UnionPay and banks and other giants entered the scan code to pay the market Ali Tencent "duopoly" pattern into history

Recently, UnionPay sent a letter to the third-party payment company on “cooperating to promote the cooperation of UnionPay card two-dimensional code payment products and related standard specifications”, clearly stating “to jointly research and promote the UnionPay card QR code payment products with third-party payment companies. jobs". As the main promoter of NFC payment standards, in the double 12 period of 2015, UnionPay has jointly launched more than 20 commercial banks in Beijing to release “Cloud Flash Pay” payment products, and relied on star products such as Apple Pay to trigger the mobile phone Pay card. This time, UnionPay led the development of QR code payment, which means that after the two-dimensional code payment "compliance", UnionPay and the bank began to bet on two lines, and the code-sweeping officially welcomed the giant players.

In the battle for online scenes, third-party payment companies once relied on the super-convenientity of sweeping code to pay for the superiority, relying on a large number of subsidies to occupy high-quality high-frequency trading scenarios, and also cultivated users' scanning code payment habits. This time, giants such as UnionPay and Banks have entered the mature scan code payment market, and how many waves can they set off? How much impact will it have on the existing market structure?

The safety of two-dimensional code payment is settled

On March 13, 2014, the Central Bank's Payment and Settlement Division issued a “extraordinary” text to the People's Bank of China Hangzhou Branch and the People's Bank of China Shenzhen Branch, suspended the payment of the QR code of the relevant payment institution and its virtual credit card with CITIC Bank. business. In response to this matter, the relevant experts of UnionPay interpret: "The essence of bar code payment is to convert offline credit card payment into online transaction by means of bar code technology such as two-dimensional code. On the one hand, the use of online and offline price differences to achieve regulatory arbitrage, It circumvents the state's regulatory requirements for offline transactions, violating the management requirements for off-site receipts; on the other hand, turning low-risk transactions into high-risk transactions has certain hidden dangers."

Indeed, in the current environment, compared with POS-specific equipment, the two-dimensional code payment lacked a unified safety certification standard, and relied more on the risk control level of the payment enterprise in the security of transaction information, and the risk control level among different enterprises. Uneven, full implementation is prone to risk risks. However, there are also views that the security issue is a difficult problem for all payment products to be eradicated. Even credit cards have many security risks, and the fraudulent incident has never been eradicated. Moreover, the security problems at the technical level are not problems. After all, the advancement of technology is changing with each passing day; while the security problems at the business model level require more time to verify, and new products should be allowed to go wrong.

In the view of the payment enterprise itself, the scanning code payment is to display the commodity information, the transaction information, the capital information, etc. in the form of a two-dimensional code, and the main security risk lies in the two-dimensional code information itself. I don't know the source code may contain Trojan information. Users scanning these QR codes will cause Trojan poisoning, but as long as the QR code itself is safe, such as changing the code from the user to the merchant and scanning the user's code from the merchant. This problem can be effectively avoided; in addition, with the advancement of technology, the payment platform has made great progress in identifying the risk of the QR code itself.

Finally, back to that sentence, technical security issues will not be a problem. From the later development, it was confirmed that the central bank was only “suspended” rather than “stopped”. Third-party payment never really stopped the exploration of offline scanning code, and quickly cultivated user habits with a series of promotional activities, successfully Occupy the offline small-frequency high-frequency trading scene.

Scan code payment to open the gate, the giant running into the field

Facing the rapid layout of third-party payment online scenes, UnionPay upgraded the technical standard of “Flash Pay” products in 2015, launched the “Cloud Flash Pay” brand, and jointly promoted it with banks and mobile phone manufacturers. However, the effect is not obvious. . At the same time, scan code payment has also begun to be officially recognized by regulatory agencies. In mid-July 2016, ICBC launched a scan code payment product; on July 26, the Central Bank Settlement Division issued a document to the China Payment and Clearing Association and China UnionPay, and issued a letter of intent on the bar code payment supervision principles and requirements; in early August, payment The Clearing Association issued the "Bar Code Payment Service Specification (Draft for Comment)" (hereinafter referred to as "Draft for Comment"), which means that the scan code payment was officially approved by the regulatory authority.

The "Draft for Comment" focuses on ensuring the security of scan code payment, including information transmission standards, application of payment tokenization technology, timeliness, etc., and clearly defines the transaction limits and transaction verification. The scan code payment is limited to the daily small-value transaction scenario, which is a useful supplement to the traditional offline bank card payment.

In the transaction verification, three types of information can be used in combination (only I know, my physiological characteristics, I own and unique and can not be copied or can not be reused), and implement the corresponding quota regulations according to different verification methods.

If the risk prevention capability reaches Grade A, and the transaction is verified by two or more effective elements including digital certificates or electronic signatures, the member unit and the customer shall agree on a one-day cumulative limit through agreement.

If the risk prevention capability reaches Grade B, and the transaction is verified by two or more effective elements including digital certificates and electronic signatures, the accumulated amount of a single bank account or all payment accounts of the same customer shall not exceed 5,000 yuan per day. .

If the risk prevention capability reaches the C level and the transaction is verified by less than two types of factors, the cumulative amount of a single bank account or all payment accounts of the same customer on a single day shall not exceed 1,000 yuan, and the member unit shall promise unconditional amount to bear the risk of such transactions. Loss liability.

The “compliance” of the scanning code has cleared the way for the bank and UnionPay to deploy the offline code scanning business. The “self-reserved land” paid by the third party has begun to challenge the traditional financial giants. From the current product layout of the banking industry, it currently mainly includes two types of products: scan code payment and cashier. The former mainly relies on mobile banking APP and directly competes with third-party payment scanning code; the latter is the aggregate payment product of scanning code payment. In essence, it is a cashier, and it is a cooperative relationship with third-party payment scanning code, which is not discussed in the focus of this article.

In view of the fact that the final standard for scanning code payment has not yet been clarified, the current banking industry's layout for scanning code-paying products is still in its infancy, and only a few banks have tested the water. Judging from the above situation, CCB “Dragon Payment” has launched a full card payment function, which has achieved coverage for other customers. As long as the merchant side is effective, it has great potential for development. In contrast, ICBC's “scan code payment” does not support the binding of his bank card, and intends to use its own power to divide the offline scan code payment market. However, as a cosmic line, ICBC does have this strength. As of the end of 2015, ICBC had 496 million individual customers, of which the number of mobile banking “melting e-banking” reached 190 million; personal customer financial assets reached 11.6 trillion yuan; bank card issuance amounted to 750 million, of which credit card was issued 109 million. The annual consumption of bank cards reached 8.84 trillion yuan.

Compared with the promotional volume of the cloud flash payment products launched last year, the bank scan code payment did not launch a large-scale promotion, and the market perception is not high. With the gradual improvement of product standards, more and more banks will launch offline scanning services, which will have an important impact on the existing market structure.

Offline scanning code pays to enter the new era of the competition

In the view of Suning Financial Research Institute, with the intervention of banks and UnionPay, the market competition for offline code-sweeping will become increasingly fierce. Consumers are expected to usher in a period of intensive preferential subsidies for about one year, and they can enjoy the giants’ “burning money”. Bringing fun. During this period, third-party payment companies that have not yet achieved profit or lack of strong capital support will be the first to go out. The market will also be dominated by the current third-party payment companies and the duopoly competition will enter more than ten national banks, UnionPay, and Sanwu. Third-party payment companies participate in the long-term competition phase. Since all parties involved are in good standing, there will be no players out of the game for a long time, and the duopoly market pattern will become history.

Judging from the competition between scanning code and cloud flash payment, although cloud flash payment has gradually got rid of the dependence on physical media cards, from the perspective of consumers, it is possible to achieve "one mobile phone to go to the world." However, considering that at the merchant end, cloud flash payment requires a dedicated POS device, and the credit card rate is higher (at least within 1-2 years of scanning code promotion), it can be expected that there will be a wave of scanners on the merchant side. The replacement of the POS machine, and the scan code payment is also expected to quickly invade the high-end, large-scale consumption scene of the cloud-suppressed "fixed", ushered in a broader development space.