Looking at the future of electronic payment industry through filing

Wen/zhouning

Just last July 31 was the filing deadline for the domestic electronic payment of non-financial institutions, as stipulated by the Central Bank Bulletin. The arrival of this deadline, the industry is pregnant with worries, opinions. Optimists believe that the record means that the standard and licensing, electronic payment enterprises are about to get rid of the embarrassing situation of marginal management, is recognized by the community. Pessimists there are two of worries, one is the issue of licensing may be long road, the second is the qualification restrictions will discourage the vitality of the industry to the relevant E-commerce formation.

A deep understanding of China's electronic payment model.

1. What is electronic payment?

The "Electronic Payment guideline (number one)" issued by the People's Bank of China stipulates that: Electronic payment refers to units, individuals hereinafter referred to as customers directly or authorized others through electronic terminals to issue payment instructions to achieve currency payments and transfer of funds behavior. The type of electronic payment is initiated by electronic payment instruction into online payment, telephone payment, mobile payment, point-of-sale terminal transaction, ATM transaction and other electronic payment.

From the payment process, there are 2 main modes of electronic payment internationally:

· PayPal

PayPal payment methods are as follows:

·· Alipay

The basic payment process for buying and selling through Alipay is as follows:

We can see: ebay's PayPal model based on foreign developed countries strong credit mechanism, and Alipay pay attention to the security of trading.

At home, the mainstream of electronic payments is Alipay mode, often referred to as third-party payments.

2, the Chinese electronic payment industry to the third party to pay as the main body.

The so-called third party payment, is a number of products in the country and foreign major banks contracted, and have a certain strength and credibility of the protection of third-party independent agencies to provide a trading support platform. In the transaction through the third party payment platform, the buyer buys the goods and uses the accounts provided by the third party platform to pay for the payment, and the third party notifies the sellers of the payment to arrive and carry out the goods, after the buyer examines the items, he can notify the seller and the third party transfers the money to the

Third party payment is the perfect payment solution for domestic virtual mode, which is based on the weakness of credit system and social distrust. Third party payment can effectively protect the quality of goods, transaction integrity, exchange requirements and so on, thus driving the rapid development of E-commerce. Taobao's rapid rise in Alipay's design and support are inseparable.

Second, the Internet business development to promote the rapid development of electronic payment.

Recently, CNNIC issued the 24th Internet report, from the report we see the development of E-commerce applications:

CNNIC 24 Internet Report 2008.12-2009.6 Business Transaction class application user comparison

End of 2008

2009 years

Six months change

Usage rate

The size of Internet users

(Million people)

Usage rate

The size of Internet users

(Million people)

Growth rate

(Million people)

Growth

Online shopping

24.8%

7,400

26%

8,788

1,388

18.8%

Travel reservation

5.6%

1,700

4.1%

1,386

-314

-18.5%

Online payment

17.6%

5,200

22.4%

7,571

2,371

45.6%

Network stock

11.4%

3,400

10.4%

3,515

115

3.4%

1. E-commerce data analysis of the 24th Internet report.

CNNIC's latest 24th Internet report shows that the use rate of E-commerce in Chinese Internet users is still in a state of high speed, but there is still a big gap with developed countries such as the United States, Japan and Korea.

From the CNNIC data can be seen in June 2009, the Internet users in China's E-commerce use rate reached 26%, a half year growth rate of 18.8%. There is still a huge space for development from the average 70% in developed countries.

2, the 24th Internet report of electronic payment related data analysis.

As can be seen from the table, online payment of the six months of development is extremely rapid. The number of users grew by 23.71 million and the growth rate was as high as 45.6%.

From such data we can judge that the electronic payment industry is in a fast-growing period.

3. How big is the space of electronic commerce?

A, the Chinese network user's electronic commerce utilization rate is very low

According to data from the 23 Internet development reports, up to 71% per cent of users in the developed world have used E-commerce, while our current value is only 26%.

B, the total number of Internet users have been climbing

According to CNNIC data, if China's internet penetration rate reached the average of 70% in the middle-developed countries, according to 1.3 billion, the total number of Internet users is expected to reach 910 million people.

C, according to the above 2 data analysis, E-commerce cake how big?

According to the 2008 Population data analysis, E-commerce has 9-10 times the growth of space. IDC White Paper data shows: E-commerce 2008 reverse Market expansion of 30%, proved this inference. The associated electronic payment market is also growing rapidly, according to Iris, which posted a 180% per cent increase in online payment growth of 274.3 billion in 08.

Third, the state of the national economy calls for the development of electronic payment industry.

Since 2008 when the world entered the financial crisis, the State attaches great importance to stimulating domestic demand and industry restructuring. E-commerce is a very effective industrial tool to stimulate domestic demand. As one of the important components of electronic commerce, electronic payment is an integral part of electronic commerce. Therefore, we can analyze the state's attitude towards payment industry from the following aspects:

1, the top ten industry revitalization plans, electronic information revitalization planning and logistics revitalization planning are highly correlated with the electronic payment industry. From this can be judged, from the national policy perspective, electronic payment industry record and licensing is to standardize the industry measures. The state is encouraged by the industry and will not introduce draconian measures to suppress the industry.

2. E-commerce is an important tool for expanding external demand and domestic demand. As one of the most important Internet products, e-commerce is a monument to the information revolution, which has revolutionized the cost of commodity circulation and increased the activity of commodity circulation. It can be said that E-commerce is the internet's Silk Road. From the current situation of development, e-commerce by the Government and enterprises of general concern. We remember: 08--09, in the call of Ma Yun, the financial crisis of the hardest-hit areas of the Pearl River Delta, Yangtze River Delta and Bohai Bay, the local governments have set up e-commerce zones, the introduction of preferential policies to encourage enterprise marketing self-help or business development. Recently, in Jingdong Mall, where the success of the case of customer-prudential products, encouraged by small and medium-sized enterprises have flocked to the field of E-commerce.

3, electronic payment affects the development of entrepreneurial economy. Many areas of entrepreneurial economy have been the Internet as the main channel of business, the main areas of investment is community and E-commerce. The internet with its low price, fast spread, a wide range of unique charm to attract entrepreneurial enterprises. and the role of electronic payment on the backbone of e-commerce in such a field of special value.

4, Electronic payment is the innovative means of banking. On the two sessions this year, China Merchants Bank governor Ma called for faster issuance of "third-party payment" licences to raise the industry threshold. We can use it as a commercial bank to pay attention to the electronic payment business proof. In the cooperation between the Bank and the electronic Payment enterprise, the payment enterprise is the pioneer of the bank business and the bank card promotion. However, due to the widespread use of third-party payment model, electronic payment enterprises have the property of commercial banks at the same time. This leads to the contradiction and unification between the bank and the electronic Payment enterprise. One of the solutions is that commercial banks themselves are involved in electronic payments, taking electronic payments as a means of business promotion, while expanding their business scope and business areas.

5, the electronic payment by the value chain link influence the national economy and the national life quality. Electronic payments have been deeply penetrated into such areas as ticketing (air tickets, train tickets), payment (water, electricity, gas, telephone, cable TV, etc.). Free people from the boredom of wasting time and social resources from going to the bank or queuing up for payment. Save time can be used to improve the quality of life, participate in leisure activities. The social costs of settlement are also staggering numbers!

Iv. national policies encourage the development of the electronic payment industry.

In the case of electronic payment filing, the most delicate thing is the government's performance. From some details we can estimate and predict some of the government's plans:

1, the regulation of electronic payments as the banking sector, to the People's Bank management. We know that the state's regulatory body for banking is the CBRC and the People's Bank. The CBRC oversees all financial operations while the bank oversees commercial banks. This bulletin is published by the People's Bank, we can feel the government to electronic payment enterprises as commercial banks. As a matter of fact, Alipay's accumulation of funds has far exceeded many local banks, and it has long been inappropriate to regard it as an electronics industry company or a banking electronic service agency.

2, the filing system will be the electronic payment industry supervision mode. Generally, the way of supervision is approval system and filing system. Examination and approval procedures cumbersome requirements strict efficiency is low, but more rigorous and prudent. And the filing system has higher efficiency and lower requirements, suitable for high-speed development of the industry. This announcement requires the way is the record, visible government hope that the rapid development of the industry. The filing was just for the sake of regulation, not deliberately setting barriers and thresholds.

3, the use of third-party trusteeship can better guarantee the security of funds. From the past development of securities industry, the third party trusteeship of funds is more advantageous to the benign development of non-bank intermediary organizations. Third party trusteeship can effectively avoid misappropriation or illegal possession of intermediary agencies, misappropriation of escrow funds, to avoid financial crimes. The custodian of a third party is necessarily a large commercial bank, which helps to balance the interests in the third party payment business and protect the bank's profits.

4. High-tech industry brings greater difficulties to supervision. The core technology of third party payment is security and interface technology. Among them, the security technology is very important, international, domestic to this have extremely strict attestation standard. For example, we can see in IPS website DSS security certification, is a 6 major areas of 12 items of 200 review requirements of the specification, certification costs a long period of time. This to the government departments to put forward higher requirements, judge, check the security of the system work needs of industry experts to serve.

5, UnionPay gradually evolved into state-owned commercial banks. UnionPay was once a state-owned bank intermediary. We see that UnionPay is gradually evolving into a professional financial institution dealing with the intermediary business of settlement business and electronic payment, or that UnionPay is gradually becoming an electronic commercial bank. The Silver Networking Station so introduces itself: "China UnionPay is a joint-stock financial service institution, which is approved by the PBC and sponsored by more than 80 domestic financial institutions, adopts advanced information technology and modern company management mechanism, realizes the network universal of bank card nationwide, realizes" one card in hand, travels through the divine land ", even" The goal of walking around the world. "" The Search "UnionPay" keyword, impressively see UnionPay's UnionPay Electronic Payment service company website (chinapay.com).

6, the official issuance of licences will take time. It has been 4 years since the CBRC and the bank issued the Electronic Payment guidelines in 2005. The filing has cheered many people: electronic payment licences are finally being issued! However, I associate myself with the 3G licence, which is judged by the complexity and sensitivity of the business: the departments concerned will certainly be very cautious and will never blindly advance. This is the property of the regulator, and it must be some time before the payment licence is issued.

E-payment industry itself in the high-speed growth period.

The most important effect of payment licence is electronic payment enterprise. At present, China's domestic electronic payment enterprises are mainly Alipay (Alibaba), PayPal (ebay products), Tenpay (Tencent, Tencent Pat), Fast money (Quick money---completely independent third-party payment platform), hundred Pay (Baidu Consumer-to-consumer), IPs, remit to pay the world. This year, Alibaba's Alipay has shouted a slogan: "We can always hand over the company to the government." Thus can see the pressure of the enterprise. Analysis of the current situation, the industry has the following characteristics:

1, industry giants have been formed. Alipay has become the industry giant, according to the published data, Alipay current daily trading pen number of 4 million, daily turnover of more than 700 million yuan. With an average daily turnover of $700 million, the annual turnover is over 250 billion yuan. July 6, Alibaba's Alipay company announced that its number of users officially exceeded the 200 million mark. This shows Alipay has surpassed PayPal as the world's largest electronic payment platform. Eric Consulting 07 Q3 's data shows us how powerful Alipay is in this field:

2, the industry monopoly temporarily cannot appear. Tenpay's powerful network resources, the strong government support behind UnionPay payments and other electronic payment companies in different areas of professionalism are hindering Alipay unified. What the industry is facing is not how to slice the cake, but who runs it faster. Because the industry is still facing more than 200% of the development of space, clinging to the city means lagging behind and the future of death.

3, the scope of cooperation is an important indicator of electronic payment enterprises. At present, there are more than 140 commercial banks in China, for the user experience, whose cards can be used is the first demand; As an electronic payment enterprise, the number of cooperative banks also marks the market share. From the home pay site, Alipay to 60 of the number of cooperative banks alone show.

4. Vertical and deep excavation will improve the profitability of electronic payment enterprises. In the Internet field, vertical means professional, depth means profit margin. Vertical to depth also brings user viscosity. For small and medium sized payment enterprises, which cannot compete with Alipay in general, vertical and deep excavation means opportunity.

5, business innovation is the life of electronic payment enterprises. Alipay's success lies in the fact that Alipay's model creatively solves the problem of trust in electronic transactions in China. and electronic payment is still in the early stage of rapid development, new models, new technologies continue to emerge, innovation is the driving force of enterprises. Have the honor to listen to Alipay business speech, learned that Alipay's development strategy is to expand the electronic account and credit business, and gradually become a financial enterprise.

In short, comprehensive analysis of the 7.31 before the end of the attitude and strategy, we can get the conclusion:

• The state has an encouraging attitude towards the electronic payment industry.

• The main management mode is the filing system.

• The electronic payment enterprise has the trend of banking.

• The electronic payment industry is in a fast-growing period.

Reference Data Index

1, Baidu Encyclopedia-third-party Payment:

Link: http://baike.baidu.com/view/200197.htm

2. The People's Bank of China Electronic Payment guidelines (number one)

3, CNNIC "24th Internet Report"