3. Technological service providers for B-end enterprises: As for other third-party payment enterprises, they either face vertical market segmentation or transform to technical service providers. Vertical segmentation market will also be affected by user usage habits and be infiltrated by giants, not a long-term solution. The strategy of Ebao Payment is to transform decisively. It no longer relies entirely on transaction fees in revenue. Technology and service revenue are becoming its new revenue and profit growth point. It also deploys in finance, marketing and other related fields, basically realizing the transformation from third-party payment enterprises to financial science and technology service providers.
In fact, the profit margin of the enterprise service market is much higher than that of the third-party payment fee, because the opportunity cost of replacing suppliers is more stable than that of ambassadors. However, the domestic market has not yet fully grown up, which is not only the shortage of the current market, but also the future business opportunities. After owning enterprise users, third-party enterprises can not only get the corresponding technical service fee income, but also bring part of the payment business to themselves.
When it comes to the third party payment, people will first think of Alipay and fortune pay. Will they cross the border payment again to divide the market together? Indeed, the domestic network payment market is increasingly showing the pattern of the two strong contending hegemony. Alipay and fortune pay occupy nearly 9 of the market share, resulting in the other third parties. The living space of payment enterprises is greatly reduced. However, due to the complexity and diversity of cross-border business market, the two giants who are sitting on e-commerce scenarios or user advantages do not have the huge advantages of the domestic online payment market in cross-border payment.
For example, in cross-border e-commerce, supply chain capabilities are no less important than platforms and users. Although Ali has the advantages of platform and user, its Tianmao International has not been able to determine its absolute leading position. Tianmao ranks first in the international market share, but only slightly more than 20 percent. It has not opened up the distance with other rivals such as Jingdong Global Purchase, NetEase Koala and so on. It is very sticky to each other. This makes Alipay want to achieve the expansion of the idea through Ali’s big platform.
Under the leadership of various departments, the “one belt and one way” plan has promoted the liberalization and facilitation of trade and investment and economic and technological cooperation among countries. State-led and non-governmental spontaneous cooperation projects have sprung up like mushrooms after a spring rain. Business exchanges and personnel exchanges between China and other countries have become increasingly frequent, which has led to economic cooperation among relevant countries and the rapid development of cross-border commerce.
At present, China’s cross-border payment coverage is relatively wide, and the development of various industries is relatively balanced, there is no industry with a particularly large proportion. Despite the rapid development of cross-border e-commerce in recent years as the largest market for cross-border payment, its share of cross-border payment has only reached 25%, which is not much different from the following three categories: Hotel accommodation, overseas education and air tickets. Together, these four types of businesses account for about 80% of the total. In other words, the current cross-border payment market is mainly concentrated in the service industry and cross-border e-commerce business.
Although the central bank launched the RMB cross-border payment system in order to promote the use of RMB worldwide and eventually become a global currency, it objectively created favorable conditions for third-party payment enterprises to carry out cross-border payment. On the basis of CIPS rules and technical standards, third-party payment enterprises can provide more practical industry solutions or customized services for enterprises, and the improvement of payment links, in turn, promotes the prosperity and growth of cross-border trade and exchanges.
2. Subdivisions with service group’s internal business as the main part: Many enterprises’internal business is very large, as long as they have a thorough understanding of their own business, even if there is no external business, they will live well enough. Among the enterprises applying for or purchasing payment licenses, there are not a few with similar ideas, such as New Metro University, Suning, Gome and so on. They are not so much the third payment enterprises as the sub-departments responsible for payment business within the group. One of the outstanding performers should be Ping’an One Wallet, relying on the resource advantages of Ping’an Group, the market share has been steadily rising in recent years, which is not easy.
As mentioned earlier, these two fast-growing businesses put higher demands on cross-border payments. Traditional international bank settlement and micro-remittance can not provide them with appropriate solutions in technology and services, so the rising third-party payment enterprises in recent years have been able to play a big role.
2. Increased proportion of service categories: This is mainly due to the close personnel exchanges, the increasing number of international exchange activities such as tourism, study abroad, conferences and exhibitions, which promotes the prosperity and development of hotel accommodation, air tickets, study abroad education, international exhibitions, tourism services and other industries. Individuals accustomed to mobile payment in domestic transactions hope to have a more convenient way of payment than small remittances.
1. On the basis of integrating the existing RMB cross-border payment and settlement channels, the intermediate process is reduced. Overseas companies can achieve RMB settlement through their domestic branches, thus improving the efficiency and security of cross-border settlement.
In the era of traditional foreign trade with less frequent exchanges, bank international settlement and small remittances can basically meet the market demand. However, with the increasingly frequent exchanges between China and the world, cross-border commercial exchanges have developed rapidly in recent years. The disadvantages of traditional payment methods such as bank international settlement and micro-remittance, such as long cycle and low frequency, have been magnified, which make it difficult to meet the needs of all parties and become a major bottleneck restricting cross-border commercial exchanges.
For example, aiming at cross-border import e-commerce industry, Ebao Payment provides diversified payment methods for commercial enterprises. After payment is completed, Ebao Payment will purchase and remit money to overseas suppliers in time. It not only supports the full currency, but also has the fastest time limit of two hours. At the same time, Ebao Payment has been docked with more than 20 Customs offices in China. It can push payment slip information to Customs and provide authoritative real-name certification service. It covers cross-border e-commerce business scenarios and meets customer needs. In addition, for the overseas study industry, Ebao Payment aims at the pain points of the industry and solves the problem of “full account” so as to make parents and students more convenient and worry-free.
In recent years, China has actively promoted supply-side reform to adjust the domestic economic structure, while vigorously developing foreign economic exchanges. “One belt and one road” is another symbol of China’s initiative to open to the outside world, and it is also an important driving force for China’s economic globalization.
On the premise of optimizing the market potential and returns of cross-border payment, it is not difficult to understand that many third-party payment enterprises regard it as an important new business growth point.
3. The number of small and medium-sized enterprises involved in cross-border business transactions is increasing: they enjoy certain advantages in the core competitiveness of products, services or user marketing, but they rely on social division of labor in other areas such as customs declaration, logistics and so on, and cross-border payment links are no exception.
High frequency, small and medium-sized enterprises and individual consumers have put forward new requirements for cross-border payment products: safe, convenient, simple and easy to use, fast settlement speed and low transaction cost.
At present, in addition to the two giants, 28 third-party payment companies have obtained cross-border payment licences. Unlike many third-party payment companies that hold payment licenses but do not actually carry out business, many of these 30 companies have entered the cross-border payment market, and the industry focus involved is different. It also shows from the side that the overall competitive environment of cross-border payment is better than the domestic online payment market.
Taking root in the 2B service market of cross-border payment brings a lot of returns to third-party payment enterprises. Taking Ebao Payment as an example, this third-party payment company, which is good at industry solutions and customized services, still maintains its core competitiveness in the cross-border payment market, locking its business direction in 2B business. Ebao Payment has entered many key industries, such as cargo trade, overseas education, air tickets, hotel accommodation and so on.
In the traditional trade era, most of the general trade is bulk import and export business, the number of capital exchanges is less, and the planning is very strong. Therefore, the two sides of the transaction can reasonably arrange funds by adopting the international settlement business between banks. At the same time, international exchanges are mostly professionals, the number and frequency are relatively small, small remittance business depends on the international network system, can provide them with more convenient services.
Traditional payment methods to cope with the lack of market changes, and the network payment giant’s advantages are difficult to play, giving other third-party payment enterprises a chance to show their fists. They do not have any advantages in 2C market compared with giants, but they are on the same starting line in 2B business. Other third-party payment companies may be more flexible and cost-effective than giants due to scale costs and organizational reasons. Therefore, some powerful manufacturers rely on their own technology and service advantages, through providing industry solutions or customized services, to focus on the more profitable 2B business, trying to obtain the most valuable part in the cross-border payment market.
3. The system runs for a long time and can cover the main business hours of RMB in different countries such as Europe, Asia, Africa and Oceania.
Payment is the basic service of the commercial system. There are two main forms of traditional cross-border payment before: one is inter-bank international settlement business, i.e. remittance through traditional international settlement instruments such as wire transfer, letter transfer and bill of exchange; the other is small remittance business represented by Western Union remittance. The former mainly aims at the general trade business between companies, while the latter mainly focuses on individual customers.
The “one belt and one way” policy is a rare opportunity, especially in the case of cross border payment. Many independent third-party payment enterprises should seize this rare opportunity to enter the enterprise service market, accelerate the pace of enterprise transformation, and become the core competitiveness of Internet financial service providers.
In fact, the profit margin of the enterprise service market is much higher than that of the third-party payment fee, because the opportunity cost of replacing suppliers is more stable than that of ambassadors. However, the domestic market has not yet fully grown up, which is not only the shortage of the current market, but also the future business opportunities. After owning enterprise users, third-party enterprises can not only get the corresponding technical service fee income, but also bring part of the payment business to themselves.
2. Adopting the international standard of ISO2002 message, the degree of standardization has been improved, and the error rate of transaction has been effectively reduced.
1. Big C-end consumer market: Matthew effect in this market is very obvious, and only a few survive in the end. There is basically no suspense in the victory of Alipay and Cai Fu Tong. The strength and share are in the clear. Among the other players, UnionPay’s cloud flash payment is said to have been “amazing” in the past 2017 double-12 period, but whether it can maintain long-term growth and chew a larger share from their mouths is still unknown.
On the basis of social advantages, CFT preempts and cultivates mobile payment habits with high-frequency applications, and accumulates huge C-end users. However, in the face of abundant cross-border business scenarios and payment industry chains, such as bank receipts, international settlement, currency exchange and other links, there is still more room to explore and expand, which are contained in these links. It has great market value to be developed.
At the same time, in the new industry model, Yibao has never stopped exploring. For example, in border trade, supply chain financial services and other areas are also investing in efforts to provide customers with more complete programs and more excellent services.
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