The overt behind the innovative business model

Absrtact: As long as the fingerprint payment method can be easily consumed. This kind of fingerprint payment business is Shanghai Li Bai Fun Information Technology Co., Ltd. and Cooperative Bank, the joint for individual users with fingerprint without password electronic payment business, currently in Shanghai has two

It is easy to consume by way of fingerprint payment. This kind of fingerprint payment business is Shanghai Li Bai Fun Information Technology Co., Ltd. and Cooperative Bank, joint for individual users with fingerprint without password electronic payment business, currently in Shanghai, more than 20,000 merchants support fingerprint payment, more important is to open fingerprint payment, consumption can enjoy discounts and concessions.

The overt behind the innovative business model

The payment mode looks more like an upgraded version of group buy, but it is different from group buying.

Established in 2006, Asia's only fingerprint payment operator, after three years of "Infrastructure", 2009 officially launched in Shanghai, "finger-pass" fingerprint payment business, currently Bai Fun has with ICBC, Bank of China, Bank of Communications, Shanghai Bank and other nine banks to establish a cooperative relationship, Joint introduction of fingerprint without password electronic payment business.

If it's just a fingerprint payment business, and a consumer discount by fingerprint payments, you may think this is just an innovative technology + group buying mode, but in the planning of Chen Xiaofeng CEO, this is actually a completely innovative business model, with the help of this new business model, can be "agents" and "investor "Brings easy investment returns.

Industry insiders believe that the means to pay through the model looks more like the upgrade of the enhanced version of the group, but also different from the group buying mode. In the group buying mode, the group buying website does not participate in the business, and will not invest in the business, only to provide a platform for group buying, to help businesses promote and sell, and then get commission from the merchants.

However, refers to the payment of the mode is the first to advance a large sum of money to the merchant, so as to obtain a lower discount; refers to the general household to the merchant after consumption, the merchant will be back to make the advance, the interest can be 10% to 20% additional discount spreads. The difference between a group purchase is that the user does not need to pay in advance, but in the consumption of payment can be.

Why do you have this strength and financial resources to buy early business goods and services, on the one hand, the 2012 "refers to the" access to CICC, Lenovo, Ding-hui and other large Chinese-funded consortium 500 million Yuan investment, with considerable financial strength; On the other hand, the new shopping mall model is funded every day. , that is, the daily consumer to the corresponding merchant's consumption money will be paid through the network to return to pay pass, therefore, there will be no significant financial pressure.

So, what is the profit of the pay pass? For the payment of a nationwide third party payment licence issued by the People's Bank of China, there is a pay network, which means that payments made by the user will be transferred to the account on the second day of consumption, thereby realizing the investment repayment of the payment. After each transaction is successful, you can earn the difference between the settlement discount and the user's consumption amount. This business model can generate profits up to 10%~20% depending on the type and size of each merchant.

Share wealth with "agents" and "investors"

It refers to the introduction of the concept of "capital operator", which makes it possible for each user who uses the reference to pay to make money.

Currently, the company has developed nearly millions of users in Shanghai, as well as thousands of brands and more than 20,000 merchants. The next step is to get out of Shanghai and expand the business model in more cities across the country. Refers to the development of the business in the country needs of the partner is to set up a purchaser, responsible for the selection of local quality merchants, representatives to pay for the purchase of their investment services. So as to provide consumers with local quality service, but also effectively control the payment of funds risk.

"Due to the need to be very familiar with the local business and consumer environment for local procurement, the agency has been established as a localized agent system." Of course, Changtong for agents have strict screening requirements, the need to have a rich local government and social resources, with a considerable team operation and management experience and strong financial strength. "Li Bai Fun CEO Chen Xiaofeng said.

February this year, the introduction of a fingerprint payment and the National Bank card receipt payment platform based on the "refers to the treasury" online electronic stored value card platform. Refers to the wealth of electronic stored value card distribution platform, is to refer to the Changtong payment settlement platform as the basis, so the agent will be at the same time "refers to finance" and "refers to pay the" two platform of the agent, and can be referred to the Platform Commission and refers to the payment of a transaction fee of two yuan profit.

If the agent in a city laid 500 means to pay the terminal, that is, 500 contracted merchants, conservative estimates according to the transaction fee can be divided into 0.5% splitting and 5% of the means of the Financial Platform Commission distribution ratio, a merchant daily only produce 1000 yuan turnover, Then the monthly income of 825,000 Yuan, a year for 9.9 million yuan, which is not the future of the platform to collect membership fees, if the local has 100,000 users, to each user charged 10 yuan/year membership fee, then only the income of 1 million yuan a year.

"Agents only pay 300,000 yuan a year, that is, 25,000 yuan per month agency fees." This is not equal to a month to invest 25,000 yuan, opened a local large shopping center Mody. Chen Xiaofeng figuratively.

In addition, it refers to the introduction of the concept of "capital investment operator" by the "investment operator" by means of the "Electronic stored value card" issued by the purchasing merchant, and authorizes the users to pay free access to the "Electronic stored value card" discount, "investment operator". The profit is the price difference between the actual consumption price and the purchase price after the user enjoys the concession.

For example, the merchant and refers to the financial platform after the launch of the platform to issue a face value of 500,000 yuan X-fold electronic stored value card information, to give "capital operator" procurement discount of 80 percent, that is, "capital operator" capital contribution of 400,000 yuan can be purchased to the merchant 500,000 Yuan service. It means that the 400,000-dollar value is split into 4,000 according to the value of 100 yuan per copy to the "investment operator", when 4,000 "investment operators" a total of 400,000 yuan to complete the purchase of electronic stored value card, all means that the user can x discount to the merchant consumption of a total of 500,000 yuan of services.

If an electronic stored value card of 500,000 yuan is consumed within two months, all the "investment operators" in the two-month investment income is 100,000 yuan, the profit margin is 25%.

Review of International Business Model Research Institute

Better to shorten the value chain

Through the successful development and introduction of the Changtong, refers to the wealth, to create a "virtual shopping center", access to bank support and large-scale consortium investment, Shanghai has also received more than 20,000 merchants to cooperate, from the current development is indeed a good project.

But when the project begins to replicate in a first-tier city or elsewhere, two problems are encountered. The first is the difficulty of the agent selection, the project's import cycle is long; the business model of the interest of capital flow is very high, so at the beginning of the introduction of large consortia support, in order to have sufficient financial strength to buy products or services to merchants, in order to obtain a lower discount.

Such a model is not a general agent can operate, for the agent's funds and promotional capacity has certain requirements, such as the need for capital conditions can be first cushion, procurement of quality merchants, preferably there are some land resources or buy resources to promote and sell products or services procurement; mode determines the demand for agents higher, which will undoubtedly have a certain impact on the speed of replication.

The second problem is that the value chain is too long, involving at least five links, include: agents, merchants, consumers, banks, Li Bai interest, each link has its own ideas, such as agents want to be high profits, merchants want is cash, consumers want to lower discount, the bank needs a lot of cash flow, It needs promotion and operation mode.

Once one of the links out of their own interests and disregard of the rules of the game, it is easy to break the value chain, so, the Bai fun to face to these partners the controllability of challenges, in our view, only to find ways to shorten the value chain, the future can develop better.