Lakara president Suntaujan talk about payment by: follow the trend

Wangyongjian Suntaujan is about to usher in the "Eight years of resistance" in Lakara. In order to obtain a licence, Suntaujan and Lakara have been in the third party payment industry since 2005 for 6 years. Since May 2011, the central bank began to pay a large number of licensing, more than a year, more than 200 companies were allowed to pay a third party to become a veritable "Red Sea." But Suntaujan is not worried. On the one hand, in his view, payment is a matter of "cuisine" and taste, Lakara as long as firmly do "credit card" work, aiming at the mass market, there will be enough opportunities to grow into the industry leader; On the other hand, as the "Lenovo Department" consumption and modern service plate core enterprise, Lakara not worry about the capital problem, Suntaujan even once reviewed the company's too much attention to cost control, which may have affected the rapid expansion of the business. Do mainstream payment company and Alipay is not a competitive relationship, and the bank card can not eliminate cash, paper money can not eliminate coins is a truth. Because the same person at different times will use different tools, our users will use Alipay Taobao, credit cards will be used Lakara, will also use Lakara to pay the treasure recharge. "China Business Newspaper": August 24, Lakara Network Technology Co., Ltd. officially changed its name to "Lakara Payment Co., Ltd.", and previously, Lakara has used Information Consulting Co., Ltd. title. Why have you changed your name? Suntaujan: From a certain side, Lakara's renaming history is a bit like the history of domestic third party payments. We first called the information Consultancy company in 2005, when the company just entered the industry. In fact, we were looking for what we could do in this industry. However, under the policy environment at that time, many things were not clear. The so-called consultation, that is to say, you are not a contestant, but a helper of the contestants. So the first thing we do is, the development of China's largest electronic billing platform, the hope for China UnionPay's smart Pos to do a matching, for its intelligent POS add Internet content, increase the remote payment content. This role is more like a contestant's service side, the support side, so we call the consulting company. Later, when we renamed Network Technology Co., Ltd., we actually started to invest in self-service terminals in convenience stores nationwide to build our network of convenience services. It can be said that since then we have become a contestant, and this contestant from the perspective of the channel, as the whole industry as a channel to appear. Of course, our channels are doing well. At present, more than 300 cities and 60,000 convenience stores, almost all the brand convenience stores have Lakara, become standard. Like 7-11, Wal-Mart, in the new store will be decorated in the wall to set aside a good Lakara position, inviting us to install. We built China's first nationwide network of convenience services, now has more than 60,000 outlets, should be China's largest single brand service network. The third stage, which was renamed as payment company, was first approved by the People's Bank of China, and after the issuance of licences, many policies have been made clear. In fact, over the past few years, Lakara technology has made considerable progress. Pick up from the beginningTelephone line, to later pick up mobile phones, computers, including access to the set-top box; now, with policy clarity and technological progress, we have entered the era of payment companies, that is, to begin to truly provide payment services to users. "China Business newspaper": Therefore, it can be said that Lakara is not aggressive, take a steady route? Suntaujan: Startups can only do that. Progressively, Lakara now has four lines of business. The first one is the convenience service. The Lakara public terminal has covered 60,000 convenience stores in 300 cities, with a monthly service of 15 million people and trading volume of more than 30 billion yuan, should be China's largest single brand financial services network. The second is the Merchant receipt service, we provide POS for the merchant. The third article is the personal payment service. The Mini Lakara is the phone line, the Super Shield is the computer, the koala is the phone, and one is the set-top box. The fourth article is to provide users with value-added services. We set up a user business division, to choose better for users, more favorable price products, the end of September will be online, film tickets, performance tickets, lotteries, in our mobile clients can be bought. Convenience services, merchant services, personal services, user management, these four lines of business constitute the current Lakara, which is a complete concept of payment company. Of course, we don't cover all the business of paying because we want to focus on where we are best at. We have been focusing on the way the card, whether it is to provide offline payment services, or now provide online payment, are through the card method to achieve. Lakara should be a credit card way experts, like Alipay, Tenpay, fast money many do is online. Therefore, we will focus on the use of credit card to the merchant, the user to provide payment services. "China business newspaper": But in March 2012, the largest online Alipay has said that the development of its own offline payment scheme, applied to the electrical and logistics business, whether this means Lakara, Alipay and UnionPay "three giants" "Rush" of the beginning? Suntaujan: We are not a competitive relationship with Alipay. In fact, the banking industry is the first cooperation between all peers, and then competition relations. The core of banking is networking. A few years ago I told an example that paying is like "cuisine" and that every one can live well, except that some cuisines live better. But if you say that it is impossible to eliminate a "cuisine". And the bank card can not eliminate cash, paper money can not eliminate coins is a truth. Because the same person at different times will use different tools, Lakara users in Taobao will use Alipay, credit cards will be used Lakara, will also use Lakara to pay treasure recharge. It can be said that the banking industry in advance to achieve communism, dens, distribution according to work. The bottom layer is the network general, this is the Banking Survival Foundation. If anyone says my pos can only brush my card, it will die. On this basis everyone is competitive. But after the competition, finally gener back to the dens, according to work, because the vast majority of any transaction involving multiple financial parties. Make the public pay because people's consumption demand is moreform, so payment must be of various forms. And Lakara has been watching the public pay-most of the majority of the pay. For example, we make credit card repayments, because most people have credit cards and have to repay them. We make the payment because everyone needs it. "China business newspaper": Can you talk more about "koala"? As a solution to Lakara mobile phone payment, this part of the market is clearly more imaginative space. Will it become a trend in the future? Suntaujan: La Calacaura mobile phone card reader the potential of the future will be very large. We think every smartphone should have one, every bank card should have one, it is a smartphone companion, it can make the phone become a payment function of the "artifact." It is also a card mate, making the bank card easy to use. But I personally have a point of view, pay must be many schools, as with the cuisine, there must be a variety of cuisines. Because people's consumption demand is many forms, so payment must be a variety of forms. In my opinion, Lakara is doing public pay, including using fingerprints instead of swipe cards, including the current sweep of two-dimensional code, including mobile wallet, in fact, these are small-public type. Either a few people use it in a few days, or only the majority of the change, as a small amount of spending. And Lakara has been watching the public pay-most of the majority of the pay. For example, we make credit card repayments, because most people have credit cards and have to repay them. We make the payment because everyone needs it. Now our business also includes net purchase payment, Lakara support all banks, and there is no limit. Many small-audience payments sound stunning, including iris payments, voice payments, fingerprint payments, NFC (short-range wireless communication technology, Editor's note), and two-dimensional code, which sounds a lot of people are tempted. I also admit that these cool things are fun, must be some people need, but it is not the public, because it is not most of the time needed. Lakara do is a kind of personal payment that most people need most of the time. Can't say good or bad, but this is one of our choices. The goal of our choice is to do mainstream payment companies. "China Business daily": Like foreign retail giants Best Buy, its "future store" has been vigorously providing Apple app payment client, koala as a plug-in solution, although already very small, still carry problems, future will consider integration into the phone standard? Suntaujan: If you want to integrate "koala" (mobile payment tool) into mobile phone, my point of view certainly should not. Just as many people tried to put the VCR and the TV together failed. This is the payment tool, the phone will change at any time, the payment tool does not necessarily change. If you have been carrying, one is a waste of resources, and the second is to put it in the phone, will make the phone changes. I'm going to use an apple and plug it in. Now the Apple 5 comes out, is not here to be built, not like this. For example, Apple 4 built-in Lakara, I use the Apple 5 is not built, I am or not to change. So separation is more reasonable. Development stepped on three points when you know the trend you re accurateThere is no point in measuring the details, just follow the trend. For Lakara, I am well aware of the number of terminals I have, the higher the average number of transaction pens per terminal per month, the stronger my profitability. "China Business newspaper": Lakara the main profit model is the division of fees, by the issuing bank, receipts and clearing institutions in accordance with the 7:2:1 distribution, that is Lakara as a collection of institutions accounted for 20%. So, for Lakara, to what extent can the company achieve break-even? Suntaujan: This is dynamic. In the original plan, 10 million pens on the balance of profit and loss. We have already passed 10 million strokes this year. So the calculation can only be said in the same mode with this play how many pens are breakeven, with that kind of play how many pens is breakeven. It's based on your fixed cost to each transaction, so it doesn't make much sense. My consistent view is that when you know it's big enough, you don't have to be precise about how big it is, just know it's big enough. When you know the trend, it makes no sense to accurately predict the details, just follow the trend. For Lakara, I am well aware of the number of terminals I have, the higher the average number of transaction pens per terminal per month, the stronger my profitability. We only want to expand the terminal, in the expansion of the number of terminals to see whether a single monthly average number of transactions have dropped, as long as there is no decline, and even slightly increased, you close your eyes to expand the terminal can be. We already know that the market, each smartphone, each bank card needs to test, and then to calculate how many billion market size, there is no meaning. "China Business Newspaper": This is based on the current Lakara investment funds are very sufficient basis? Suntaujan: First of all, we have plenty of money. Lenovo Holdings has provided ample financial support as our controlling shareholder. The second is that our business is benign operation. My business model is not a business model that needs to be permanently transfused, it can be self-reliant, but it needs to be brought up when it starts. I can be healthy when I mention it, so I'm not afraid of the big. Our growth has been through word of mouth, and the annual growth rate is doubling. Income is likely to grow twice times this year. At the end of last year, we had only 40,000 convenience stores providing services, and the end of the year turned out to be 60,000. Last year did not do the merchant receipts, this year will make 120,000 merchant. At the end of last year, a hundred thousand of of the Mini card machine, the end of this year will add 3 million Koala phone card reader. This increase in size means volume and income growth. "China Business newspaper": This rapid growth is due to the smart phone two years of bedding, or the previous seven years of accumulation? Suntaujan: This is a typical thick-thin hair, one is in the past seven years accumulated a huge amount of technical systems and business content. Hardware is easy, but the card reader can not use, it depends on your background, backstage is very difficult to do, and need a lot of time accumulation. It took us seven years to accumulate, because the backstage first was a huge deal-processing system, and then the system had to connectThere are banks, all merchants, including the inside to carry out risk control, error handling and a series of things. For example, now the mobile payment outbreak, for us is only the card head (that is, the hardware of the transaction, editor note) changed, backstage or original, as long as a swipe head can enter the mobile payment era. Others have to do backstage to enter. So we are a large accumulation of technology and content. The second is the brand accumulation. Lakara's popularity is very high, the koala only printed Lakara logo you dare to use, the previous years of accumulated trust is very valuable wealth. Third, the accumulation of users. There are 30 million of users who often use swipe cards here. The Forth is the accumulation of organizational structure. The company has 72 branches this year, and the end of last year is 32 branches. 32 home into 72, as long as a two can be, we have a national framework, from a strong branch sent to a group, you can set up a new branch of the team. China Business Daily: On the other hand, is it possible to say that Lakara has seized every market opportunity? Suntaujan: Actually, we stepped three points. Lakara's first development, before 2010, is the credit card explosion, from 2007-2011 years, these years is China's credit card outbreak point. CMB's credit card is over 20 million, CCB's credit card is over 40 million, and credit cards and current credit cards have doubled by at least one or two times times before 2007. This era has spawned a demand--and credit cards. So the convenience of Lakara national convenient service to comply with such a strong market demand, and then we superimposed the payment, repayment, cell phone recharge and other services. 2012 years later, Lakara's big development has stepped on two points, one is small micro-enterprises. The country is now encouraging small micro-enterprises to develop, in fact, an important feature of the market economy is the development of small micro-enterprises. The big development of small micro-enterprises has prompted the number of small micro-enterprises to increase, they need to install POS. The second is the mobile payment outbreak. Although the previous talk for many years, in fact, only the smartphone outbreak will lead to mobile payment outbreak. So we stepped on three points and each point provided a special route for the product. "China Business Daily": License issued more than a year, more than 200 enterprises have been approved, how do you judge the future pattern? Suntaujan: The next 3-5 years is the third party to pay the company's "qualifying game", now everyone in eight, each show divinity, Happy Enclosure, 3-5 years will form a new pattern, there will be several large companies to the mainstream market. Originally speaking 28 principles, 20% of the companies occupy 80% of the market share. I think the third party payment industry should be very consistent with the conventional theory, perhaps 10% of the enterprises will occupy 90% of the market share, of which 2% of the enterprises will occupy more than 50% of the market. Its core will be focused on a small number of large enterprises nationwide, smaller enterprises will exist, but in the market segments. Suntaujan Resume 1987 Beijing University School of Economics and Economic Management Department 1991 ~1998 years in the Ministry of Civil Affairs four Tatsu group work 1995 years jointly founded theThe youth Daily, the computer times, was a great success. 1996 joint venture launched Blue Cursor Public Relations Advisory Body 1997 founded "Life Express" Noble Community Direct Investment magazine 1998 jointly founded Beijing Heng Ji Albert Electronic Products Co., Ltd., planned the most famous products of Heng Albert "business Pass" Marketing 2005 and Lenovo Holdings and Lei Joint founder Lakarajin body Lenovo Guess Wangyongjian 67 ago, this newspaper used "five" to describe "Lenovo" of the five-bit less handsome: Yang, Guo Wei, Zhu Linan, Hony, Chen. At that time, under the leadership of Lenovo Holding, Liu's "Inns" thought, Lenovo Group, digital China, Lenovo Investment (now renamed as June Lian Capital), Hong Yi Investment (emphasis on state-owned enterprise restructuring investment opportunities), financial science and technology to form the Lenovo Department of the "five carriages", PC, IT services, investment in real estate, Five less handsome each lead the first. Now, Guo Wei through MBO (management buyout), as a major shareholder of digital China, Yang also became a big shareholder of Lenovo Group, and Zhu Linan was identified as the successor of Lenovo Holdings in the outstanding performance of June Lian Capital (formerly Lenovo Investment), and specifically planned the listing of Lenovo Holdings in the 2014-2016-year period. Hony, the leader of Hong Yi Investment, regardless of the previous investment, the major gain in the Zoomlion, or the new shares, intended for the future of suning appliances, the results also let "big parents" Liu is very satisfied. Zhu Linan and Hony were both elected to the board of directors of Lenovo's 6-member group. In contrast, the leader of the real estate sector-the Chen of science and intellectual land slightly quiet. The latest news in the media is that Chen said in mid-June that after more than 10 years of development, the company now has 15 regional companies in the country with a total assets of over 20 billion yuan. The latest structure of Lenovo Holdings shows that for six or seven of years, with the evolution of the career trajectory, Lenovo System has completed a new restructuring: Guo for "Solo", and its own digital stake in the Shenzhou is about 3 times times the Lenovo Holdings, Lenovo Group, although still the core business of Lenovo holding it plate, but because of its thin margins, In the future there is a lack of imagination in Lenovo's listing process. Under such circumstances, Lenovo must address the scale and equivalence of the listing on the one hand and nurture the future profit growth poles on the other. Considering the cyclical nature of the investment business and not easy for investors bullish, Lenovo Holdings must restructure its already changed industry sector. The modern agricultural sector, which Mr Liu has high hopes for, although the growth potential is good, but the required return cycle is long, even by the Lenovo Group under the illustrious "exploits", well-known industrial chain management Chen responsibilities, also need time to grow; in this way, real estate business and new chemical materials, consumption and modern services, two great plates will have to bear the burden of providing Lenovo with a stable scale and profit. It is particularly worth mentioning that the consumer and modern service sectors that Lenovo has built up are divided into three sectors of consumer goods, consumer services and financial services. Among them, the wine industry mainly provides the profit as the consumer goods, the Lakara, the joint insurance broker and so on financial service mainly provides the scale.Lakara the current good development situation makes its future full of all kinds of bigger possibilities. For many successful Suntaujan, Lakarajin body "Lenovo", and perhaps access to funds, such as the significance of outside support: 1991, Sun Zi University graduation, because there is no school allocation, missed the first time to join Lenovo's opportunity. You see, the world is so small.