Suspension of licences and mergers and acquisitions will become a new normal, to break the monopoly of the way in mobile payment

Discontinued licences and mergers and acquisitions will become the new normal, to break Alipay 98% market Monopoly, the way out in mobile payment

"Plainly, we are now doing a third party payment license to bid, is to look at the policy meal." ”


March 27, in the face of the Yangtze River newspaper reporter's inquiry, Shanning (a pseudonym) so said. With no specific policy yet in place, he does not even know when his job can be done.


at present, Shanning work in Shenzhen Internet Financial Services Co., Ltd., mainly to do Third-party payment licensing consulting and information construction. But the recent rumours of a "central bank or the withholding of third-party licences" have made him endlessly worried about his career.


"is now on the North canton wide deep has suspended bid. "Shanning in the telephone to the Yangtze River newspaper reporter Sigh," The policy is good, everybody wants to do (third party pays), we have the food to eat, but if the policy appears the restriction, or the threshold enhances, that our work also not to be able to do. ”


since 2011, the central bank has begun issuing third-party payment licences. So far, 269 third-party payment agencies have been active in domestic financial markets. But because of the number of institutions, and the vast majority of business overlap, in order to scramble for the market had to play a price war.


on the one hand, mainly by collecting fees to maintain operations, on the one hand, and reduce the rate to occupy the market. "The market has become a red sea." Ku Xiantao, a researcher at the Center for Financial Research at the Yangtze River, said in an interview with the Changjiang Commercial news reporter.


fish, poor supervision, vicious competition ... The market is in such a state that it may be time for regulators to step in and the third party payment industry is bound to raise a "purge storm".


Competition white-hot market has become "Red Sea"


in January this year, Shanghai Chang was exposed to misappropriation of gold, capital chain rupture, or will become the first domestic failure of the third party payment enterprises. In December last year, the Bank of Shenzhen Credit Information Technology Co., Ltd. due to illegal development of commercial tenants, was temporarily retracted payment business license. "This is the most stringent disposal measure in history. Ku Xiantao said the regulatory layer was under pressure to pay a series of turmoil in the last two years.


Third party payment license is divided into three kinds: network payment (such as net purchase), prepaid card issue and accept (such as business card), bank card receipt (such as POS machine card). According to the Silver Net Financial analyst Mao Yabin, the third party pays the profit model mainly includes the receipt processing fee, the reserve pays the interest income, the prepaid card interest income, the platform builds the profit. In the bank card receipts business, the card issuing bank, the receipt institution and the cards organization are divided into the handling fee according to the 7:2:1, the network pays the Commission level and the bank card receipts business level is equal. Prepaid card issuance and processing will produce a large amount of precipitation funds, these precipitation funds generated by the agreement deposit interest is also a third party to pay a major part of the income.


"At present, receipts and prepaid cards are more than two of the problems." Ku Xiantao to the Yangtze River business newspaper reporter discloses, receipts are mainly relying on transaction fees, the basic lack of reserve payment of the remaining, a day or two to the money to the merchant account, go to the basic "scale efficiency", that is, the number of merchants, the higher the transaction scale, the more fees will be charged.


"But in the past two years, the receipt market has become a Red Sea (competition white-hot market, with the" Blue Sea "concept). "Ku Xiantao Introduction, the mainstream of the receipt of institutions, such as remit to pay the world, fast money, communications and UnionPay business, such as the first ECHELON has occupied the main merchant group, and then Fuyou and other second echelon also poured into the first echelon, resulting in the third echelon of small receipts agencies of the number of businesses are not high, profit is not strong, follow-up services will not be too perfect, So the polarization is more serious. So the bigger the profit, the smaller the market will tighten, the more serious challenges.

Why does
say that the receipt market has become a red sea? Ku Xiantao said, because the number of institutions, and most of the business is overlapping, some agencies in order to scramble for the market, a big price war, "You are lower than me, I am lower than you, lower than the normal market rates are lower." On the other hand, card issuing banks need to charge fees, and perhaps the transfer of UnionPay fees, so some of the second and third echelon of the payment agencies, they not only do not make money, but also to ensure that their market is not eroded, often posted money, so overall is in the loss. ”


and prepaid card enterprises are faced with the problem is a single normal profit model, to make more money, it is easy to produce illegal operation. Ku Xiantao introduced, prepaid card enterprises have to pay deposit, that is, when the consumption to transfer, do not spend money still remain in the payment agencies. But because the amount of prepaid card is not high, resulting in the deposit is not very high, so the enterprise only rely on the interest to pay the profit of the words will not make money, then the enterprise will be prepared to pay money to do money, do not bank control. "If the enterprise takes the preparation to make the investment, then the risk is not controllable, like Cheong buys this to hold prepares to pay the finance, the result fund did not return, the question is exposed." "Ku Xiantao said.


Alipay Seven shares up to 98.4%


aside the prepaid card and the receipt of two pieces, in the online payment of this market, the most iconic third-party payment agencies are Alipay. In addition to it and Taobao in the field of online shopping together "capture" countless "prodigal female" and achievements of Ma Yun, the Research Institute of Statistics can also explain the status of Alipay.


Eric Research data show that 2014 third party Internet payment transaction size of 8 trillion yuan, an increase of 50.3%, the third party mobile payment transactions of nearly 6 trillion yuan, an increase of 391%, about 2011 turnover of 80 times times. Among them, Alipay's market share accounted for 49.6%, Tenpay accounted for 19.5%, UnionPay accounted for 11.4%, fast money accounted for 6.8%, remittance world accounted for 5.2%, Yeepay payment accounted for 3.2%, IPs accounted for 2.7%, others accounted for 1.6%.


Alipay How to dominate the Internet to pay half the sky? In this respect, the Yangtze River business newspaper reporter Call Alipay PR director Zhu Jian. He said that because Taobao was first introduced to pay and trust issues, and the Internet was also just beginning to develop, pay and confidence is a bigger problem, 2003 years Alipay on the secured transaction (the seller and the buyer's transaction security issues) such an innovative way to participate in.


In addition, Ku Xiantao also talked about the fourth of the fast money, "fast money 100 million a year pure profit, but it finally chose to be Wanda acquisition is not a way out, but to go farther and more stable." And the third tier of payment agencies once "can't afford", can only sell the capital preservation. ”


talked about the merger and reorganization, Shanning to the Yangtze River Commercial news reporter disclosed that, now, including Shenzhen, Beijing, many third-party payment agencies are already taking the "merger and reorganization" or the road, because the third party to pay the development today, if there is no certain qualification, and only by charging fees to profit, is unable to withstand the later operation and maintenance.


Mao Yabin also said that large-scale third party payments can generally achieve profitability, UnionPay and Alipay are independent, not independent (parasitic on E-commerce Web site payment) Third-party payment of the representative enterprise, with the ability to achieve profitability, "small business of the third party pay is not necessarily." ”


In addition, China UnionPay president Shivenchi at the 2014 Summer Davos TEF club theme Cocktail party said: "The central bank currently approved 269 third-party payment companies, which if there are three or four real profits, it is quite good results, the rest of the basic loss of money." ”


Central bank or withholding licence mobile payment as the biggest opportunity


In the face of the failure of most third-party payments agencies to find a profit model, only vicious competition, or even the status of the crisis of honour, perhaps the central bank has shot. It is understood that "strict payment institutions market access, encourage the existing institutions mergers and acquisitions, sustainable development and sound market exit mechanism, the study of the implementation of the classification of payment institutions, grading supervision" has been written in the central bank in February issued the "2015 Payment and settlement work" notice.


for "The central bank to suspend third-party payment licences, encourage mergers and acquisitions," the rumors, Shanning in the phone that the head for a while, slightly helpless to say: "It is possible." He said that the current North Canton has suspended the bid, second-tier cities should have a share, but the specific data is not convenient to disclose. Next, the state may impose a mandatory control on the number of licences, as the current threshold for the North's deep claims has improved, for example in terms of company qualifications.


"The number of licences in the market is already large enough and the central bank may suspend the licence." "I also think rumors are going to come true." Yang of the International Business Department of the Guangdong branch of Yin Ying Tong Payment Co., Ltd.


according to statistics, from 2011 to last July, the central bank issued a total of five batches of third-party payment licences, but since then there has been no further licensing, the current licensing unit is still maintained in 269.


policies will tend to merge and restructure, in view of this, Mao Yabin analysis, mergers and acquisitions is the most direct method, due to the clear division of three Third-party payment licence functions, third party payment of the source of profit is strictly limited, so there will be third-party payment mergers and acquisitions, so that the third party to pay the license to get more complete, to 1+1> 2 effect.


"The central bank encourages mergers and acquisitions, but this is not the only way out." "The biggest problem facing Third-party payments is the sustainability of the profitability model," Ku Xiantao said. "Mobile payment in lieu of cash payments, no future cash transactions, this is the biggest opportunity in the future, but the specific how to operate depends on the strategic layout of each enterprise." "When it comes to paying the market the next possible path, Shanning this analysis.


Mao Yabin also believes that payment market still has a lot of business to be developed, including mobile payment of a variety of offline payment methods, the current domestic online payment mode is still to swipe card, cash payment mainly, mobile payment is currently in the domestic basic is to be developed state, but mobile payment also faces many difficulties, Including the installation of equipment needs a huge cost, mobile payment security issues are to be resolved.

What are the future opportunities for the
payment market? Alipay PR director Zhu Jian said that on the one hand from the online payment development to mobile payment, on the other hand, from the simple payment business development to serve the Internet finance.


2014


Third-party Internet payment transaction size of 8 trillion yuan, an increase of 50.3%


third party payment profit model


mainly includes charge handling fee, reserve payment interest income, prepaid card interest income, platform build profit


Third party payment license is divided into three kinds


Network payment (such as online shopping), prepaid card issue and accept (such as business card), bank card receipts (such as POS machine card)


2014 third-party mobile payment transactions on the scale of nearly 6 trillion yuan, an increase of 391%, about 80 times times the 2011 turnover


Yeepay Payment


3.2%


to pay the world


5.2%


Quick Money


6.8%


UnionPay


11.4%


Tenpay


19.5%


Alipay


49.6%