Third-party payment financialization highlights

With the deepening and expansion of third-party payment applications, third-party payment with financial attributes will become an important direction for the development of the industry. At the same time, enterprises with financial payment strength will have good market competitiveness and development potential. The enterprises that currently form large transaction scales in this area mainly include domestic payment companies such as Huihui Tianxia, ​​Alipay, Quick Cash, Tenpay, China UnionPay Online, Yibao Payment, and other domestic third-party payment industry leaders.

Layout Traditional financial management industry Third-party payment Online financing mainly includes internet payment settlement services such as funds, insurance (mainly investment insurance such as life insurance, except property insurance), trusts, bank financing, investment and financing services, and brokerage collections. At present, major domestic third-party payment giants have all obtained fund payment settlement licenses. The release of policies on the one hand helps break through the bottleneck of traditional financial product sales channels, lower operating costs, improve customer stickiness and brand professional image, and accelerate the traditional financial industry e-commerce. Process; also provides favorable conditions for third-party payment companies to expand new markets and profitability, stabilize market share and market position.

Transforming B2B Financial Service Providers Currently, some third-party payment companies in China are gradually expanding their business scope to B2B's corporate liquidity management requirements, in addition to the initial investment and financial management payments, and are committed to becoming supply chain finance providers.

Supply chain finance mainly includes industrial chain payment (credit payment), supply chain factoring and other services. It mainly focuses on third-party payment applications, manages the flow and logistics of upstream and downstream SMEs, and changes the uncontrollable risks of individual companies to supply chain enterprises. The overall controllable risk, through the three-dimensional access to various types of information, will control the risk to the lowest financial services.

Penetration of P2P credits in the supervision of P2P and microfinance funds refers to micro-lending transactions between individuals and individuals. Generally, they need to use the e-commerce platform to help lenders and borrowers establish their lending relationships and complete related transaction procedures. For the general concern about the safety of funds, some P2P credit platforms cooperate with third-party payment platforms that have the People's Bank-accredited qualifications, so that the website funds are completely isolated from user funds and managed separately, and a closed payment environment is formed. The funds were all completed by customers through the third-party payment platform's autonomous operation, avoiding the risk of fund misappropriation. In cases where regulations do not impose mandatory requirements for online loan funds, this type of third-party payment independent hosting is currently the direction of the P2P industry.

Online microfinance refers to the Internet companies and financial institutions issuing loans with the borrower’s credit, and debtors do not need to provide collateral or third-party guarantees. Take Alibaba Microfinance as an example. The loan provided by it does not require collateral. Although the interest is higher than that of the bank, the part with high interest can be repaid with the loan and pays interest on a daily basis. Therefore, the total amount of interest is not very high. The third-party payment, which is also represented by Alipay, serves as the fund supervising party, thus forming a closed system between platform merchants, online small loans and third-party payment instruments, effectively preventing misappropriation of funds.

Third-Party Payment Enterprises Fully Enter Financial Payment Business With the rapid development of current third-party payment, more third-party payment companies will fully enter the financial payment business in the future, committing themselves to Internet financial management and corporate capital acceleration. According to relevant information of CCID Consulting, Remittances, Alipay (including Alibaba Enterprise), and Quick Cash rank among the top three in terms of the scale of third-party financial payment transactions in China, mainly including online financial management, supply chain financial services, P2P, and small The scale of transactions of the loan financing supervision business.