UnionPay really has to incorporate third party agencies

Does UnionPay really have to "incorporate" third party organizations?

Alipay said "for some well-known reasons" will stop offline POS business--

"Yesterday, Alipay announced through its official microblog that it would stop all the offline POS business, Alipay did not explain why the business stopped, only to say" for some well-known reasons, "this statement has aroused suspicion, the suspicion is that China UnionPay wants to monopolize the third party payment market, Alipay under pressure to stop offline POS business. ”

Alipay said

will stop all offline POS business

Yesterday, Alipay announced through its official microblog will stop all the offline POS business, Alipay did not explain why the business stopped, only to say "for some well-known reasons", the statement instead caused suspicion, suspicion is that China UnionPay wants to monopolize the third party payment market, Alipay under pressure to stop offline POS business.

Alipay launched a logistics POS strategy in March 2012, announcing 30,000 Alipay POS machines to the market, covering all one or two-line cities. Perhaps it is foreseen that the Chinese Banking Association is dissatisfied with this, when Alipay Vice President Genming stressed that Alipay POS business only around the electricity business and launched, "Do not Rob UnionPay and the bank's business." ”

Alipay official micro-blog said that the original partner will be properly handled, will not affect the normal business of businesses. Alipay related personage discloses, before stopping the POS business scope to cover the electric merchant logistics, the Aviation Brigade Hotel, the on-line life service, the market puts in use the POS terminal equipment to have tens of thousands.

Industry insiders pointed out that, in fact, Alipay less line of business, stop POS business on the overall trading volume, the bulk of Alipay or online transactions, "Alipay stop POS business is mainly to make a point of movement, so that the outside world pay attention to the recent movements of UnionPay." ”

Alipay stopped offline after the POS business, will there be other peer follow-up? Yeepay payment, Lakara and other third-party agencies have told the Beijing Youth Daily Reporter, the current business development is good, not affected.

Yeepay said the agency's offline POS business is developing well and will not stop the business in the future. Facing the huge opportunity of internet finance, Yeepay payment is stepping up the layout to implement "Payment + Finance + Marketing" strategy, will pay more attention to the combination and mode innovation of the line business in the future, continue to focus on key industry, play the advantage of its industry pays leader.

Fast Money CEO Guoguang said: "For UnionPay this move cannot simply ' incorporation ' or ' ban ' to look." At present, whether online payment or offline payment, homogeneity of competition is very serious phenomenon. The development of the payment industry cannot rely solely on fees to make profits, but for UnionPay and third parties to pay each other further to open up and promote innovation through openness. On the other hand, in a new open and innovative environment, new rules are needed to maintain security and prevent risk. This is a dynamic process. ”

UnionPay said

Can win with third party

For the current delicate struggle with third-party payment agencies, China UnionPay related to the North Green newspaper reporter's questions gave a detailed reply.

UnionPay said that the commercial banks, non-financial institutions (third-party payment agencies) and other industries to carry out UnionPay card business, the use of the "UnionPay" brand, should abide by the joint recognition of all sides of the UnionPay card business rules, technical standards and market norms.

"Risk prevention is one of the important starting points of financial norm work." "UnionPay said, has found that some non-financial institutions in the development of UnionPay card business, in direct connection with commercial banks at the same time the type of change in the transaction, the application of MCC and other irregularities, resulting in commercial banks can not accurately identify the transaction scene and customer real transaction behavior, difficult to effectively implement risk control, It is easy to cover up the risks such as false card fraud, network fraud, money laundering and so on. In addition, some non-financial institutions in the process of business development through the interception of magnetic intercept, the private retention of cardholder sensitive information, but also to the cardholder's account information security threats.

For the industry to reflect the central bank's "receipt Business management measures" allows the receiving agencies to send transaction information directly to the issuing bank, UnionPay "eminence" practice and the "approach" contrary to this, the UnionPay said, "The measures" 26th stipulates that the receipt of the transaction information directly sent to the bank card issuing banks are " The issuing bank complies with the agreement agreed with the relevant bank card clearing institution. For UnionPay card business, the agreement here is embodied in the "UnionPay card Business Operation regulations."

In the view of UnionPay, the third party payment institution is connected to the UnionPay network, and can win altogether. At present, more than 60 major non-financial institutions have been connected to the UnionPay network. China UnionPay Union Commercial Bank carries out the standard work of the non financial institution's UnionPay card receipt business, which helps the commercial bank to understand the Non-financial organization's receipt business scene, grasps the customer transaction information, protects the cardholder's account information and the fund security better, and improves the cardholder's service level.

Industry view

UnionPay should not be both an athlete and a referee

Third party payments the industry generally believes that China UnionPay has asked Non-financial third party payment agencies to transfer through the UnionPay network, mainly in order to gain revenue through such a monopolistic liquidation of the market.

At present, there are more than 200 third-party payment agencies in the market. On the line, most of the business of a Third-party payment agency is no longer through UnionPay, and the online billing business already has the conditions to liquidate itself with the bank. There are people who do not want to be named in the industry with reporters simply calculate accounts, a line of cross-line card trading, merchants will pay a certain fee income, the money to be in the issuing bank, the receipt of a single agency and UnionPay distribution. The proportion of distribution is roughly 7:2:1. Since many third parties have been working directly with banks to get rid of UnionPay, third party payments have been made as "receipts" and "transfer clearing" two roles, receiving about 30% per cent of the fees. UnionPay does not earn the "1" of traditional offline trading. According to industry monitoring data reported by the media: third party payment agencies charged the merchant with a credit card handling charge rate of 0.6%, but the average rate for the issuing bank is 0.4%, leaving about 0.2%. In the debit card transaction, the third party pays the merchant side the handling charge rate is 0.1%―0.2%, to the card issuing bank's rate is 0.1%, the income is much less than the credit card. If the UnionPay network is connected, the handling fee paid by the merchant will be divided into UnionPay, apparently from the mouth of the Third-party payment agency. It has been predicted that after the "incorporation" of UnionPay, many smaller third-party payment institutions will be more miserable.

It is reported that "according to the research, in the UnionPay card online payment business, non-financial institutions to the main member banks to pay the actual fee rate is only about 0.1% per cent, significantly lower than the 0.3%-0.55% price level in the UnionPay network, according to the preliminary estimate, The major member banks have lost more than 3 billion yuan in the annual fee. "In other words, if the online payment fee is charged at the current price level of UnionPay, the additional handling fee will be more than 3 billion yuan for users."

For third-party payment agencies, it is difficult to work directly with all banks, so to a certain extent, it can not be separated from China UnionPay. Luode, president of China UnionPay, said that third party payment agencies must comply with the technical standards, wind control standards and rules of the UnionPay card if they want to access the UnionPay network. However, bankers believe that China UnionPay not only set industry standards, exercise a certain regulatory authority, but also in the field of network payments, POS receipts and other areas with banks and third-party payment agencies to form competition, both as athletes and referees, this is not fair.

This column/newspaper reporter Cheng Car

News memory

"Eminence" Bill submitted by UnionPay

On the July 24 of the four-term UnionPay's board of directors, UnionPay proposed "on the further regulation of non-financial payment institutions UnionPay card transactions to maintain the interests of member banks and UnionPay," the industry is called "eminence" plan to urge member banks to unify action, Gradually transfer the non-financial institution's UnionPay card transaction to the UnionPay network. The motion proposes, "before December 31, 2013, comprehensively completes the non-financial institution line UnionPay card transaction business migration, unifies pays the union UnionPay to connect, the synchronization standard Internet UnionPay card payment business"; "Before July 1, 2014, realizes the non-financial institution Internet UnionPay card transaction full access UnionPay." ”

To achieve the goal, UnionPay has formulated specific work steps, including "from September 2013 onwards, the member banks to stop to the non-financial institutions to open a new Pay Card payment interface, the stock interface no longer add cards to withdraw, transfer, such as UnionPay card business", "2013 before the end, Non-financial institutions offline UnionPay card trading in a joint or direct mode a little access to UnionPay network, commercial banks no longer retain their and non-financial institutions UnionPay card Line trading channel.