The hidden trouble and prospect of the electronic payment industry's melee refraction

In the context of the financial crisis, many industries have suffered a fatal blow, especially in Europe and the United States and other countries, financial institutions have been hit. However, China's electronic payment industry has a unique landscape, according to Analysys International statistics show that the fourth quarter of 08, the third party electronic payment total transaction size reached 85.17 billion yuan, the chain growth of 29%. In this fast-growing market, the competition between third-party payers and the electronic payment of payments to banks is also being fiercely carried out, and what is the future of the payment industry in the course of this wave of dredging? The author tries to analyze from the following aspects.

Are banks electronic and electronic payment vendors rivals or partners?

Electronic banking is an inevitable trend, for example, the development of credit cards in domestic commercial banks has become the mainstream business, but the bank's credit card system is still far from meeting the needs of users, especially in repayment, the mainstream repayment channel is the bank counters and ATM machines, regardless of space or time is not convenient, In this regard, the electronic banking is a future trend. These demands, not only by banks, but also by third-party payment platforms, are better than banks.

Secondly, in the field of international credit card payment, Visa's partners in banking have Bank of China, ABC, CCB, and the first letter of the third party electronic payment, in which IPs has many years of experience in international credit card payment and good risk control system, Doing better in this field than commercial banks.

So is the bank electronic and third party payment between the opponent or partner? If the key point of view, the bank's mainstream business is to deposit loans, and electronic payment is to facilitate the payment of bank payments, Third-party payment platform receipts and risk control system than the bank has a greater advantage, so this is the third party to pay manufacturers and banks to cooperate with the foundation, That is why banks are willing to work with vendors. In terms of industry segmentation, banks are more focused on the functions of financial institutions, while third parties pay for services, how to better innovate products and value-added services, which is a more important way for third-party payments.

The price war between the third party payment vendors

Every piece of the Red Sea market, is bound to undergo a painful process, that is, the manufacturers in the industry competition in the use of the price war. In order to occupy market share, many third-party payment vendors have been experiencing the initial stage of the market with free service. This is a big worry for the whole industry, but it is also very helpless. Therefore, how to open up the blue sea market in the Red Sea market is the subject that the industry leader must explore. In the case of IPs, it is possible to make international credit card payments ahead of other rivals and to obtain visa cooperation. In this area, the high cost makes the price war stop here.

The final result of the price war will inevitably lead to the entire industry recession, the strength of the enterprise is not strong in the competition is eliminated, so the industry's norms are particularly important.

The significance of state regulation to third party payment

The issue of central bank licences has, to some extent, plagued the third party payment industry. Due to the lack of effective supervision, the problem of illegal credit card, payment credit and network security has been hindered by electronic payment. Tan Zhihui, deputy general manager of IPs, said: "Third-party payment platform precipitation funds and receipts are more than tens of billions of, the entire industry has matured, in this process, it is necessary to supervise the authorities, so I believe that we in this industry to survive there will be a good prospect. ”

At the beginning of the development of the industry, the policy of the country often lags behind, so that the industry can develop rapidly, after all, this is an industry that helps the national economy. When the industry matures, the state's supervision is obviously more conducive to the healthy development of the industry, the introduction of rules and regulations, to avoid many illegal operation and vicious competition, such as IPs, the first letter such an excellent enterprise, will certainly get better opportunities for development. (Zhou Ningning)