November 29, 2021

Standard wants to ignite the battle of mobile payment

"The era of mobile finance has arrived." China Merchants Bank President Ma Weihua said recently that in the future, the mobile payment industry will usher in an explosive growth under the transformation of the younger generation's consumption methods with "post-80s" and "post-90s" as the main body. .

In 2012, it was regarded as the first year of "mobile payment". On the one hand, the "China Mobile Payment Standard" drafted by the central bank is coming soon, and the relevant policies will be further clarified and improved; on the other hand, banks, UnionPay, operators, third-party payment and other companies have gradually increased investment to fully advance mobile payment market.

Crossing the "standard" Kaner

Recently, Fan Shuangwen, deputy director of the Payment and Settlement Department of the People's Bank of China, said that the mobile payment standard agrees with the 13.56MHz standard promoted by China UnionPay. This will mean that the three-year standard dispute between China UnionPay and China Mobile has ended. It is understood that the mobile payment standards still need to be signed by several major departments, and is expected to be officially released at the end of this year.

"The establishment of the 13.56MHz standard will bring a huge boost to the development of the entire mobile payment market." Analyst International analyst Zhang Meng told this reporter that if there are two standards, there will be adaptation of different standards The problem, for operators, will lead to repeated configuration of payment terminals, resulting in waste. For consumers, different standards also bring inconvenience to use.

According to the latest data from Gartner, as of the end of 2012, the number of global mobile payment users will reach 212 million, and the global mobile payment transaction amount will reach 171.520 billion US dollars. It is expected that by 2015, these two data will increase to 384 million people and 472.805 billion US dollars.

Many people in the industry said that after the standard is established, mobile phone manufacturers can rest assured to produce 13.56MHz standard near-field payment mobile phones, and third-party payment companies can also carry out product development. The potential capabilities of the industrial sector will be fully released, and mobile payments will gradually enter the fast track of development.

New troubles

After the standards are established, safety and regulatory issues will become increasingly prominent. In this regard, Zhang Meng said that mobile payment involves both communication and payment industries. The People's Bank of China and the Ministry of Industry and Information Technology have regulatory responsibilities. Who should take the lead in both? How should the two parties coordinate when problems arise during supervision? "I believe that both parties will solve these problems in the original intention of promoting the development of the mobile payment industry."

Guo Tianyong, director of the Banking Research Center of Central University of Finance and Economics, said that regulatory issues involve mobile users and need to communicate with mobile operators in many ways under the premise of supervision by the People ’s Bank of China.

Some professionals also said, "Now banks are exempt from handling fees for mobile banking in order to attract customers. But this cannot be normalized. Certain fees will be charged in the future, and there are currently no specific regulations and methods for charging."

Regarding security issues, Zhang Meng believes that mobile payment manufacturers and regulators will test mobile payment products to ensure security from the source. "Of course, during the operation process, mobile payment security is dynamic. With the advancement of technology, the guarantee of security will continue to develop."

Join forces

On the battlefield of mobile payment, financial institutions represented by UnionPay and banks have complete and mature capital clearing systems, while operators and third-party payment institutions occupy huge customer resources and sales channels.

Therefore, commercial banks have chosen to "join the attack" with their respective strategic partners. For example, CCB and UnionPay launched UnionPay mobile payment, ABC, UnionPay and China Telecom cooperated on "Zhangshang Wallet", and China Merchants Bank and HTC jointly launched NFC mobile phones equipped with China Merchants Bank's "mobile wallet".

Among them, the reporter found that China Merchants Bank has begun to shift the focus of mobile payment from the mobile phone card to the mobile phone itself. According to the China Merchants Bank, the focus of the product is the payment chip embedded in the mobile phone jointly developed by the two parties-as long as the customer uses a mobile phone with a payment function, no matter what phone card is used, fast payment can be achieved.

Previously, Ding Wei, vice president of China Merchants Bank, also said that cooperation with HTC is only the first step for China Merchants Bank to enter the mobile payment market. Subsequently, more mobile phone brands and models equipped with China Merchants Bank ’s “mobile wallet” application will be launched, and cooperation between China Merchants Bank and the three major operators is also under negotiation.

Operator's way

Traditional payment companies and banks have followed up mobile payment clients because their products and technologies have a low threshold, which can naturally continue the brand and user base of the Internet era and exert their operational capabilities.

The focus of operator payment companies is the basic payment capabilities of the entire mobile Internet world.

Zhang Meng said that there are currently three main profit models for mobile payment, namely forward user service fee, settlement fee and backward merchant service fee. Mobile payment is currently in the early stages of development, with investment as the mainstay, and the first benefit is terminal manufacturers, and for operators, the most important way of profit is the handling fee.

Chen Jianwei, product director of China Telecom Payment Company, believes that operator payment companies should combine mobile phone POS to innovate unique business models. Traditional industry applications focus on solving information flow problems for enterprise customers. After overlaying payment capabilities through mobile POS, they can better serve customers and increase revenue. In the business model, obtaining a stable and reliable package share and transferring the cost of payment fees to many optional bank channels will make the operator payment company stand up one level without being involved in chaotic payment price competition. In addition, the operator's users are opened to hardware vendors and client operators, and mobile phone POS payment clients are provided to mobile phone users.

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