UnionPay, which has taken root for fifteen years, has become a giant in the field of bank card payment and liquidation in China. However, under the wave of mobile internet and payment technology innovation, UnionPay has inevitably been affected. On March 26, on the occasion of the fifteenth anniversary of UnionPay, UnionPay President Shi Wenchao delivered a speech. He suggested that UnionPay failed to take the lead in the mobile Internet era. The reason is that in the "last 100 meters", this will be UnionPay will focus on solving the problem in the future. However, in the case that the payment market has been nearly 90% divided by Alipay and WeChat payment, UnionPay’s “last 100 meters†may also be the most difficult distance to pass.
Payment giant in the field of liquidation
Founded in 2002, UnionPay is the first card organization in China, which has realized the interconnection of banks across the country, and has promoted and witnessed the journey of China's payment methods from cash, passbooks, checks to bank cards. At present, it is also the bank card association organization with the largest number of card issuance and transaction volume. Shi Wenchao introduced in his speech that the number of cards issued by UnionPay has reached 6.5 billion.
UnionPay is undoubtedly fortunate, and the back of the data cannot be separated from the blessing of domestic monopoly status. The scale of domestic payment market transactions is in the order of tens of trillions. The central bank, banks, clearing houses and payment institutions are the four main players in this system. Among them, China UnionPay has long been the sole transfer agency, providing comprehensive services such as clearing and technical support for the use of interbank and cross-border bank cards.
On the other hand, UnionPay has also opened its doors overseas. At present, UnionPay has established a clearing operation network in more than 160 countries and regions. The number of merchants that can be paid overseas by UnionPay cards has exceeded 20 million, and the number of ATMs supporting UnionPay cards has exceeded 1.3 million. UnionPay cards have become the mainstream payment tools for Chinese outbound.
However, in the past 15 years, the market has undergone earth-shaking changes. Shi Wenchao recalled with emotion: from card to card, it reflects the change from card-based to account-based payment connotation; mobile phones have long exceeded the scope of portable instant messaging tools and become personal information processing. System terminal; the payment industry will also become more and more profitable, and the payment rate in China has already been less than 40% of the international average rate. At the same time, the property of payment as the starting point and end point of all economic activities is continuously strengthened. The competition for payment institutions to seize the payment of entry resources is intensifying, and the “cross-integration†of payment and other commercial links will be deepened; big data, cloud computing, districts New technologies such as blockchains and artificial intelligence are surging, and new technologies are spawning new formats.
The "dwarf" of the mobile payment era
In 2012, China's offline bank card acquiring market has a scale of 8.9 trillion yuan, UnionPay has more than 90% market share, and offline merchants use POS machines at a rate of about 1%, but online business is difficult. "The right to speak".
Soon, the mobile Internet broke out, bringing a more fertile ground for Internet payments. Although UnionPay has successively launched “UnionPay Online Payment†and “UnionPay Mobile Paymentâ€, the third-party payment companies represented by Alipay have built a high threshold for online payment market and accumulated a strong customer base.
What makes UnionPay unpredictable is that these third-party payment companies are racing at very fast speeds. After losing online payments, UnionPay’s offline business began to be swallowed up. In March 2012, Alipay launched the first shot to seize the offline payment market, and announced that it would spend 500 million yuan to lay out the POS machine business within three years. Although the business was soon stopped by the central bank, the subsequent payment of the two-dimensional code became the biggest weapon to seize the "cake" of offline payment.
In the second half of 2015, Alipay and Tenpay began to exert their efforts in the field of QR code payment, and repeatedly used real money and red envelopes and promotional activities to increase the frequency of users and enhance user stickiness. In just over a year, QR code payment has jumped into an important way of mobile payment. Industry insiders pointed out that non-bank payment institutions have nearly 100 billion yuan of online payment scale for the first time, surpassing last year's full-year GDP.
Alipay and WeChat pay more to overtake UnionPay and stand in the forefront of the payment market. According to the latest report released by Bida Consulting, according to market share, Alipay ranked first with 52.3% in 2016, and Fidelity ranked second with 33.7%. The two payment giants accounted for nearly 90% of the share; Lakara, Baidu Wallet, Jingdong payment, etc. are located in the second echelon, accounting for 13% of the market share; more than 250 payment institutions, including UnionPay, accounted for only 1.4% of the market transactions, and were included in other.
UnionPay is not without action. Following the launch of “Cloud Flash Pay†in “Double 12†in 2015, UnionPay also supported Apple Pay, Samsung Pay, Huawei Pay, etc. from a number of banks to guide banks to expand the NFC payment market, but the effect is not obvious.
Difficult "last 100 meters"
In December last year, UnionPay officially released the "UnionPay QR Code Payment Standard" and announced its participation in the war. A few days ago, UnionPay confirmed to reporters that it plans to achieve 2 million merchant access and 17 national commercial banks to pay the QR code payment function by the end of May this year. The relevant person in charge of UnionPay also revealed that it will not rule out the same year as the third-party payment institution, taking a year-long reduction in spending and other preferential activities.
Xue Hongyan, a senior researcher at Suning Financial Research Institute, said that in the dispute over the standard of scan code payment and NFC payment, scan code payment has gradually become the mainstream choice of the market. At this time, UnionPay United Bank adjusted its business strategy and vigorously promoted QR code payment. Seeing it is a way of doing things.
UnionPay's QR code payment still has an inherent advantage. Wang Pengbo, an analyst at Analysys Internet Finance, believes that UnionPay's two-dimensional code payment standard provides convenience for small and medium-sized payment companies to develop two-dimensional code payment, which is the basis for cooperation between the two parties. Because UnionPay is also a transit clearing institution, in addition to WeChat payment and Alipay, more payment institutions are settled through the UnionPay channel. Therefore, small and medium-sized payment institutions will be more likely to accept UnionPay's QR code payment standards and subsequent launches. Related products can also borrow the UnionPay scanning code payment terminal to reduce the promotion cost. For UnionPay, the more payment institutions that access UnionPay, the greater the scale advantage of UnionPay.
However, "the market structure of QR code payment will not change in the short term." Wang Pengbo believes that WeChat and Alipay have the advantages of e-commerce and social scenes, and have built a “moat†in terms of the number of users and merchants, and their status will remain relatively stable.
"The ability to retain users lies in the frequency of use of the app, the experience of paying for the product, and the number of scenarios. It should be said that under the current market structure, the long-term effect of the hard-to-hard product promotion model is extremely limited, and open cooperation with market giants. It may be a more desirable strategy," Xue Hongyan said.
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