The core of third party payment is depth and breadth

The third party payment business is regarded as the electronic commerce Booster, once completely by the electronic commerce enterprise oneself undertakes. In the process of business planning for E-business Enterprises, as the understanding of third party payment details and banking business deepens, the decision makers of these enterprises often give up the development of their own Third-party payment platform and choose Professional third party payment partners instead.

It can be recognized that the difficulties of developing third-party payments are mainly as follows:

• Policy threshold: The Government for banking-related industries more supervision, not a certain scale of enterprises want to pass the CBRC, the bank and other management departments of the approval is extremely difficult. At the same time, the state for foreign-funded enterprises to enter the bank-related industries more stringent control, limited the background of foreign-owned Internet carrier enterprises range of activities.

• Capital Threshold: Third party payment involves a large amount of money, the business enterprises must have sufficient financial strength to ensure the size of margin positions and risk-resistant ability.

• Technical thresholds: 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 several 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, the general enterprise unbearable.

Currently engaged in Third-party payment business enterprises are divided into two categories: a class and e-commerce platform, such as Alipay, the other is independent operation of third-party payment business, such as IPs. By studying these business and development strategies, we can see the following trends:

1. The future of third party payment is broad.

According to CNNIC's 23 Internet reports, Chinese Internet users have reached 290 million, with 70 million of them participating in online shopping, and 50 million using the Internet. The network pays an annual growth rate of 56%.

2007-2008 User Comparison of E-commerce applications (CNNIC23 Internet report)

End of 2007

End of 2008

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

22.1%

4,600

24.8%

7,400

2,800

60.9%

Internet Sales

-

-

3.7%

1,100

-

-

Online payment

15.8%

3,300

17.6%

5,200

1,900

57.6%

Travel reservation

-

-

5.6%

1,700

-

-

According to the report, the United States and South Korea Internet users to buy 70%, which means that online shopping and network payments are expected to follow the natural growth of the Internet, the proportion of the possibility of doubling.

From the internet perspective, to Jingdong Mall, where the customer prudential products represented by the E-commerce industry is growing rapidly, or even completely unaffected by the economic crisis. Community E-commerce is also quietly emerging. ----Everything lays the foundation for the development of the third party payment.

2, third party payment gradually began to move towards specialization.

The third party payment business has been divided into two camps which depend on E-commerce platform and operate independently. In the early days of Internet development, the third party payment which attached to E-commerce platform was developing rapidly. However, the development of the Internet today, many e-commerce enterprises in the choice of third-party payment methods, can not avoid such a problem: the choice of own Taobao E-commerce platform Alibaba Group Alipay or select the professional operation of third-party payment of IPs and so on?

3. The core competitiveness of third party payment lies in breadth.

A deep examination of the third party payment model, we can realize that breadth is the core of the business development that the third party pays.

Data show that there are currently 14 national joint-stock banks, 2 national-owned banks, 114 local commercial banks. In addition to the 5 major state-owned banks we know and the Bank of ICBC, the space for third-party payments is still vast and blind. From each payment site, Alipay to 60 of the number of cooperative banks alone show; professional third party payment enterprises, the rapid payment in the near future, Hangzhou Bank, Nanjing Bank and so on to close to 30 of the number of more than many well-known companies.

On the basis of the development strategy of 2 and 3 echelon commercial banks, it is a kind of model to develop the business with the help of the electronic payment method and the technical force of the professional third party payment enterprise. For example, the Bank of Nanjing, many people around me through the Nanjing Bank card to collect wages, in the past, the bank's automatic teller machine has been not very convenient, the queue is also very long. As a result, customers are regularly withdrawing money to deposit them in several big state-owned banks or better services. When the third party pays the enterprise to intervene, may conveniently through the network payment, through the IPs payment service to cross the bank repayment, the user's custom will change greatly, will not be anxious to transfer.

We see a large number of regional commercial banks, the accumulation of social funds through regional advantages of a huge amount. At the same time, users who use online electronic payments are also growing rapidly.

4, the third party payment has been the field of precision, customized services.

Payment and repayment are two major problems that plague banks and depositors, and they are the causes of bank queues.

In the case of banks, the charging business has complicated the teller business, and the production rate has declined or even a slight loss. However, local banks often have to provide such services free of charge for large corporate deposits. For young, internet users, it is often necessary to waste a few 10 minutes in a local bank queue for a small amount of 1 or 2 minutes of payment.

We see that Alipay has launched a service to pay for utilities, and IPs has launched a trans-bank repayment service, while China's mobile web site also hangs out with third-party payments. It can be foreseen that the electronic payment of premium services will soon appear.

We can also see that C.A.T and Icpay (International credit card payment) services also appear in the third party payment business, before the convertibility of the renminbi is realized, we cannot expect the substantial growth of individual users. But we can realize this to the foreign trade enterprise pays the convenience.

Electronic payment is gradually freeing us from the meaningless waste of time in line, the social progress is that the ancestors spent 1 hours in line, and we will spend this hour on the flowers and the tree-lined road walk or sports. (Text/Dream Qinhuai)