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What is the impact of electronic payments on card organizati

Time:2018-08-15 / Popularity:

Compared with daily cash payment, electronic payment as a safety, convenience, traceability and other characteristics, has fully infiltrated the daily life of the people, everyone commonly used UnionPay card card shopping, is a specific form of electronic payment.
As the only bank card organization in China, UnionPay shoulders the historical mission of the domestic banking individual payment network, covering the world and competing with VISA, MasterCard and other international organizations. As the hub of the Chinese payment industry, its own business has been electronic payment since the first day of its birth. Therefore, electronic payment itself is the basis of UnionPay's business. Every payment business of UnionPay is electronic payment. Therefore, strictly speaking, there is no obvious impact of electronic payment on UnionPay.
However, in recent years, other forms of electronic payments, such as mobile payments, have developed rapidly, not only greatly reducing the use of cash payments in the society, but also replacing Bankcard payments based on online general-purpose. It has brought a shock to the UnionPay, which is mainly based on bank cards. The specific performance is:
Mobile payments drive payment behavior
The most typical feature of mobile payments is the use of mobile phones as payment media, and bank cards are virtualized into mobile phones. When the payment is initiated, the UnionPay card is no longer required, and the payment is completed directly through the mobile phone to complete the security certification. Therefore, with the rapid development of mobile payments, the growth rate of UnionPay physical cards has rapidly declined. In particular, in the past two years, some rural areas have also seen a direct upgrade from cash payments to mobile payments, across the bank card payment phase.
With the Advancement of Internet technology and the development of mobile payments, the People's Bank of China has also introduced systems and policies related to II/III accounts, making it possible for banks to no longer issue entity cards for customers. The non-card payment also further affected the acceptance market. The traditional financial POS machine based on strong security certification began to appear to be replaced by ordinary cash collection tools. The B-end payment entrance began to integrate into the merchant cash collection system and tend to be unified. This will further change the payment industry. Chain market.
Mobile payments promote accountization of payment behavior
As a bank card organization, UnionPay has a bank card brand that begins with "62". However, in the process of mobile payment, it is possible to bypass the UnionPay brand in the payment process and bind the payment account directly to the bank account to complete identity authentication and transfer of funds. And UnionPay does not have the account itself, this will bring certain challenge to UnionPay basic business model.
Mobile payments are disordered to create risk aggregation
According to the special requirements of the global payment industry and financial risk management, the payment industry forms different roles and business division such as issuing agencies(account agencies), liquidation organizations, receipt agencies, and merchants. However, in recent years, some mobile payment participants have combined three roles: "account organization, liquidation organization, and receipt agency." Some organizations even have four roles in one, and the funds in the payment account are circulating in the body and become "second currency." Caused financial risks to accumulate. At the same time, due to UnionPay's strict compliance management system, it has been subject to low-dimensional competition, which has brought a great impact on the traditional card organization market represented by UnionPay.
Of course, we are also pleased to see that traditional card organizations are also actively embracing these new changes. Card organizations such as UnionPay and VISA have also worked hard on various innovative businesses including mobile payments over the years. Emerging payment methods such as mobile payments are only one way of electronic payments. As regulatory policies are further clarified and clarified, under the same basic platform under the same rules, electronic payment services are carried out in accordance with the same rules. Then the card organization represented by UnionPay and VISA will face no impact but will develop again.