getUrls?link=f8d8c00fbe85341f5e566073c8336f15 - Byte enters the game, Internet giants fight payment again

文|李佳师

Shanghai Stock Exchange Science and Technology Innovation Board announced that it will review the listing of Ant Group on September 18, and it has accepted JD on September 11 The IPO application of Digital Science on the Science and Technology Innovation Board, these pieces of news have made the recent war of words among Internet giants over payment very lively. Just a few days ago, ByteDance obtained a third-party payment license and announced its entry into third-party payment. Why do Internet giants do third-party payment? Are there any chances for the ByteDance, which has only come in now, to do payment? In the future, what are the innovative opportunities for mobile payment?

Internet giants do payment to”turn stones into gold”

From Alibaba, Tencent, Baidu, Jingdong to Meituan, Didi, etc., every Internet giant has made payments. Bytedance is now jumping into the game, hoping to join the mobile payment war.

Why do Internet giants want to do payment?”For every company that is deeply involved in the digital economy in the future, the layout of mobile payment is needed. Payment opens up funding channels and allows funds to flow smoothly among various businesses. This not only improves the efficiency of business collaboration, but also helps The value of each business is conducive to the measurement and distribution of results.” Pu Songtao, director of the Software Research Office of the Institute of Information Technology and Software Industry, CCID Think Tank, said in an interview with a reporter from China Electronics News that with the development of the digital economy, the future In the industrial development system, the most important thing is the flow of data, and the flow of funds is accompanied by the flow of data. And payment is to create a channel for capital flow, similar to the Internet.

Now China’s mobile payment has entered a booming period of development. According to data from the China Clearing and Payment Association, as of March 2020, the number of online payment users in my country was 768 million, a year-on-year increase of 28%, accounting for 85.0%of the total netizens; the number of mobile online payment users was 765 million, a year-on-year increase of 31.2%, accounting for mobile netizens The ratio is 85.3%. In 2019, the scale of online payment transactions reached 251.2 trillion, of which mobile payments were 226.2 trillion and Internet payments were 25 trillion. Mobile payments have entered an explosive period starting in 2017.

Then we will look at the myth of the Ant Group’s wealth creation to better understand. Alibaba The predecessor of the Ant Group is Alipay. It was established in 2004 and now has 700 million users. It took 16 years for the Ant Group to , Tells a story of”turning stones into gold”, which not only solved the payment problem of e-commerce platforms, but also developed financial technology, created small and micro financial services, and opened up new business spaces.

On August 25, Ant Group submitted a prospectus to the Shanghai Stock Exchange Science and Technology Innovation Board and the Hong Kong Stock Exchange. The prospectus documents show that in 2019, Ant Group achieved a net profit of 18.07 billion yuan. In the first half of this year, Ant Group The group achieved revenue of 72.528 billion yuan and net profit of 21.923 billion yuan. According to analysts, Ant Group’s listing on the Hong Kong Stock Exchange and Shanghai Stock Exchange is likely to set the world’s largest IPO. Through small and micro financial services, Alibaba has hatched “ant” into “elephant”, Ma Yun and his team are expected to build the second place after Alibaba A trillion-level enterprise.

Following the”Ant Group”, another one that is expected to replicate the Alipay story is Tencent Tenpay. Tencent Tenpay was established in 2005 and currently ranks second in China’s mobile payment market. According to the data, as of the fourth quarter of 2019, Alipay’s mobile payment market share was 55.10%; ranked second is Tencent Tenpay (including WeChat Pay), currently 38.9%. Although the war of words between Alipay and WeChat Pay continues, no matter who it is, it is a decisive player in China’s mobile payment market.

The two payment licenses of”Ant and Tencent Alipay and Tenpay account for more than 90%of the domestic The core element of the third-party payment market share is its popular products and perfect Internet ecology.” Wu Tong, deputy director of the CECBC Blockchain Committee of the Ministry of Commerce and Dean of the School of Digital Economy”The reporter said:”However, in recent years, the increase in the third-party payment market has been relatively limited, and the industry has also become saturated. Now doing third-party payment is in line with Ant, Tencent‘s macro environment and industry conditions at that time were very different.”

Although Ali, Tencent The third-party payment business can be”full of puffs”, but not everyone can learn this business well. At present, the head pattern of third-party payment companies has basically taken shape. According to the official website of the People’s Bank of China, there are currently 237 companies with payment licenses, and 34 third-party payment companies had their licenses cancelled. According to Liu Xiaochun, deputy dean of the Shanghai New Finance Research Institute, recently said:”As far as I know, the payment services of third-party payment institutions in China are not profitable, or even lose money.”

“From the current payment In terms of the value of the license, the focus is not on who has obtained the payment license, but on the convenience of payment channels and richness of payment scenarios.” APUS Marketing Director Wang Yongsheng said in an interview with reporters that from the current perspective, Internet companies basically have their own Payment licenses, such as Ali, Tencent, Baidu, Jingdong, Meituan, etc., but their payment scenarios are highly homogenized, resulting in fierce competition. Moreover, at present, not only Internet companies, but also payment channel companies and tripartite settlement companies are participating in the competition for payment licenses, and their subdivisions are already relatively vertical and mature.

Bytes Incoming Third-Party Payment

Since the People’s Bank of China did not issue a new third-party payment license in April 2015, the new third-party payment Of companies can only”change hands” from other companies, so this information aroused concern.

On August 28, Wuhan Hezhong Yibao Technology Co., Ltd. (hereinafter referred to as”Hezhong Yibao”) had a business change:the original shareholder Zhongfa Industry (Group) Co., Ltd. withdrew, and Tianjin Tongrong E-commerce Co., Ltd. holds 100%of the shares, and the actual controller of the company is the founder of Bytedance Zhang Yiming. The news that BYTE entered third-party payment has attracted attention from all walks of life, and some people even commented that Bytedance may copy another”Ant Financial Service“.

Why ByteDance has responded enthusiastically to the payment license market because ByteDance has always been”beating” vigorously. According to data from CB Insights, a startup tracking agency, Bytedance has a valuation of 140 billion U.S. dollars, and is the world’s number one startup company. The second place is Didi, the third is SpaceX under Musk. From its lower product Douyin to its overseas version of Tik Tok, many applications of ByteDance are invincible and quickly won a large number of users. Since this year it announced the establishment of an e-commerce team, the layout from information flow to capital flow, the establishment of a closed business loop, and the improvement of all links have become its inevitable choice.

“Third-party payment is conducive to perfecting Bytedance’s commercial closed loop, enriching user products, and comprehensively improving its profitability. Bytedance has formed a strong industry competitiveness in terms of content and user attention. But it lacks a convenient channel for monetization. This is a common problem faced by global digital platform companies. The Libra Association, composed of more than 20 global top-tier digital giants, plans to plan the global stable currency Libra, and one of its original intentions is to solve this problem.” Wu Tong believes that the central bank will no longer accept applications for new third-party payment licenses, so the license itself is also a valuable”shell resource”, coupled with the recent forced sale of TikTok, which has overshadowed the rapid growth of Bytedance. Therefore, seeking to become a stronger system organization and entering the financial field is a more pragmatic path.

In fact, ByteDance has already bid for a digital bank license in Singapore in June this year. In addition to third-party payment, ByteDance has now obtained a small loan license, an insurance brokerage license, and a securities investment consultant. Waiting for the financial license, hoping to do more in the financial circuit,”Sima Heart” has become clear.

Can ByteDance’s payment finance business be done? This needs to be viewed from the economic foundation, channel foundation, and traffic foundation. Wu Tong believes:“At the economic level, Byte’s Toutiao and Douyin span> has achieved more profits, and it has the foundation to compete with Taobao and Pinduoduo. At the channel level, BYTE can also promote its own home appliances under the short video channel, which has certain channel advantages. At the payment level, BYTE The huge traffic entrance and the increasingly rich ecology provide basic conditions for payment. Therefore, the operation of Bytedance in the field of e-commerce and payment should be able to be done.”

The research report of CITIC Securities gives The conclusion is that Jiediao obtains a third-party payment license through Hezhong Yibao, which will help to carry out payment business in the body, and gradually accumulate financial account foundation, customer foundation and data foundation. The biggest advantage of information distribution represented by short videos is customer stickiness, but there are fewer C-side collection and payment scenarios for financial development.

“The advantage of byte is that it can accurately reach users through the recommendation system, but from the point of view of goods, it is more like the value of advertising. As for whether consumers pay, in addition to arousing consumer interest In addition, there are still many challenges to be faced in how to ensure product quality, how to ensure efficient logistics, and how to do after-sales service.” Pu Songtao believes.

“The payment license for Toutiao this time is not enough to form a disruptive force in the industry. It is more to satisfy the closed ecological loop within Toutiao,” said Yongsheng Wang.

Some people in the industry said that unlike Didi, Meituan, Ali, etc., although Byte has a large amount of traffic and users on the C-side, it has fewer payment scenarios. From the current point of view, the byte bar can be made, but it is impossible to build another Ant Financial Service in the short term.

Future changes in payment

China Securities believes that the development of third-party payment in the United States has gone through four stages:the first stage (1960s~ 1990s):The vigorous development of offline commercial consumption such as retail and service industries has driven the development of the bank card industry. The second stage (1990s~2010s):The rise of the e-commerce industry increased the demand for Internet payment, and the third-party payment industry emerged and expanded rapidly. The third stage (2010s~2020s):With the increase in the penetration rate of smart phones and the development of non-cash payment, third-party payment companies have begun to turn their attention to the field of mobile payment. The fourth stage (2020s~future):Third-party payment companies begin to develop from a single payment platform to a comprehensive service provider. The rise of Generation Z also places new demands on mobile payments.

What kind of payment does Gen Z need? What are the new variables of mobile payment in the future? It’s hard to predict now. Just like the change of e-commerce model, Ali and Jingdong seem to have seen the ceiling. Pinduoduo came out, and after it seemed to have exhausted all kinds of marketing models, it came out live broadcast to bring goods, there will always be unexpected sudden changes that subvert the original model.

Pu Songtao believes that the future of Bytedance Finance does not necessarily copy Ali and Tencent. From the perspective of models, WeChat Pay and Alipay have achieved great success, not only in the field of QR code payment for merchants, but also around their own business ecology to continuously expand the payment application ecosystem. For example, Alipay is not only the payment platform of Taobao e-commerce, but also Alibaba is a series of payment methods for people’s livelihood services and business processing. For Alibaba, Ant Financial, with its mobile payment business as its core, is an important infrastructure for its various business development. For Byte, it should find a promotion and application model that is more in line with its own business system.

Whether it is Ali or Tencent, they are all brought about by their very successful Internet applications. The development of payment finally turned payment into a new infrastructure. So in the future, what is the real application of the 5G era? Wang Yongsheng believes that Ali and Tencent form industry barriers based on the mobile ecosystem of 3G and 4G. Byte’s Douyin belongs to 5G. Being able to explore a new form of active e-commerce in the 5G era may be a new opportunity for change.

Wang Yongsheng further explained that now live broadcast e-commerce is active consumption, and Taobao e-commerce is passive consumption. If Byte goes further in big data and recommendation, it can understand what users need in advance, and recommend anchors and goods of interest to users, then it may subvert today’s e-commerce model. The formation of a precise e-commerce model of”big data recommendation + live broadcast + e-commerce” is the true value point of Byte.

In addition to 5G new applications, the construction of a payment system based on legal digital currency may be the next breakthrough direction. Wu Tong believes that the innovation of the legal digital currency system may be the future direction of financial innovation.

The research report of Huachuang Securities revealed that the central bank’s digital currency application scenarios are rapidly expanding. Internet vendors including Alipay, Meituan, Didi, Station B, ByteDance and other Internet vendors have all started with the central bank’s digital currency project bank. Cooperation, other high-frequency usage scenarios are expected to be quickly accessed in the future.