Perspective of four phenomena in the third party electronic payment market

Someone once said, "If you hate him, let him pay, if you love him, let him pay". Of course, this is a joke, but, from this joke all reflect the payment industry some kind of voice! I think the colleague should be punctuate to the third party electronic payment market, not to the electronic payment industry. Because the extension of the electronic payment industry includes a lot of payment media and terminals. Therefore, we share and encourage the third party to pay the market today.

By the way, China's third-party electronic payment market has gone through 7 or so years, from three in 2000 to a new company in 2003, from twos and threes to a new company to a 2004 price war, from a price war to a gold rush. , from the gold rush to the loss of trading and the development of the members of the crazy investment, and to pay the company's differentiation and diversification of the Bureau; then to everyone to the license plate silently waiting, then to have anxious to Peaches VC "Autumn Harvest." This all the way down, can be said to be pregnant and annoying! At the end of 2007, it's time to take stock of the industries we love.

The first phenomenon: the ability to improve profitability

From the second half of last year, the payment industry began to become more rational, the payment companies are more focused on product innovation, the accumulation of effective transactions, effective membership recruitment and quality of service continue to strengthen. At the same time, the payment companies in the product innovation, or in the accumulation of members, or in the strategic cooperation with the Bank, or in the exploitation and utilization of resources are each have a trick. That is to say, the payment market is from the model single industry fine differentiation transition; Although, third party company's upstream market bank's game rule still is "consistent", but, each payment in face already anxious VC, also resorted to the eight ability.

Needless to argue, the vast majority of payment companies have been very difficult to receive the opening fee and the annual service charge, the payment industry's market price war smoke continues, the original payment is to earn service fees, opening fees and Trading Commission business model, but in a lot of the rules of the game and industry application market driven, Paying firms are experimenting with different ways of earning money, so how will the company continue to go? What are the forms of expression?

The first is to make use of the big advantages of the store and the bank to achieve almost seamless joint strategic cooperation, to get gross profits from the cost of competitive bank rates, but those with weak resources are not necessarily able to get very low bank costs, and most pay companies are still struggling to earn transaction fees in most industries, so Most of the payment companies have worked industry applications.

In particular, ticket industry and lottery industry, direct sales industry will be formed to deepen the industry value chain to derive new profit growth points, such as: Air ticket industry software and electronic ticket distribution platform, lottery joint purchase and lottery application software.

Another possibility is that credit card payments have been made, and there have been some payments companies that have been successful in the richness of credit cards and merchant applications. The most visible one is that a derivative payment method that has a relationship with the telecom operators shows the Super profitability! If you follow this profitability, I think the most likely to be successful early in the payment company, in addition to the company has four sets of wagons, it is likely that the company is the most likely to succeed ahead of time. It remains to be seen whether business-to-business payments have a strong profitability.

There is also a profit direction is to pay the company shares in the industry companies, or with the industry company strategic cooperation to do industry projects, such as: Pay the company to buy the electronic ticket platform, pay the company to sell lottery tickets.

The second phenomenon: increasing staff turnover and highlighting management challenges

By reason, it's normal for people in the industry to flow or to jump. A human resource balance phenomenon, however, the electronic payment of some companies have a large number of brain drain and exchange transfusion, for a start-up company should not be a good phenomenon, because the cost of training a person is invisible, especially the new industry. It doesn't seem to matter that a man is gone, but he represents the loss of a merchant and a resource. Therefore, the accurate positioning of the business model and the direction of the business model will be a test for CEOs, because the business model is always changing that is also easy to cause loss of personnel, in addition to human positioning errors and corporate politics caused by the loss of human resources.

We often listen to VC said: "The team is very important, the team's executive power is very important." The author of the humble view that the CEO of the start-up company is more important! Because the team is the CEO to find, flock together, like birds of a feather, to a certain extent CEO culture is the corporate culture, the CEO's values and management capabilities and executive power directly affect the entire team's core competitiveness; another word that is often heard is: " VC more recognized that the first-class team and second-rate business model than the first-class business model second-rate team more likely to succeed. But these first-class and second-rate definitions and meanings are also in the beholder, benevolent people, however, to take the payment company, perhaps, a company if in the management can eliminate the human-oriented, not to use, do not work, not reward, do not speak good faith, bridges, gang, CEO autocratic and Democratic polarization, The test of the CEO is also an important subject when money is not spent on the blade, strategy is not clear, and the strategy is discussed every day.

I hope that the workers in the payment industry will be more thoughtful and less blind. It's not good for our careers.

The third phenomenon: the depth and breadth of interactive marketing and the enhancement of interactivity

At present, the payment company's membership development strategy is very right! It turns out that a dead member and an effective member are already one of the key links to paying for the company's profitability and success. Of course, the development of membership is a process of early investment, the General VC and the company's management to the development of members of the cautious and wait-and-see attitude, but the fact that the early side to do the payment business, It is also a very good strategy to invest heavily in the development of members ' programs.

Because, in the payment company derives the payment method and the new profit point and so on link, a payment company's member level directly relates to the profit ability strength, through the on-line and the net union or the Bank electronic Banking department's webpage method to produce the Maori and more effective member. For example, the payment company can work with the bank's electronic banking department to bundle the lottery, ticket, recharge cards and other business into the bank's channels, directly develop the bank's members to generate profits.

However, the bank's resources are unique and strong, once a payment company with the relevant electronic Banking Department to establish strategic cooperation, then the payment company will be in a certain period of time to face the situation of hope and sigh. Or the threshold to enter the bank will be greatly increased.

The fourth kind of phenomenon: suggest VC more patience don't rush to Peaches

May be the internet caused by the "curse", perhaps Google and China's concept stocks rapid success so that these VC investors return on investment expectations of the shorter period of time, whenever talk about financing asked: "You now GP how much?" Anxious to invest today, tomorrow will want to go public or buy, although the electronic payment industry is optimistic about the industry, but, they often use the success of the internet and such as PayPal and other special advantages of successful enterprises to compare, I think these vc are not very understanding of electronic payment industry, Especially in China, not to take the old foreign model sets, China's electronic payment market also need all parties to calm down the cultivation of the real. such as enthusiasm will only backfire.

Because the electronic payment industry is actually doing non-bank financial value-added services, such services need to give customers a cognitive process, especially the education and popularization of electronic payment in China still need to do a lot of work, so, this industry needs VC colleagues and pay practitioners to work together to walk through the dark before the dawn.

                                         &NBSP