Foreign market expansion - cross-border B2B payment market is steadily improving
Strict supervision and increased difficulty in profitability of third-party payment institutions
While the third-party payment business has grown rapidly, there have also been some chaos. For example, individual third-party payment companies misappropriate customer reserve funds and super-privileged business operations, which seriously endanger the stability and security of the payment market. Since 2017, the central bank has become more stringent in its supervision of third-party payments, including: strict issuance and assessment of payment licenses, severe penalties for violations of laws and regulations, disconnection of payment institutions and direct connection to banks, access to legal liquidation organizations, and deposit of reserves. The purpose is to urge the payment institution to return to the business source. The latter two items may have an impact on the operating profit of third-party payment institutions: before the direct connection, the payment institution can freely cross-bank clearing and negotiate the rate with the bank, and in the future will be unified with the clearing agency network to connect, some payment institutions The advantage of the previously accessed bank resources is no longer obvious; the original reserve interest is a considerable income, and can be used as a bargaining chip with the bank, and will gradually increase the rate of payment in the future. The profit margin of paying itself is limited, and the market competition tends to be fierce and strong. In the future, the difficulty of third-party payment institutions to rely solely on payment business profits will increase.
The C-side payment field presents a monopoly pattern, and third-party payment has opportunities on the B side.
The two giants Alipay and Tenpay are firmly in the mobile payment market. According to the report released by iResearch, in the third quarter of 2017, Alipay and Tenpay occupied a market share of approximately 94% of mobile payments. The largest share of mobile payments is the personal application section (including credit card repayment, bank card transfer, bank card to virtual account transfer, virtual account transfer), and is basically oriented to the C-end population. Small and medium-sized third-party payment institutions lack scenarios and traffic. Compared with the giants, the financial strength is not strong enough, and the C-side competitive advantage is small. However, at present, it has the advantages of low communication cost and flexible service for small and medium-sized B-end customers. Customers generally have a larger single fund, which is more concentrated than the C-end. The requirements for traffic are low when developing customer resources, and there is room for third-party payment institutions to compete for the market.
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