In the face of changes in the international payment market and the rapid attack on domestic Internet payments, Ge Huayong, the chairman of China UnionPay, has been urging for UnionPay products and international business for many times in the past six months.

"Mobile payment is the future development trend has become a consensus. At present, there is no mainstream mobile payment product and a widely accepted mobile payment business model. It may be that all parties involved want to take the lead in their own hands and lack product. Cooperation, standardization of rules and standards, and coordination of business models. As one of the important platforms for the bank card industry, China UnionPay will consistently target platform-based integrated payment service providers." Ge Huayong said.

After more than a year in the new year, Ge Huayong has frequently spoken in the second half of 2015. Behind it is the new layout of UnionPay in internationalization and Internet: expanding overseas business, and announcing cooperation with Apple to launch Apple Pay and Samsung in China. The company announced that it will provide Samsung Pay services and "cloud flash payment" with more than 20 commercial banks.

Behind this layout is a silent, smoke-filled payment market. In the less than one year, the offline shops in the first-tier cities such as Beijing, Shenzhen and Shenzhen have popularized Alipay and WeChat payment QR codes, and even Internet payment in second- and third-tier cities such as Hangzhou, Nanjing and Hefei is underway. Rapid advancement. Compared with UnionPay and bank payment methods, Alipay and WeChat Pay attract many C-side personal customers.

At the same time, a number of banking professionals told the Economic Observer that the central bank issued the "Notice on Improving Personal Bank Account Services to Strengthen Account Management", which has clearly confirmed the electronic accounts. The second and third types of accounts do not have to follow the rules of UnionPay. With UnionPay cards, all rules will be based on accounts, and all the business and rules of UnionPay are based on cards. It is estimated that after three to five years, the central bank will basically acquiesce in the payment of the QR code, and then push for three to five years, the system of the offline bank card will be completely disintegrated. The bank and the UnionPay are tied to a chariot, and may face great survival challenges in the future.

Layout internationalization

According to incomplete statistics, since June 2015, Ge Huayong has made an international voice for UnionPay's international business three times.

In December 2015, Ge Huayong signed a memorandum of cooperation on behalf of UnionPay International and the Russian Federal Tourism Administration in Beijing, agreeing to jointly raise the level of UnionPay card services in the Russian market. In September, Ge Huayong attended the 21st General Assembly of the World Tourism Organization and said that the world has More than 150 countries and regions can use UnionPay cards, covering 26 million merchants and 1.9 million ATMs. Basically, "where Chinese tourists go, where UnionPay cards are used", the next step will be to achieve "where global tourists go." Where is the UnionPay card service?" On June 10, Ge Huayong appeared in Milan, Italy, to provide payment services for global consumers.

Wang Yonghong, director of the Science and Technology Department of the central bank, recently pointed out that China UnionPay has set up three strategic development goals since its launch of the internationalization strategy in 2004. First, the UnionPay card went out. At present, the acceptance network has been extended to 150 countries and regions, and the UnionPay card has been basically implemented globally. Second, the localization of UnionPay's international business. At present, more than 47 million UnionPay cards have been issued in 40 countries and regions, and more and more local cardholders use UnionPay cards locally. Third, the UnionPay standard went out. With the internationalization of the RMB and the implementation of the “One Belt, One Road” national strategy, China UnionPay has become the vanguard of the “financial go-out” strategy, and the Asian payment organization has decided to accept the China UnionPay standard system.

UnionPay's international business is rooted in the domestic market. Liu Wei, deputy general manager of UnionPay Bank's service department, said that as the number of Chinese residents leaving the country continues to increase, the sea-purchase boom continues to heat up. Relevant data show that in 2015, Chinese residents' outbound travel is expected to exceed 120 million, and outbound consumption will reach 1.1 trillion yuan. In 2015, the global consumption of China's Haitao Army will reach 240 billion yuan. Based on the global procurement boom and the continued warming of overseas travel, in response to market demand, UnionPay is working with banks to launch credit cards for overseas travel and Haitao people. With the further expansion of overseas markets, UnionPay's related services have been further improved. On January 7, UnionPay International said that the number of overseas tax refunds for UnionPay cards increased by nearly 2 times in 2015.

Ge Huayong pointed out that in light of the current market environment and future development trends, UnionPay has found a strategic positioning suitable for its own development, which is to "build an open platform-type integrated payment service provider with global influence." To become a global influential payment company, internationalization is an essential part. After 13 years of rapid development, UnionPay has become the second-largest bank card clearing organization in the world with the third largest transaction volume. The internationalization has a certain foundation. In the future, it will continue to accelerate the pace of internationalization and build UnionPay into a global network. Brand". Forced mobile payment However, when UnionPay entered the international business, the domestic payment market has undergone major changes. The POS card swipe mode is encountering a positive attack of "QR code payment". According to a person from UnionPay, the domestic two-dimensional code payment technology was born in the UnionPay laboratory. It was not approved by the regulatory authorities at first, so it was not promoted to the market.

However, UnionPay does not have a promotion method of payment. In the era of mobile payment, it is eroding the offline market of UnionPay. Mobile payment has become an important development trend and a new driving force for innovation, and its usage rate has been growing rapidly for several consecutive years. According to the central bank's payment system operation report, in the third quarter of this year, the country's mobile payment business was 4.5 billion, with an amount of 18 trillion yuan, up 254% and 195% respectively.

In 2015, Alipay and WeChat paid a "two-dimensional code payment" as a weapon, and set off a line to pay the subsidy war, and has achieved certain results. According to the data of Analysys think tank, in the third quarter of 2015, the transaction volume of China's third-party mobile payment market reached 439.14 billion yuan, a growth rate of 26.39%. Among them, Alipay continued to occupy the first place in the mobile payment market with a market share of 71.51%; Tenpay ranked second with a market share of 15.99%. UnionPay's market share is only 0.49%. Under such circumstances, UnionPay and 23 banks issued "Cloud Flash Pay". This function only requires the user to hold a mobile phone with a HCE (host-based card emulation) function, a bank debit card or a credit card, and can apply for and activate the "cloud flash payment card" in the mobile banking app. The user only needs to light up the screen of the mobile phone and is close to the POS machine that supports the flash payment function. After hearing the drip, enter the transaction password, that is, complete the mobile payment, and do not need to present the physical card to swipe when paying, and do not need to connect or open the mobile phone. Bank client.

A person from UnionPay said that UnionPay can cooperate with 23 banks to make "cloud flash payment" because UnionPay is forced by third-party payment, and banks are forced by Internet finance, so they will walk together. Both groups will seize the share of mobile payment, which will help to form a strong advantage and achieve twice the result with half the effort.

UnionPay told the Economic Observer that the user experience is the core competitiveness of mobile payments. Compared with other mobile payment methods, UnionPay "Cloud Flash Pay" is safer and more convenient, and will continue to improve and optimize the "Cloud Flash Pay" experience. It will also attract consumers to become cloud flash payers through large-scale feedback activities. Users, enjoy more convenience and benefits.

The application scenario determines the survival space of UnionPay "Cloud Flash Pay". According to the data of Analysys think tank, WeChat pays 150 million people in the third quarter of 2015, and Alipay has 190 million active people in the third quarter, which is strongly related to the promotion of Alipay and WeChat payment. At present, the overall proportion of NFC mobile phone terminals in the country is only 25%. Among Union's more than 10 million POS terminals, there are only 3 million "flash payment" terminals. As an important part of the development of mobile payment, how to embed various usage scenarios into the "cloud flash payment" platform is the direction that all parties should make long-term efforts. In addition, UnionPay has also entered into cooperation with Apple and Samsung Electronics to launch Apple Pay and Samsung Pay services in China.

However, people from state-owned big banks are not very optimistic about the development of Apple Pay. "I personally think that Apple Pay will not have a big market in China. The mobile payment market will ultimately rely on WeChat payment and Alipay, as well as a level of active APP, plus a large number of user habits, so basically three to five years. The market will be completely changed." The state-owned big banker said, "When there is no Alipay to infiltrate external merchants, our bank has a large number of direct merchants. At present, 90% of merchants' transaction volume payments are through Alipay and WeChat. This kind of third-party payment platform, the bank can directly obtain less than 10% of the merchant's income, I think this is the status quo of the entire banking industry."

Pattern dispute

In fact, the fundamentals of "Cloud Flash Pay", Apple Pay and Alipay, and WeChat Payment are that the former is the "quartet mode" and the latter is the "three-way model." The so-called "quartet mode" is the four types of participating organizations, such as card organization, card issuer, merchant and acquirer. At present, UnionPay, Visa, MasterCard, etc. all adopt the Quartet model; while Alipay, WeChat payment and other third-party payment institutions are in the direct bank The card-opening organization conducts online payment, that is, adopts the "three-party mode."

Pan Jianren, a UnionPay technical expert and chairman of the EMVCo Management Committee, told the Economic Observer that the current "quartet model" has proved to be very successful in global practice. The product development and service of the international card organization itself is based on the "quartet model", including Apple. Mobile payment by Samsung and card organizations also follows the four-party trading model. Lefu Payment believes that the "three-way model" of Internet payment represented by two-dimensional code payment has not been as big as the "four-party model" represented by POS card swiping, and there is no meeting. The signs of paying for the POS machine appear. The reason for this phenomenon is largely due to the fact that the method of two-dimensional code payment has considerable advantages in terms of convenience. However, in terms of security, there are still some natural shortcomings, resulting in relatively safer POS machine point-to-point payment. The model always has a solid market. Despite the rapid development, mobile payment has not yet formed an absolute scale advantage, the habitual thinking of merchants and consumers has not changed, and the POS machine acquiring system accumulated by merchants for many years has formed a large amount of data, and is not willing to give up POS use in the short term. Mobile payment. With the entry of UnionPay and Apple, Samsung, etc., including new mobile payment methods such as NFC near-field payment, it is necessary to play a game with two-dimensional code payment in the field of mobile payment. NFC technology still needs to have a POS machine as a carrier.

UnionPay said that the HCE cloud flash payment issued by UnionPay and the mobile payment that announced the cooperation with Apple Pay and Samsung Pay belong to the cloud flash payment series ("Cloud Flash Pay" as the new sign of China UnionPay mobile payment with non-contact payment technology as the core. , covering NFC, HCE, TSM and Token and other types of payment innovation technology applications; the functions are based on hardware devices to do cloud flash card issue and transaction, the process of air card is the same, and cloud flash card All of them are in the form of tokens (that is, token technology, which is a virtual account that converts bank card related information into electronic tokens) to enhance security. In addition, in addition to Apple, Samsung, cloud flash payment brand will also cooperate with Huawei, Xiaomi, Lenovo, ZTE and other brands of smart phones, there will be more and more products like Apple Pay, Samsung Pay in the future.

Li Xiaofeng, director of the People's Bank of China Financial Information Institute, told the Economic Observer that more commercial banks will join the mobile business of HCE cloud payment this year, gradually forming a counterbalance with non-bank payment institutions. However, for the HCE mobile payment service, the flash payment "small amount of confidential exemption" has not been opened yet, and it is still the old-fashioned mode of each bank's customers. It should be directed to different bank customers and different types of bank cards. The customer chooses to open the card remotely. Whether the bank chooses "cloud flash payment" or Apple Pay, there are many commercial banks standing behind the UnionPay. However, the attitude of the bank is quietly changing.

"Now almost all banks are open to a third-party payment institution, but the banks are not open." The head of the electronic banking department of a joint-stock bank reported to the economic observer.

The above-mentioned state-owned big people believe that online payment has been paid by the third party to occupy most of the market share. In the past two years, the offline market is being seized. It is estimated that three to five years, the central bank will acquiesce to the payment of the QR code, in time, offline. The bank card payment system may be disintegrated by third party payments. A recent bank specializing in retail business suggested that commercial banks, only a dozen large and medium-sized commercial banks, directly docked each other, freeing all costs from each other, at least reducing costs and increasing the success rate of payments. This year, UnionPay itself is both a referee and an athlete. It is difficult to keep up with the response of various banks, but this kind of scheme makes the central bank very contradictory.

Another person from a state-owned bank told the Economic Observer: "It is still tied to a tanker with UnionPay. It may not survive in the future. The second and third class accounts do not need to follow the rules of UnionPay, and no need to use UnionPay. Standard card. ""We are taking advantage of intelligence, cloud and security to accelerate the construction of 'Mobile UnionPay', and speed up the construction of 'Online UnionPay' and 'Cross-border UnionPay' as a company to achieve 'global network, international brand 'The important strategic support for the development vision. Previously, through various cooperation, it has launched a variety of mobile payment products and services such as SWP-SIM, eSE mobile phones and wearable smart payment devices." UnionPay reported to Economic Watch that "We must also see that offline traditional physical card payment is still crucial for the entire payment industry. Traditional card-based payment still has the potential and space for greater innovation. The relevant data shows that the scale of global card-based payment in 2015 is expected. It is about 22.4 trillion US dollars, and the growth rate will still reach 13.3%. It can be seen that from a global perspective, the card base payment market is still developing rapidly.