Original title: accelerated promotion of barcode payment interconnection
Payment pattern will change in the formulation of relevant technical standards
Source: economic reference
Reporter Wang Zixu Zhang Mo reports from Beijing
Substantial progress has been made in bar code payment interconnection. Recently, China Unicom and a payment agency completed the first business of domestic barcode payment interconnection in the pilot city of Ningbo. Subsequently, UnionPay and TenPay also reached cooperation on the interconnection of barcode payment, and carried out relevant pilot cooperation.
The previous financial technology development plan (2019-2021) issued by the people’s Bank of China clearly proposed to promote the interconnection of bar code payment, and to study and formulate the technical standards for the interconnection of bar code payment. The reporter of economic reference learned from people close to the regulatory level that the relevant standards are in the process of brewing. In terms of the standard landing mode, or in combination with the pilot situation of different modes, we will extract the underlying technology and learn from others.
Industry insiders said that barcode payment interconnection will break the giant’s long-term monopoly in the field of two-dimensional code payment, and the pattern of payment industry will change.
Bar code payment interconnection and ice breaking
Recently, the bar code payment interconnection business officially broke the ice. On December 30, 2019, China Unicom and some pilot Payment institutions piloted the barcode payment interconnection standard based on the account agreement number in Ningbo, and successfully completed the first business under the standard. UnionPay and Tencent’s TenPay company have also recently reached cooperation on the interconnection of barcode payment. The person in charge of wechat payment told the reporter of economic reference that TenPay and UnionPay are carrying out relevant cooperation pilot. It is reported that the two sides are jointly studying the technical scheme of barcode payment interconnection and establishing a comprehensive mutual scanning and mutual recognition barcode payment service network.
In fact, the regulatory authorities have been trying to promote the interconnection of barcode payment. Li Wei, director of the science and Technology Department of the people’s Bank of China, previously said that it would organize commercial banks, Payment institutions, China UnionPay, Internet Union, etc., carry out the verification and application pilot of barcode payment interconnection technology, gradually break through the payment service barriers, and provide people with safer and more convenient payment services.
Zhao Yao, a special researcher of the payment and clearing research center of the Financial Research Institute of the Academy of Social Sciences, said in an interview with the reporter of the economic reference newspaper that bar code payment interconnection refers to the sharing of information between different payment systems (payment service providers), non exclusive provision of payment service network access and payment service products to end users, so that end users can make different payments Select and switch between systems.
Zhao Yao said that generally speaking, the regulatory authorities encourage the interconnection of payment service networks and subjects, which is to force the dominant payment service providers to achieve interconnection, which is an important policy tool for regulators to introduce market competition in the payment service market.
Zheng Wanchun, President of China Minsheng Bank, said earlier that there are more than 400 mobile apps supporting QR code in the domestic market, behind which there are nearly 10 kinds of QR code payment standards that have been and will be online. Some market participants set up a competition barrier through the QR code standard of four-tier system, which leads to the fact that users’ mobile app and merchants’ QR code are usually unable to recognize each other, so users need to Switch the mobile app, which affects the payment experience of consumers.
“After the barcode interconnection, the merchant only needs a QR code to allow the customer to use the app of any payment institution or bank to complete the code scanning payment. And consumers no longer need to open different apps, and can choose payment agencies more freely. ” Said Huang Dazhi, senior researcher of Suning Financial Research Institute.
Regulators promote the development of technical standards
In addition to the accelerated promotion of the pilot project, relevant technical standards for barcode payment interconnection are also under research and development. The development plan of fintech (2019-2021) issued by the central bank clearly proposes to promote the interconnection of bar code payment, study and formulate the technical standards of bar code payment interconnection, unify the bar code payment coding rules, build the bar code payment interconnection technical system, break through the bar code payment service barriers, and realize the mutual recognition and scanning of bar code marks of different apps and merchants.
However, the current pilot UnionPay and China Netcom adopt different barcode payment interconnection modes. It is understood that the network alliance dominates the interconnection and interworking under the four party mode, following an open or relative standard. Any payment institution can scan and recognize each other with other institution codes as long as it accesses according to the protocol. The clearing mode of cooperation between UnionPay and TenPay is a way to integrate the other party into the collection system of their own aggregation. Payment institutions can access UnionPay one by one, but there is no fair standard.
A number of industry insiders told reporters that the technical specifications of China Netcom are more inclusive. The insiders of a payment institution pointed out that the real networking is universal. The payment institutions and merchants can achieve one point of access. UnionPay is just equivalent to exchange. The docking of the two means that merchants have to enter the network separately, which is more troublesome. An industry expert also said that the interconnection mode of UnionPay and wechat is actually the result of the cooperation between the two sides and belongs to the mutual calling interface, while the technology of Internet connection has little impact on the existing payment institutions.
A person close to the regulatory authorities told reporters that the relevant departments are still in the process of studying and preparing the technical standards of barcode payment interconnection, or will combine the pilot situations of different modes to extract the underlying technology and draw on the strengths of all.
Small and medium-sized Payment institutions will face more development space
With the acceleration of barcode payment interconnection, the ecological pattern of payment industry will also change: offline acquirers will share the dividend after the break of traffic monopoly, and many small and medium-sized Payment institutions will usher in more development space.
A payment agency insiders said that before interconnection, bar code payment was basically only Alipay, WeChat and cloud flash payment, and other institutions could only be aggregated. In the future, after interconnection, more Payment institutions can participate according to their own advantages: those with merchant resources can only develop merchants, and those with users can only develop users. Along with the increase of participants, the offline price which was much higher than the online price will also decline, and gradually move closer to the cost price.
Wang Pengbo, a senior analyst in the payment industry at Analysys think tank, said that organizations like Jingdong, Suning and meituan, which have a large user base, want to pay offline. After interconnection, they can save a lot of capital and labor costs in the early stage of infrastructure construction. In the future, the competition for payment scenarios will really enter the era of 2.0, competing for value-added services other than payment.
The acceleration of barcode payment interconnection will also benefit traditional acquirers. The acquirers, such as Tonglian, lakala and accompanying payment, can more easily reach merchants directly. “These institutions have started to lay out b-end value-added services for a long time, and they also have mature payment solutions. Once the private domain traffic originally belonging to the two oligarchs is released, we can see that the market prospect is very promising.” Wang said. However, industry insiders also said that the interconnection of barcode payment is still under exploration. Although positive progress has been made, it cannot be achieved overnight because of the multi-party interests involved.