New life, new changes” opening phrase
Mobile payment, online shopping, shared bicycles… These new things, which are generated by technological innovations such as the Internet and big data, are widely “absorbing fans” around the world, and are quietly changing your life and my life, becoming a bright and beautiful display of the strong innovation vitality of Chinese enterprises New business card. These new formats, new occupations, new products, and new models have brought us “new life and new changes”.
These days, if you don’t scan a QR code to pay, you can’t be considered a young person. Even the elderly can wear reading glasses during the Spring Festival, and happily grab red envelopes and give out red envelopes. The new payment method brought by the mobile payment war has quietly changed the way of life of many people.
At the beginning of August, WeChat and Alipay once again fought in the field of mobile payment. The two sides launched “Cashless Day” and “Cashless City Week” respectively. These two third-party payment institutions that occupy most of the mobile payment market have attracted the attention of the central bank. The concept of a “cashless society” has attracted a lot of controversies. At a time when mobile payment brings more and more convenience to consumers and gradually becomes a mainstream payment method, issues such as the security of mobile payment itself, whether cash payment will be replaced, and how to regulate the mobile payment market are still social concerns. focus.
Mobile payment opens a convenient transaction mode
In a Chinese restaurant in Beijing, the clerk told Ms. Wang and her friends that they could directly scan the WeChat self-service order QR code in the lower right corner of the table to order online. Ms. Wang entered the restaurant’s menu through the QR code. On the page, each dish has clear pictures and real-time prices displayed on it, as well as store promotions, etc. Online payment will also include full discounts and red envelopes, which is much cheaper than cash payment. Ms. Wang said that not only do you no longer have to wait for the waiter to take the menu to order food, but you also don’t have to wait in line at the cashier to pay at the checkout, which saves a lot of time, and AA-based consumption among friends has also become easier, as long as the payer agrees to eat together Several people in the group initiate group collection, enter the amount and number of people, and the system will automatically calculate the amount payable by each person and initiate collection to everyone.
Mobile payment has penetrated all aspects of our lives, bringing great convenience to our lives. Everyone said that it is very convenient to pay with mobile phones.
“I can now use the electronic bus card in Alipay to take the bus. I only need to bring my mobile phone when I go out. I no longer have to worry about losing the bus card or having no money on the card. It is much more convenient to go out.”
“Now you don’t need to look for change for buying fruits and vegetables, and you don’t need to have so much change or coins in your hand.”
“I now use Alipay and WeChat to pay for clothes in shopping malls, and I don’t need to swipe my bank card.”
“Now I don’t carry cash when I go out, and people around me don’t use cash much anymore.”
Not only do consumers feel that mobile payment is more convenient, but stores also feel the convenience of mobile payment. A staff member of a chain supermarket told reporters, “There are quite a lot of people who use mobile phones to pay for shopping in supermarkets. For consumers, mobile payment is more convenient. In addition, Alipay and WeChat have discounts from time to time.”
“Currently, people who pay in cash in our store are similar to those who pay with mobile phones. In terms of convenience, it is more convenient to pay online. The machine will arrive at the account as soon as the machine is swiped, but the existing fee is withdrawn.” A restaurant cashier said.
In May 2017, in the selection of China’s “Four New Inventions”, which was participated by young people from 20 countries along the “Belt and Road”, Alipay was selected in the second place. At present, six major cities in China, Hangzhou, Wuhan, Fuzhou, Tianjin, Guiyang, and Changzhou have entered the “cashless city”. In Hangzhou, more than 95% of supermarkets and convenience stores can use Alipay to pay; more than 98% of taxis support mobile payment.
The 39th “Statistical Report on Internet Development in China” released by the China Internet Network Information Center shows that as of December last year, the number of mobile online payment users in my country has grown rapidly, reaching 469 million, with an annual growth rate of 31.2%. The proportion of online payments increased from 57.7% to 67.5%. The rapid penetration of mobile payment into the offline payment field has greatly enriched payment scenarios. 50.3% of netizens use mobile payment and settlement when shopping in offline stores.
On July 31, the “2017 Smart Life Index Report” jointly released by Tencent, the Chongyang Institute for Financial Studies of Renmin University of China, and the French consulting company Ipsos showed that among more than 6,500 residents in 324 cities in China, 40% of the When people go out, they carry less than 100 yuan in cash. 52% of them use cash to account for 20% of their monthly consumption. More than 70% of the respondents said that the 100 yuan in cash on their bodies is enough for them to use for more than a week. Interviewees said it was convenient to go out with only a mobile phone and no cash.
Alipay and WeChat start “hand-to-hand combat”
To snatch the fertile market soil of mobile payment, Alipay and WeChat Pay, the two giants of China’s mobile payment, continue to engage in hand-to-hand combat. From the early red envelope battle to the current “cashless city” battle, the competition between the two sides has never stopped.
In January 2014, WeChat took the lead in launching the Spring Festival red envelopes and entered the mobile payment market. Since then, every Spring Festival, electronic red envelopes are an indispensable carnival feast, and it is the battlefield where major mobile payment giants are scrambling to conquer cities, and WeChat red envelopes and Alipay red envelopes are often the main force in the Spring Festival red envelope war. WeChat Pay, which relies on the rise of social networks, has become a direct competitor of Alipay. Since the appearance of WeChat red envelopes, transactions between WeChat friends, WeChat group members, WeChat users, and online merchants have promoted the rapid popularization of WeChat Pay and the popularity of WeChat users. Rapid growth.
Alipay, which has many years of online payment experience and has become the mainstream payment method for online shopping, also has two powerful trump cards. First, Alipay is associated with two major shopping malls, Taobao and Tmall, which are owned by Alibaba. These two major websites have a share of 83% in the mobile e-commerce market. They only accept Alipay as payment. Second, Ant Financial, an affiliate of Alibaba, established Yu’e Bao, a fund in 2013, to help users invest idle funds in their Alipay accounts. Just after its launch, Yu’ebao’s 7-day annualized rate of return was close to 7%, almost instantly killing all bank deposit interest rates, which prompted users to transfer funds in their bank accounts to Alipay, and users could use Yu’ebao funds online and online Direct shopping.
On August 8 this year, WeChat Pay ushered in the third “Cashless Day”. The world’s first “Cashless Day” was initiated by WeChat Pay on August 8, 2015, and is scheduled for August 8 every year. From August 1st to 8th this year, WeChat Pay launched the 2017 “8.8 Cashless Day” campaign in various cities and with merchants across the industry to subsidize WeChat users with incentives and other methods, cultivate users’ mobile payment habits, and use small programs and other methods. Drive traffic to businesses. After WeChat successfully deployed offline through the “Cashless Day”, Alipay also refused to give up this big cake easily. This year, it also actively participated in this cashless event and launched the world’s first “Cashless City Week”, namely The first week of August every year. This year’s “Cashless City Week” event has more than 10 million offline merchants participating. During the event, mobile payment can be used to draw cash rewards and gold prizes. Gold draws will be launched every Friday and Saturday throughout August, and the highest daily reward is 4888 yuan.
According to iiMedia Research, in the first half of 2017, the two giants, Alipay and Tenpay, accounted for 94.1% of the market share in terms of transaction scale, indicating a high degree of market concentration. In the first half of 2017, only 20.9% of netizens expressed optimism about Apple’s efforts in China’s payment market. iiMedia Research analysts believe that the third-party mobile payment market has entered a mature stage, and the duopoly market pattern of Alipay and Tenpay is initially determined. Mobile payment is related to national financial security. There are institutional constraints for foreign-funded companies to develop China’s payment market. At the same time, the development of users’ payment habits is not conducive to their development and growth. As the country tightens regulation of the Internet financial industry, the existing market disruptors may come from the “national team”. In the future, there will be a three-pronged market pattern in China’s mobile payment market.
According to a consumer survey released on August 1 by FT Confidential Research, an independent research institution under the British “Financial Times”, China’s online payment market may compete, but compared with the latter Rival WeChat Pay, Alipay occupies a dominant position. The agency surveyed 1,000 Chinese urban residents. Among these respondents, 82.6% chose Alipay as the main payment method, 64.3% chose WeChat payment, and other payment tools were at a disadvantage.
Mobile payment security remains controversial
The “2016 Mobile Payment Security Investigation Report” released by China UnionPay shows that in 2016, not only the proportion of users who suffered payment fraud has increased, but the amount of damage has also continued to rise. About 1/4 of the respondents have been deceived. The year’s survey results rose 11 percent. Among them, there are mainly fraudulent methods such as payment-sensitive information leakage, telecommunication network fraud, and password-free theft.
From the “2016 Mobile Payment Report” released by the China Payment and Clearing Association, it can be seen that security risks are the most concerning issue for mobile payment users. 52.4% of users believe that the security of mobile payment transactions needs to be strengthened in the future. In addition, problems such as payment failure, slow network speed, and unsupported merchants are also of great concern to users.
According to iiMedia Research, in the first half of 2017, 36.8% of netizens expressed no expectation for the establishment of a cashless society, 34.8% of netizens were in a wait-and-see state, and over 70% of netizens expressed concern about the security of mobile payment. iiMedia Research analysts believe that the establishment of a cashless society is conducive to solving the problems of theft and loss of traditional cash, but threats such as technical loopholes and malicious fraud hinder the establishment of a cashless society. To improve the security of mobile payment, enterprises and the government should work together. Enterprises should actively innovate payment technologies and models to ensure the security of payment transactions. The government should improve the construction of mobile payment laws and regulations to ensure that payment stakeholders conduct transactions in a standardized and legal environment.
Some experts said that my country does not currently have the conditions to fully enter a cashless society. The new payment media needs to re-engineer the existing transaction, clearing, and payment systems, and the construction of relevant financial infrastructure will take time. In addition, my country’s existing legal system and industry standards are still flawed, and a series of problems such as security, customer anonymity, and business compliance must be overcome technically, to provide a good technical foundation and improve the stable and healthy development of the mobile payment industry. The industrial support and even the institutional environment.
“Cashless” does not mean rejecting RMB
The “Cashless Day” and “Cashless City Week” activities in August were carried out with the help of WeChat and Alipay. Thousands of offline merchants joined the mobile payment marketing battle. The mobile payment performance standards and cashback threshold agreed by the third-party payment platform refuse consumers to use cash payment and only accept mobile payment methods, which has caused dissatisfaction among consumers and heated discussions in society.
According to media reports, the Wuhan Branch of the Central Bank first interviewed the person in charge of the public relations department of Ant Financial, the parent company of Alipay, at the end of July, and put forward three requirements: remove the word “cashless” from the “Cashless City Week” activities; Promotional slogans containing the words “no cash”; public notices to merchants not to accept RMB cash. The news also quoted “central bank insiders” as saying that the head office issued a document asking all branches to follow the practice of the Wuhan branch to strengthen guidance on cashless payments.
However, the person in charge of the relevant departments of the central bank quickly responded that the central bank did not issue a document requesting the banning of “cashless”, they did not hate “cashless”, and would not interfere with the market promotion of cashless activities, but should not There is a cashless behavior.
At present, the “cashless” society advocated by mobile payment institutions may cater to the general trend of mobile payment, but “cashless” cannot completely replace cash payment, and there are still a small number of groups who cannot use mobile payment smoothly.
According to the “2016 Mobile Payment Report”, in 2016, mobile payment users under the age of 30 accounted for the largest proportion, accounting for 76.4%; followed by users aged 31-40, accounting for 16.8%; 41-50 years old and 51 years old The above users accounted for only 6.8%.
Regarding the behavior of merchants who refuse to accept cash during the “cashless” event, some people feel that this is discrimination against the elderly. Mobile payment should be the mainstream trend, but it does not mean that the use of cash should be canceled or eliminated.
According to a recent report released by the Ministry of Civil Affairs, China has more than 230 million elderly people over the age of 60, accounting for 16.7% of the total population. The vast majority of the elderly cannot adapt to the changes brought about by new technologies. They do not use smartphones, let alone applications and mobile payments in mobile phones. , they are gradually marginalized by new technologies, and “cashless” may mean more troubles than convenience.
In addition, unlike first- and second-tier cities, some areas with insufficient infrastructure investment are faced with the unwillingness of merchants to invest in infrastructure or bear operating costs for electronic payment, which is also a problem that needs to be solved before mobile payment is truly popularized.
The mobile payment market that needs to be regulated
On August 4, the Payment and Settlement Department of the Central Bank issued the “Notice of the Payment and Settlement Department of the People’s Bank of China on Migrating the Online Payment Business of Non-bank Payment Institutions from the Direct Connection Mode to the Networking Platform “(hereinafter referred to as the “Notice”) to relevant financial institutions. “). The “Notice” requires that from June 30, 2018, all online payment services involving bank accounts accepted by payment institutions will be processed through the network connection platform. At the same time, all banks and payment institutions are required to complete the preparations for accessing the network connection platform and business migration before October 15 this year.
Netlink, also known as the “online version of UnionPay”, refers to the online payment and settlement platform of non-bank payment institutions, that is, the online payment unified settlement platform. Its role is similar to that of UnionPay, and it is a clearing platform. The difference is that the main role of the network is to connect one end to third-party payment institutions, and the other end to connect with banks, and to provide unified standard services for all connected third-party payment companies.
As of June 30, 7 payment institutions including Tenpay, Online Banking Online, Kuaiqian, Baifubao, Alipay, Ping An Payment, and Yipay have been connected to Netlink, and UMPAY and China Mobile’s e-commerce access work has entered the countdown. . These 9 large and medium-sized payment institutions are candidates for directors and members of the board of supervisors of the future operating institutions of the network platform. These 9 institutions account for more than 96% of the total network and mobile payment transaction scale.
The previous delivery model for mobile payments was for each payment institution to connect directly with multiple banks to connect with merchants and consumers. The information submission of online payment is scattered in payment institutions and banks. After connecting through the network, the information will be aggregated uniformly. This change will improve the stability of the payment system, greatly reduce the system access costs and operating costs of payment institutions and banks, objectively promote fair competition, and benefit the development of small and medium-sized payment institutions. For consumers, funds will be more secure. However, under the support of the network platform, various market participating institutions will stand on the same starting line, enjoy equal treatment in business processing and business prices, give full play to the advantages of business innovation, and form differentiated competition in price and service. The existing mobile payment landscape may be a reshuffle.