UnionPay flash pay POS can play "Jingdong white strip"

A stone stirs up a thousand waves. Jingdong Finance announced the launch of “White Strips”, and nearly 20 million UnionPay POS machines and 8 million merchants can support “white bars”.

It is understood that this is a joint electronic account jointly launched by Jingdong Finance and Bank. It can be regarded as an electronic bank card. The card number can be bundled on the mobile payment tools such as Apple Pay, Huawei Pay, Xiaomi Pay, etc. Payed on the POS machine.

Experts in the industry believe that China's consumer finance market started late, in the past, the service subjects and objects were very narrow, and the service content lacked innovation. Since 2014, domestic consumer finance has really entered a stage of rapid growth. A number of financial technology companies have emerged in the market, which plays a key role in promoting the development of the industry. The advent of “White Strips” has enabled Internet consumer finance to achieve full-scale coverage under the line, or it will bring positive stimulus to the industry and ultimately lead to changes in the industry landscape.

More than 8 million merchants can use "white strips" to pay mobile payments

With the rapid growth of disposable income of residents in recent years, the potential of China's consumer finance market has been accumulating, and the opening of culture and concepts has also gradually changed the consumption habits of the Chinese people, and has increased consumer demand. However, in the past, domestic banks mainly relied on commercial banks to provide personal loans, bank cards, personal wealth management, and consumer financial services collected and collected. The limitations of business types also led to higher thresholds for domestic consumer finance, and only a small number of people could enjoy related services. Therefore, at that time, the main subjects and targets of domestic consumer finance were very narrow, and the service content was changed from the traditional banking and financial business, lacking corresponding innovation ability.

As Xu Ling, vice president of Jingdong Finance, said, “The core of finance is an information industry. Any financial management is good, or loans are issued. It is actually selling a message and symbols. How much money we have, In addition to the real cash that can be handed, the other is a symbol on your bank card account. This symbol is linked to the individual, endorsed by some kind of credit, indicating the value of the credit value, and then we can change the equivalent amount. The value of the real thing. Therefore, in the future people will not care about the medium used for the circulation of funds, people will be more concerned about the convenience of providing services."

In February 2014, Jingdong Finance launched the “White Strip”. Jingdong Jin began to walk out of Jingdong at the beginning of 2015, and laid out the offline consumption scenes, covering the vertical areas of renting, tourism, education, and housing. This time, through cooperation with the bank, this co-branded electronic debit card is equipped with UnionPay cloud flash payment technology, which realizes the payment of the offline UnionPay POS machine, and expands the consumption scene to more than 8 million merchants at a time. This is arguably The "white strip" line breaks the ice.

There is room for expansion of domestic consumer finance products

In the more mature markets in the world, the main bodies of consumer finance companies are diversified. Non-bank financial institutions occupy an important position, and many entities provide consumers with more choices. In terms of credit system, there are specialized credit reporting agencies that provide consumer credit services, a large database of credit information and a large number of credit managers.

Foreign consumer finance products are also more abundant, generally including two categories: First, special-purpose loans, such as household durable consumer goods sales merchant POS loans, merchant membership cards, car loans, housing renovation loans, etc.; Cash loans, such as cash loans, cash advances, revolving credits, etc., are usually unsecured credit loans, based on the borrower’s integrity and repayment ability.

In contrast, the category of domestic consumer finance is very scarce. In fact, with the upgrading of consumption levels, domestic consumers are increasingly demanding diversified consumer financial products. In the future, domestic consumer finance can open up consumer and consumer spending scenarios, optimize product models in vertical areas, and provide customized services based on different characteristics of consumers and credit consumption in different scenarios.

Industry analysts believe that the development of consumer finance needs technology-driven, financial innovation under the Internet consumption habits needs to continuously expand and deepen the scene, so that the scientific and basic capabilities can reach users more effectively and more conveniently, and enhance the user experience. There is a long tail effect in the consumer financial market, which will also be the main growth point for the industry in the future. Building a technology risk control and consumer credit evaluation system based on Internet data will effectively help the market's long-tailed users to explore and help them realize their credit value.

From the experience of foreign countries, the development of consumer finance is not enough for enterprise-driven, and regulatory innovation is also needed as a strong support. “White Strip Flash Payment” is a bold innovation of domestic consumer finance. Based on consumer demand, it gives the second-class account a richer product form. The landing of this innovation has largely benefited from the open mindset of the regulatory authorities.

He Jia, head of the finance department of Southern University of Science and Technology and a double-employed professor at Tsinghua University, said that ideal financial innovation can complement financial regulation and achieve the same goal. The advent of “White Strips” has provided an excellent example of this view and also provides a model for financial innovation in the Internet environment.