attention to the merchant according to their own needs, or to share the product to the friend to recommend. This is for Weibo and Ali to create a "browse-interest-order-pay-share" social marketing closed loop.

In addition to the account system to get through, Sina Weibo and Alipay also exchange two-dimensional code, users use micro-blogging client or pay Treasure Wallet client, can be scanned offline merchant issued two-dimensional code to pay. The central bank last month suspended the two-dimensional code payments, another matter.

Micro Wallet:

In fact, before the introduction of micro-bo payment, Sina used its own "new pay pass" payment license to launch the "micro-wallet" online payment platform. Users use micro-blog account login and binding bank card, can be on the platform for Water and electricity, mobile phone recharge, personal transfer, buy lottery tickets, micro-public goods, buy financial products and so on, but also in micro-blog browsing business preferential information directly to pay.

3, watercress-related Alipay

Watercress in 2011 has launched the associated Alipay function, users can be associated with second-hand trade in watercress, buy movie tickets and so on, and directly through Alipay to complete the transaction.

4, Renren--Everyone beans & mobile Security Payment

Everyone bean:

Everyone bean is the virtual currency of Renren, used for virtual gifts, homepage dress up, play games and other online application services to pay. Users can through the net silver, Alipay, June card straight, mobile phone recharge cards, everyone card, Paypal (U.S. dollars), Mycard (NT), SMS Broadband payment, Lakara and other ways to their own or friends of all beans recharge.

Mobile Security Payments:

This is a new payment channel offered by Renren Open platform to third party developers. It still uses "everyone bean" as the main trading currency, but optimizes the process and embeds the payment function into mobile applications. For example, when users use online games for everyone, they can use the virtual props directly, and the "mobile security payment" will lead users to recharge.

5, kaixin-Happy currency

and Renren similar, happy coin is the virtual currency, used to buy a variety of value-added services, users can through the net silver, Alipay, China line recharge cards, Unicom recharge cards, mobile phone recharge and other ways to recharge happy coins.

6, Qq--q point &q coin & silver Piece & Gong

Q Point, Q coins, silver piece, game Gong can be used to buy all of Tencent's business and game props virtual currency, can be in the QQ Recharge Center, QQ game Payment Center, Super QQ Payment Center, using tenpay, bank cards, fast payment, mobile phone recharge cards, mobile phone recharge.

(b) Cases of introducing social functions into the domestic payment platform

Alipay Wallet

Add a "AA" feature to the Alipay Wallet 8.0 users and friends for entertainment, for friends to pay, you can click the AA button to find the surrounding members, these are AA users to enter the interface, pending payment amount to the payer sliding screen to complete a AA consumption transfer payment.

(iii) Foreign social platforms to carry out payment function cases

1. Facebook Social payment development

(1) Virtual currency credit:

2011 Facebook launched Credit, which is a virtual currency for Facebook, which can be seamlessly transformed into nearly 50 currencies to pay for virtual goods and services on Facebook. Credit can be recharged by a card, PayPal, mobile phone number, gift card (Facebook) and the country's main third-party payment platform.

Facebook also founded a subsidiary of Facebook Payments Inc., which helps developers specialize in payment operations related to the Facebook virtual currency credits project. But at the end of 2012, Facebook terminated the use of credit, replacing it with the payment API, which directly binds the cards and Facebook accounts to pay for virtual goods services.

(2) PayPal Facebook version of online payment application

November 2011 PayPal launched the online payment program for Facebook "Send money", Facebook users authorized PayPal access to a list of friends, you can enter the e-mail address or directly type the name of a friend, Sending a card to a friend at the same time to send him or her money, or not sending cards direct remittance, this can achieve domestic or international remittance, online payment.

(3) Interconnection payments between the Commonwealth Bank of Australia (Commonwealth Bank) and Facebook

Clients at the Federal Bank of Australia can use the CommBank app to associate their Facebook account with their Facebook friends and pay their money for the transfer.

(4) Facebook will launch an electronic currency to get involved in mobile payments

In April 2014, Facebook was licensed by the Irish Central Bank to allow the release of electronic money that could be saved on Facebook and made available to others, and would be circulated across Europe through the passporting process. Facebook has been working with at least three international money transfer services, but the specific service plan has yet to be announced. All three companies offer international remittance services, namely Transferwise,moni Technologies and Azimo.

2. Twitter social payment plan

(1) Twitter message payment

In February 2013, Twitter worked with American Express, where American Express card holders tied their credit card accounts to Twitter accounts, and by sending a tweet with a designated hastag, they were able to buy gift cards, Kindle Fire, Xbox 360, jewellery and other commodities.

(2) Payment API for Commerce tweets

At the beginning of 2014, there were also news that Twitter would work with Fancy.com, an online payment provider, stripe, to launch commerce tweets that users could see on Twitter apps and pay for their purchases directly on the app, can also inquire about the status of commodity logistics, with the help of Stripe Connect service, network merchants do not need any account, you can accept credit card payment.

(iv) Cases of introducing social functions into foreign payment platforms

1, can

Can is a small-payment mobile app that allows users to bind a bank account or credit card to a can app and make payments via mobile apps or text messages. Affiliate Facebook and Twitter buddies to make transfers between friends on the app.

Can is characterized by the social interest of paying. For example, you can call the can API, use can to advance a small sum of money, choose a good place (such as a café or bar), a gift amount, and which friends are eligible to find it, and then the first friend to sign in that place will get the gift.

Also, if you organize an activity and bear all the costs, you can collect money from all participants through can. Open can, select Friends, and set the amount, click "Pay", they will receive payment reminders.

In addition, can offers a "trust request" option that you can use as a lender to allow those people you trust to borrow your money. For example, you always trust your grandmother, she can borrow you 20 dollars without asking.

There are also some standard social functions, such as adding your own comments on can, sharing your can payment information on Twitter and Facebook.

2, Chirpify

Chirpify is a social networking site that deals with social networking sites such as Facebook, Twitter and Instagram. After the user binds the bank card with the social network account, the status bar and the comment column of the social network reply to the qualifying text and can complete the transfer transaction.

For example, if a user joins the Chirpify, @chirpify on the social networking site in the form of a message or comment, reply to buy to complete the product purchase or charitable donation of the message. For example, users should add "#chirpify + + @ Payee" to a Twitter tweet to complete an instant payment (both the payee and the payer must be chirpify members). The payee publishes a tweet, and the payer replies "#chirpify + Amount" under the push text to complete the payment. This increases user participation and increases the advertising effect.

3, Dwolla

Like Chirpify, Twitter users can pay for friends, nonprofit organizations, and businesses by posting tweets on Twitter by offering their buddy username, payment amount, Tag #dwolla, and Dwolla account.

In the second half of last year, Dwolla released Dwolla credit, backed by a $ billions of trillion fund from the comenity capital Bank, Dwolla has the ability to distribute to users like a real Visa or MasterCard, However, there is no charge between each 2~3%. On the charge, Dwolla take a one-size-fits-all approach, with a value of $10 worth of trading free of charge and 25 cents for transactions worth more than 10 dollars. According to the customer's credit record, the amount of the virtual credit card fluctuates between 1000 and 12000 dollars.

Dwolla's competitive advantage is that it does not have the high cost of a credit card company; It provides instant transfers, bypassing the long waiting time that automated clearing house (ACH, Automated clearing system) can bring. Thus, Dwolla is creating a self-contained payment framework that reverses credit cards and ACH, two systems that support decades of traditional business, such as bank transfers, to avantgarde payments, such as Square.

(v) Comprehensive application cases including payment and social functions

Foursquare

Foursquare is based on a geographical location, integration of social, electrical and integrated mobile applications, users can query the location near the merchants, view the business comments, and related to Facebook, Twitter and other social platform accounts to share their location and the business comments, And can be associated with bank accounts in Foursquare, offline consumption, directly in the Foursquare App to pay and get points.

This February, Foursquare a 15 million dollar strategic investment from Microsoft, and authorized Microsoft to integrate Foursquare location data into Microsoft's mobile operating system and Bing search engine. After the check-in mode was imitated by big companies such as Facebook and Google, this round of financing has won a respite for Foursquare, or it will use Microsoft's equipment and services to cover more consumers.

According to the data released by WSJ, Foursquare already has more than 60 million restaurants, stores and other city location information, as well as 45 million of APP users, Foursquare expects revenues to reach $15 million to 20 million dollars this year, and 2012 Foursquare's revenue is only about 2 million dollars.