Pay market to reproduce the flat thunder

Pay the market to reproduce the flat thunder.

The eight third-party payers who have been waiting for the central bank to reopen new merchant businesses are waiting 5 months for a new ticket.

On the afternoon of September 10, the central bank formally targeted the bank card pre-authorization risk incident issued at the beginning of the year for the remittance of the world, Fuyou, Yeepay, accompanied by four third-party payment agencies to pay the punishment opinions. According to the final penalty result, remit the world within one year will be orderly exit 15 provinces and cities of the existing receipts business, Fuyou and Yi Bao will evacuate 7 provinces of receipt business, accompanying will evacuate 5 provinces 2 city receipts business.

April 1, eight third-party payment agencies were called off the receipt business extension (also known as "Stop the New"), the central bank again moved the knife third party payment, the industry reorganization intention is obvious. A person close to the central bank told the Economic Observer that the central bank was releasing information to pay the market for regulatory tightening, "taking this opportunity to establish a few models that the paying agencies know are likely to be costly to violate." ”

And from the "Stop new" and not "stop the new" several third-party payment agencies, said that the chaotic heavy effect may only be a moment of power, pay the root of the market turmoil in the rate system, "721" profit-sharing ratio, including UnionPay's market position and other institutional factors.

Heavy

The economic Observer reported that according to the notice of the general office of the People's Bank of China on the special inspection of bank card receipts (2014]48), from April 2014 to May, Each branch of the central bank has conducted a special inspection and comprehensive evaluation of the bank card receipts business in the four companies which are involved in the pre-authorization risk events of the bank card in the end of 2013 and the largest transaction amount. There are still a number of problems to be examined, thus unifying the penalties.

According to the contents of the document, remit the world will be in the notification issued within one year orderly stop in Guizhou, Hunan, Shaanxi, Henan, Zhejiang (including Ningbo), Chongqing, Yunnan, Hubei, Fujian, Ningxia, Jilin, Heilongjiang, Jiangsu, Hainan, Qinghai 15 provinces and cities bank card receipts business. Correspondingly, the Yeepay payment should be ordered to stop in Henan, Jiangxi, Jilin, Shanghai, Shenzhen, Hunan, Zhejiang (excluding Ningbo) seven provinces and cities bank card receipts business, Fuyou will orderly exit Henan, Zhejiang (excluding Ningbo), Fujian, Tianjin, Jiangxi, Jilin, Hunan Province, seven provinces and cities bank card receipts business, Accompanying payment will be orderly exit Jilin, Liaoning (including Dalian), Zhejiang (including Ningbo), Fujian, Heilongjiang bank card receipts business.

such as Hubei, Fujian and other areas are at the end of 2013 credit card pre-authorization risk incident of the hardest-hit, and Zhejiang, Shanghai, Shenzhen and other places are ranked by the top of GDP provinces and cities, but also the consumption demand is more prosperous, receipts more business areas, the withdrawal of these regional business, to any one of the Third-party payment enterprises are broken arm pain.

In fact, as early as March this year, the central bank has issued the "PBC on bank card pre-authorization Risk Incident Bulletin" (hereinafter referred to as "circular"), from April 1 onwards, including the world, Yeepay payment, accompanying, Fuyou, Cayou, Sea branch financing, Sheng, Czech Ching, including 8 institutions nationwide suspension of access to new merchants, in addition, China UnionPay's UnionPay business, Guangdong Ka Lian Two will be required self-examination.

Since then, the central bank inspection found that the problem is no different from the previous, still concentrated in the "real name of the merchant, outsourcing service organization management, card handling fees standard implementation, Terminal Equipment management" several major issues.

In response to the central bank's heavy-handed punishment, some third party payers may appear to be "coping with the Pressure": on the one hand, the pressure to pay for market turmoil persists, while the pre-authorization event at the end of last year has not been explicitly penalized. In fact, in the central bank's regulatory logic, the April "Stop the new" is not a means of punishment, the close to the central bank said, "let the payment agencies to stop the industry, is that they have problems need to check the rectification, and now after several months, still have problems, so the penalty to stop operating ”

"The penalties are much heavier than expected and a step away from revoking the licences." "Close to the central Bank's settlement division said the decision had actually been made in late August and that it was so rare that the central bank" Shajijinghou "signalled a return to regulatory functions.

"At least, whether it's a central bank as a regulatory authority, a real market-management function, or a market participant like a bank or a third party payment, it has become aware that the only way to do this is to rely on UnionPay to impose fines and so on. The payment market has been in turmoil for a long time, and the central bank is also trying to get rid of the market by releasing signals. This will probably be the end of the future for non-compliant businesses. ”

The paying agency asks the central bank

In response to this penalty, third-party payment agencies have a number of questions, mainly reflected in two aspects: four Third-party payment agencies to pay the whole industry chain risk events and the reasons for the chaos of the industry, whether the central bank insight.

A third party payment industry insiders believe that the pre-licensing risk is an industry-wide risk event, in addition to the various norms of the receipt of a single body, UnionPay's 115% authorized overrun rules, bank card wind control dereliction of duty are the main cause of the incident, the early April Bank and UnionPay perfect shirking, by the third party to pay the "full" bill is unfair, But now it turns out that the industry's fault is concentrated in several paying agencies. "The specific principles and basis of the punishment, the central bank is not publicized." Even if the chaotic heavy should embody the principle of fairness, it is too subjective and unconvincing to impose heavy penalties on certain irregularities, rather than imposing heavy penalties on certain irregularities in certain institutions. ”

In response, the economic observer, from a person close to the central bank, has responded that the central bank's disposal authority is limited to third-party payments, and that banks ' compliance management requires CBRC supervision.

In fact, the industry has been in turmoil for a long while. In July this year, the data from the economic observer showed that nearly 460,000 of the first half of the illegal business of the Central African Gold agency accounted for nearly 80%, the binding amount of 260 million. In addition, cutting machine, set code, "Transfer", transform "32 domain" and other kinds of illegal innovation means staged.

"In the same competitive environment, the market share of banks is 70%, and the violation is only 20%." Do you think it's reasonable? "The real reason is that the banks themselves are the shareholders of UnionPay, so it is natural for UnionPay to move the knife," says a third-party payment agency. ”

Since April, UnionPay has increased the penalties for market irregularities, according to market participants, some tickets high to 2 million or 3 million.

An involved third party payment company people said that "stop the new" in the past few months, in the face of central bank inspection is not unknown convergence, the problem is the agent management system exists natural flaws. "Agents and businesses are basically without integrity, prices are overwhelming determinants, there is no so-called loyalty." Third-party payment agencies will have very limited binding force on most agents if they do not have a direct sales team of scale. In fact, the so-called illegal innovation, is not a third-party payment of the design works, many times is also the subjective agents and merchants, agents themselves for the violation of a strong interest drive. "A long time ago it was already a very thin business," the chairman of the industry's top-ranked third-party payment agency said, "with the 2011 licence issued, a large number of industry participants, and then more licences, the relevant regulatory system is not perfect in place, price war Non-stop, MCC code constantly, Vicious competition in the industry has emerged. ”

On the other hand, on average, the single POS card charge is about 1% of the consumption amount, in the Development and Reform Commission to reduce the card processing fees, some people's livelihood card processing fees low to 0.38%, according to the 2013 7 issued the implementation of the "bank card receipts Business management measures", offline receipt of a single bank, receipts institutions (third party payment and clearing houses are allocated at 7:2:1. "At such a low rate, only by playing the price war to continuously obtain more customers have room to live." ”

Accordingly, to the third party payment, the whole process, the receipt of a single body to expand the use of manpower and resources of the merchant, maintained, including direct sales, outsourcing services; they have a much lower cost of income than the banks that provide the receipt interface and the UnionPay that provides the clearing channel.

These people added that the distribution of 721 per cent of the offline receipts was only present at home. This proportion is developed in the early stage of the market, almost 10 years ago, in order to establish a market environment to encourage the bank card issuers, to the highest splitting ratio, but today, the market environment has changed the light of day, the market mechanism has not moved.

UnionPay's market role, rate reform, 721 splitting ratio and regulatory basis are the four major pain points that the person oversees in the industry that spits out the economic observer. "Third-party payment agencies do not have the ability to choose a channel and are only passive in the face of regulation or facing UnionPay." The question is whether the central bank is aware of these problems and, if so, what. ”

A fork in the payment industry

What kind of posture to face the tightening of regulation is the next issue that every Third-party payment agency needs to face urgently. "The margins are thinning, competition is intensifying, and regulation is strict," he said. The market will return rationally and no longer compete for a licence. Some of the small third-party payments will be withdrawn from the market, some will be left behind, either on the basis of the payment of the transformation of the larger, or be mergers and acquisitions, the trend of industry diversion has been very obvious. It is still unclear what the future attitude of regulatory intervention will be. "said a large third-party pay executive.

In his eyes, on the basis of payment, the provision of financial, marketing and other overlapping services is the world's right path. However, he also admits that the road to transformation is not for every institution to go. "There is no such thing as a scale effect," said millions. "The transformation of the superposition of financial, marketing and other services, the need for deep industry accumulation, user base, large data analysis capabilities, system construction and professional team to complete, small payment agencies do not have the conditions." ”

The person added that after the ebb tide, a third party payment company with the conditions to achieve a gorgeous turn from the payment industry will focus on the top five of the industry, no more than the top ten.

After the incident, a letter to the internal staff of the open letter, remittance World President Zhou Ye said the incident to the company "has influence, but the impact is limited." "The reason is that this year, the world has been in the organization structure and business growth to accelerate the transformation of the layout, in addition to offline billing, payment areas such as network payment, mobile payment, Cross-border payments and payment areas?" Peer-to-peer hosting account, financial management platform, credit business and so on have become a new growth point.

More than 200 Peer-to-peer hosting accounts, nearly 30 billion of the scale of cloud wealth management platform, Zhou Ye said "in the new pattern of remittance, the stop area of the financial contribution of the business to the company has not more than 10%." More importantly, these effects occur only in the third and fourth quarters of the year, and we are expected to drop the burden completely in the first quarter of next year. ”

However, the profit thinning and can not achieve gorgeous turn of the enterprise may not be so unrestrained "put down the burden", they can choose a way out, a merger.

Compliance business agents struggling to survive and not a few, UnionPay business executives also frankly, "bad currency expulsion of good currency phenomenon is obvious, poor living environment." With a certain customer base but do not have the ability to transform the enterprise may be mergers and acquisitions, is a less solemn way out.

And in the short run, for some small-volume payment agencies is bones, even the larger plates will inevitably hit, in addition, the impact on the entire market will be far more than April, the amount of users to deal with, will not lead to crazy "cutting", industry follow-up development of concern.

One of the agency's agents explicitly told the economic observer that it would not withdraw from the business of receiving a single agent. "I've changed a company before, at most." "It is not easy to change a company agent," as long as the local industry and commerce, merchants or those merchants. ”