Third party payment or pro industry shuffle

Absrtact: Some Internet companies, including electricity dealers, are interested in acquiring other smaller licensed payment companies because they fail to get the cards, and can also control the cash flow and the huge third party payment market

Some internet companies include electricity dealers, because its own payment platform failed to obtain the licence, it is intended to acquire other smaller licensed payment companies, can not only get rid of the hidden dangers of trading data leakage, but also to control the cash flow, as well as a large third party to pay the market a piece of soup, is more than one.

Last May, the central bank issued a "non-financial institutions payment business license" to 27 institutions, the third party paying licences.

So far, a total of four batches of 197 organizations have been granted this licence.

With the increasing number of licensed enterprises and the rapid expansion of market size, the competition in the third party payment field has intensified.

At the same time, the rapid development of third-party payments and the enormous potential to ignite a lot of "bystander" enthusiasm-Jingdong mall has completed the third party payment company net Silver Online acquisition, the formal layout of the third party payment industry.

The industry has been very concerned about this. There is a point of view that the independent distribution system is conducive to the integration of upstream and downstream industry chain, further to the network retail platform; There is also the view that as more and more foreign companies pay for the Blue Sea March to third parties, there will be a tougher competition for the 197 institutions that are already in place, and perhaps soon The industry shuffle is coming.

Plan an independent payment system

According to the business registration information, Jingdong Mall has recently completed a third party payment company net Silver Online full acquisition, the formal layout of the third party payment industry. Data show that the Third-party Payment Enterprise network Silver Online (Beijing) Technology Co., Ltd. has become more than the founder of Jingdong Mall and CEO Liu, the company registered capital of 100.5 million yuan, its payment business license valid until May 2, 2016, the business covers bank card receipts, mobile phone payments, Fixed-line payments and internet payments.

In this regard, tenpay strategic development people believe that the business layout of the independent payment system to meet the higher standards of payment requirements, to provide customers with tailor-made payment experience, on the other hand, to shorten the capital chain, improve the efficiency of financial management will also have a catalytic role.

In fact, the idea of Beijing's desire to get a slice of the payment industry has long been a long-standing one. As early as last year, Jingdong stopped the cooperation with Alipay, and the main reason is attributed to the high cost of Alipay, through this way to reduce operating costs. But the industry has already seen the clue-Alipay is one of the largest competitors in the company Alibaba's companies, for data confidentiality considerations, Jingdong and Alipay "Break up" reason is not difficult to understand.

At that time, the market is widely expected to introduce its own payment system in the near future, after all, the potential of this area can not be overlooked. According to the calculation of the industry, according to the number of users published in Beijing, the use of third-party pay-paid potential users close to 30 million. In addition, the Beijing-east side also showed the "right to pay" expectations. Liu once admitted that Jingdong's online payments were paid by third parties, and the payment data were not in their own hands. If the introduction of their own payment system, the user in Jingdong shopping behavior in the Jingdong system, Jingdong will be able to obtain more user information, but also easier to enhance the user experience.

And in the following period of time, Jing Dong is slightly calm, chose with UnionPay, Tenpay, fast payment and other 7 institutions to pay settlement cooperation.

Until the above mentioned business registration data changes, Jingdong "payment Blueprint" finally has a thick and thick.

It is understood that net silver was founded in 2003, registered capital of 100.5 million yuan, in Beijing, Shanghai, Guangzhou, Shenyang and other locations with offices, the existing staff of more than 200 people, and including 4 major banks, UnionPay and agricultural credit and other financial institutions to establish a cooperative relationship, opened more than 300 bank settlement interface, Support a variety of terminal payment forms and payment tools.

Last May, net Bank received the first batch of third party payment licences issued by the central bank at the time of its business in terms of currency exchange, Internet payments, mobile phone payments, and fixed-line payments. At the end of June this year, the company was approved by the Central bank to update its business scope for internet payments (nationwide), mobile phone payments (nationwide), fixed-line payments (nationwide), bank card receipts (Beijing).

The "enclosure" movement of electric Dealers

In fact, there is not only a third party to pay the strategy of the Electric dealers in Beijing east.

As early as the end of 2009, Alibaba's Alipay company has announced that Alipay's registered users have reached 270 million. Means Alipay has gone beyond PayPal to become the world's largest electronic payment platform.

The earlier layout of the third party paid by Su Ning. Last January, Suning appliance registered a wholly-owned subsidiary, "Nanjing Suning Yi Bao Network Technology", and in that year won the first batch of third-party payment licences.

In addition, Suning involved in the payment agencies also include Anhui Huaxia Tong Payment Co. It is understood that China Tong to pay the large shareholder Wuhu million, the controller for Suning appliances, at the same time, the company's second and third largest shareholder for Suning appliances and suning is easy to buy, from the shareholding structure, Suning direct holding and indirect holding of Anhui Huaxia Tong's equity total of 94.76%.

Why the electric dealer to the third party payment so value, send generation Network analyst Li Chengdong think can use "indispensable" to describe. "At present, many of the larger network sales platform have their own payment system, because the payment tool is the platform of the entire operating system is an important link, if you can effectively operate their own payment system, the entire supply chain will be more smooth." ”

As for the acquisition of Jingdong, Meng, a senior international analyst at Analysys, said some internet companies, including electricity dealers, are interested in acquiring other smaller licensed payment companies because their own payment platforms fail to get the cards, both to escape the hidden dangers of data leaks, to control cash flow, and to share a huge third-party payment market. .

In this way, reducing operating costs is not the main reason for the "enclosure" of electric dealers. Take Jingdong as an example, Liu previously revealed that about 80% of Beijing's turnover from line Nieder to payment, this year's estimated sales of 45 billion yuan, online payment of about 9 billion yuan, times 3 per thousand of the rate, the cost of about 27 million yuan. This figure is not very large compared to other expenditures. The company's financial data show that in 2011, the cost accounted for 6.6% (2.97 billion yuan in 2012), advertising costs 2.3% (2012 about 1.035 billion), technology and management costs accounted for 1.5% (2012 about 675 million).

In addition, in the view of the Tenpay personage, the electricity dealer layout Third party pays to achieve the supplementary cash flow the body now, uses the independent payment system of higher security to obtain the enterprise to have the more well-off financial account period. Insiders generally believe that through third-party payment to improve their business, to seek a broader space for development has become the domestic e-commerce industry to achieve international standards.

Huge Market Size

Of course, regardless of which kind of "enclosure" form, the impulse always inseparable from the scale. From the past figures, has already laid out the third party payment field of electricity dealers have a huge market share advantage.

According to the statistics of Meng, China's online retail market volume reached 806 billion in 2011, and the net purchase users reached 198 million. Among them, the business of electronic commerce continues to maintain a fast pace of development, reaching a scale of 240 billion.

In the whole market scale, Tmall with 35.4% of the share leader, Suning's development speed is more rapid, in the past year has promoted to the top three position. "We expect that in the next few years, online shopping will continue to pry the entire social retail system, maintain a sustained growth, is expected to reach 10% of social sales by 2014." The online retail market is also becoming more and more important in the whole social retail system. "Meng said.

In addition, data from the CNNIC show that as of August this year, the Alipay net-users covered up to 129 million, the first place in each organization, a per capita daily visit 200 seconds. In contrast, financial institutions online payment Enterprises ICBC's Internet users cover 52.88 million.

In addition, third party payers also maintain rapid growth in terms of fast payment. Alipay vice President Genming has said that by the end of the year, Alipay's fast-paying users will be over 120 million. and the development of electronic banking over the years, it is estimated that the real user will not be more than 300 million, but fast payment is 1.5 of the time reached 120 million.

As a result, large scale business opportunities allow many companies that have not yet been involved in third-party payments to be too shy to miss the best competitive opportunity. It is understood that the vast majority of the 197 institutions that obtain third-party payment licences are financial services, operators, traditional enterprises and the Internet.

However, the market pattern is showing a "one-sided" situation, and difficult to break in a short period of time-Analysys International latest statistics show that the 3rd quarter of 2012 China's third party Internet online payment market pattern remains stable, Alipay, Tenpay, silver on the internet to pay 46.9%, 20.4% respectively And 11.5% occupy the market top three, three companies occupy the entire market 78.8% of the market share.

In this context, not all third-party payment agencies are profitable. It is reported that a well-known third-party payment company last year had a loss of 150 million, at the same time, the fast-money CEO Guoguang also publicly said that the total amount of money handled last year reached 1.2 trillion yuan, the first to achieve the annual break-even, while many other small and medium-sized institutions have yet to get out of the loss. On the other hand, the price wars waged by the electric-business platform have kept the profits of third parties paying for their meals down. "Jing Dong, Su Ning's electric business war, the most unlucky is the Third-party payment company." Because the space itself is very small, the only thing that can squeeze is to pay the company. Therefore, the payment rate has been pressed downward. Genming admits.

And the industry is widely believed that the net silver online was bought, and its business situation is not related to the decline. Yeepay paid Vice president Tang has said, "net silver online scale is small, Bai, belong to the second line of payment field camp." There were some moves in 2007-2008, and there was no sound in the past two years. ”

Where is the future road

In Tang's view, the problem with online banking is business miscellaneous, and there is no core model. "The scale of the payment companies have their own core model, such as Alipay guarantee mode, Yeepay pay the industry customer model, UnionPay's gateway model." ”

But in the face of growing market competition and the possibility of being "easy" for third party payers, what is the future?

The aforementioned Tenpay people also have this concern, in the third party payment field presents a huge market size and industry potential, there will inevitably be many "outsiders" to dig this blue sea. At the same time, because many small and medium-sized payment enterprises do not have a strong "background" and poor profitability, do not rule out the possibility of such a takeover event.

At the same time, as more and more electric dealers, network operators began to layout an independent payment company, the original cooperation agencies will also face the possibility of marginalization, in a sense, an industry shuffle may be coming, there have been analysis that within a few years, "separatist" market enterprises may not exceed 5.

For the current development trend of third-party payment, Meng is summed up in three aspects: first, to expand the new market segments, expand the existing business scale, followed by opening up new business, the third is to follow the industrial chain business extension. In the face of severe competition, Meng that the success or failure of future payment enterprises depends on innovation, efficiency and cost.

Statistics show that 2011 third party payment scale of 2.2038 trillion, an increase of 118.1%, but the industry generally expected, as the market gradually saturated, the future expected growth is not optimistic, very likely in 2015 to decline to 20% of the growth level.

For the future development, Guoguang attitude is slightly cautious. "If the third party pays the company to stay in the position of 3 years ago, that is the wholesale and retail relationship with the bank, it must be competitive, and will certainly lose miserably." Now is an important period of industrial change, the real importance is information services, rather than unified into a simple traditional sales. ”

In this way, change and innovation appear imminent. As with any other industry, competition will produce the fittest, unable to break out of enterprises will be difficult to get rid of mergers, acquisitions and even the possibility of bankruptcy.