The combination of Apple Plus UnionPay and Alipay and WeChat is essentially the competition between the hardware ecosystem and the mobile Internet. This not only tests the hardware products, but also tests the system development and operation capabilities. Except for Apple, which can do all the hard and soft work, no hardware maker can do it.
This year is destined to be the year when the mobile payment industry has entered an explosive period. Just after the violent red envelope war ended, WeChat announced the withdrawal fee. At the same time, Pay also announced a high-profile entry into China.
On February 15th, WeChat of GF Bank and Construction Bank simultaneously announced that Pay will be officially launched at 5 am on February 18th. The reporter found on Apple's official website that the first batch of 19 banking partners that announced their support for Apple Pay included Bank of China, Agricultural Bank of China, Industrial and Commercial Bank of China, China Merchants Bank, Bank of Communications and other mainstream banks.
Unlike WeChat and Alipay, Apple's mobile payment does not need to open any APP, but through the NFC antenna design, as long as the Apple terminal product is close to the POS terminal of UnionPay Cloud Flash Payment, and the fingerprint is verified, the payment can be completed. Apple Corp. expects to launch Pay in Hong Kong, Singapore and Spain in the second half of this year.
Analysts believe that Pay's simplification of the process is conducive to increasing the frequency of use, but because it has higher requirements for terminal equipment, the user base that can be covered will not be too large in the short term. Its offline will attract some users, and in the field of online payment, Pay will not challenge Alipay and WeChat.
However, Pay's entry into China has undoubtedly played a role model for other hardware manufacturers. Under the background of hardware profit ceiling, mobile phone terminal manufacturers may compete to develop mobile payment business, and the industry is expected to enter an explosive period.
Insiders pointed out, "The combination of Apple and UnionPay with Alipay and WeChat is essentially the competition between the hardware ecosystem and the mobile Internet. This not only tests the hardware products, but also tests the system development and operation capabilities. In addition to Apple's software Hard-to-take, no hardware maker can do it. "
Apple UnionPay join hands As Apple's mobile payment service, Pay first launched in the United States in October 2014, landed in the United Kingdom in July 2015, and launched in Australia and Canada in November. China is the fifth country to support Pay. In December last year, Apple officially revealed that it would cooperate with China UnionPay to enter the Chinese market, but has not disclosed specific information.
Until February 18, this service will be officially launched. Compared with the official high profile of UnionPay, Apple officials have remained silent about this and have not been interviewed by 21st Century Business Herald reporters.
It is understood that users can load debit or credit cards on Apple terminals such as iPhone, Watch and iPad. Not only can you spend on offline POS machines, you can also pay online in the APP mall.
Yu Ying, chief marketing officer of Carrefour China, revealed in an interview with 21st Century Business Herald that Carrefour stores will also be connected to Pay as soon as possible on the 19th. "Because Pay mainly relies on UnionPay's channels, it will also participate in a series of UnionPay preferential activities."
However, for the specific fee ratio, China UnionPay, Apple and merchants did not disclose more details. According to the "Notice on Optimizing and Adjusting Bank Card Swipe Fees" issued by the National Development and Reform Commission, the bank card swipe fee standards are divided into four categories, of which the "dining and entertainment" fee is 1.25%; the "general category" such as department stores and wholesales The handling fee is 0.78%; the handling fee for "people's livelihood" such as supermarket, water, gas and gas payment is 0.38%; while the handling fee for "public welfare" such as public hospitals and public schools is based on the service cost, and the service fee of the issuing bank, bank Card clearing organization network service fees are all zero. Card issuers, acquirers, and transfer agencies generally allocate 7: 2: 1, that is, the card issuer receives 70% of the merchant bank card settlement fee, the acquirer is 20%, and the UnionPay transfer agency receives 10%. .
Although UnionPay's revenue will be eroded by Apple's participation, cooperating with Apple is still the best choice for its mobile payment. Senior TMT observer Wang Yunhui told the 21st Century Business Herald reporter that in this cooperation, China UnionPay will benefit the most-leveraging Apple's user base and strong influence to promote cloud flash payment business is of great significance to UnionPay. The subsequent competition for offline merchants is not so much the way that UnionPay and third-party payment platforms fight for Apple and BAT to grab the market in mobile payments.
The disruption of the mobile payment market and the high attention of users has laid a good mass foundation for Pay's entry into China.
Judging from the previous technology, the payment models of WeChat and Alipay are separated from acquirers, transfer agencies, and card issuers. This makes them face competitive pressure from China UnionPay and other banking institutions from the very beginning. And Apple's unique technology has achieved a multi-win result.
Public reports show that Apple uses "Tokenization" technology to convert bank card information into a string (Token) and store it in the phone. Whenever the user pays, the mobile phone generates a random Token and a set of dynamic security codes to the bank through the Token, and the bank then restores it to a bank card through the Token service to return authorization to complete the payment. This process does not touch the interests of any party in the traditional payment system.
This is also an important reason why the aforementioned Guangfa Bank and China Construction Bank and China UnionPay made a high profile to users.
"In addition, Apple also solved the problem of local offline scene expansion that it can't handle by UnionPay, which is also a very valuable breakthrough." Wang Yunhui added.
However, it is not easy for first-time Apple to want to "take the tiger's mouth" from Alipay and WeChat Pay. At present, online payment is almost monopolized by Alipay. In the field of mobile payment, Alipay and WeChat have basically divided up the entire market.
Public data shows that in the second quarter of 2015, the transaction size of China's third-party mobile payment market reached 3.5 trillion yuan, a month-on-month growth rate of 22.81%. Behind the huge market increase is actually driven by giants such as BAT through a large number of subsidies, festivals, red envelopes and other activities. These marketing initiatives have gradually cultivated consumers' mobile payment habits. Take the New Year's Eve Red Envelope as an example. Alipay issued nearly 800 million red envelopes that night, and QQ released data showed that a total of 308 million users participated in swiping red packets, and a total of 2.234 billion red envelopes.
In the fierce competition of mobile payment, the existence of China UnionPay is always low. Analysts believe that for Chinese users, they still value subsidies and preferences. If Apple and UnionPay are not ready to drop hundreds of millions of subsidies, even if they hold hands, it will be difficult to shake the existing market structure.