The one-hundred-billion payment market is connected, and Alipay and UnionPay recognize each other by

2021-12-06 16:57

On the afternoon of December 2nd, Alipay announced through its official WeChat account that Alipay and China UnionPay have achieved mutual recognition of collection code scanning across the country, four months earlier than previously expected.

   Previously, the prospectus of Ant Group showed that the number of Alipay users exceeded 1 billion, the number of merchants exceeded 80 million, and the scale of digital payment transactions in 12 months was 118 trillion yuan. According to media reports, the UnionPay Cloud QuickPass App has more than 400 million users, with payment services covering 94 countries and regions around the world, supporting 30 million domestic merchants and 1.5 million overseas merchants. The mutual recognition of scanning codes between the two parties means that more than 1 billion users have added a payment option, and the payment market with a scale of over one hundred billion is being reshaped.

   On October 2, Alipay disclosed the progress of its interconnection with China UnionPay for the first time. At that time, Alipay and UnionPay only realized mutual recognition by scanning codes in some cities such as Beijing, Tianjin, and Guangzhou, and it is expected to realize mutual recognition nationwide in March 2022.

At the same time, the aforementioned announcement shows that Alipay has opened up cooperation with 28 banks and institutions including ICBC, China Construction Bank, Bank of China, Bank of Communications, China Merchants Bank, CITIC, GF, and MiPay. Users can scan Alipay through the apps of various banks, cloud QuickPass and other institutions. Payment code realizes payment.

   A reporter from Caijing uses the CCB App to scan the Alipay merchant's payment code, and the system shows that the payment can be completed. It is worth noting that scanning the Alipay personal collection code, the system shows that it cannot be recognized. Alipay said that it currently only supports payment by merchants with payment codes that have opened merchant services on the Alipay side, and does not currently support personal payment codes. However, a reporter from Caijing found that the CCB App can scan WeChat personal collection codes for payment.

   In addition, Alipay previously announced the opening of online payment scenarios to UnionPay Cloud QuickPass. Among them, the Taobao platform was the first to open, and 85% of Taobao merchants can support consumers to use cloud QuickPass to complete payments.

   Alipay is not the only three-party payment giant that has announced its opening. On September 30, WeChat took the lead in disclosing the progress of payment interconnection. It is reported that WeChat Pay and UnionPay Cloud QuickPass App have officially realized mutual recognition and scanning of offline barcodes. Users can scan the WeChat payment code through the Cloud QuickPass App to complete payment in provincial capitals across the country. Earlier, Tenpay and UnionPay also jointly promoted cooperation with many banks such as China Construction Bank, Bank of China, Bank of Communications, Ping An, CITIC, etc., and realized the payment function of scanning the WeChat payment code by the mobile banking App.

   Barcode interoperability, WeChat also announced the realization of service interoperability with Cloud QuickPass. Currently, Cloud QuickPass can support top-up services for Q coins, Tencent Video and other scenarios. WeChat Mini Programs will also gradually support Cloud QuickPass payment. The first batch of Mini Program scenarios launched include WeChat Reading, Tencent Video, Maoyan, JD, etc.

   Alipay and WeChat both stated that they will continue to explore and open more scenarios in the future.

"This time, it has expanded from online interconnection to offline scenarios. It can be said to be a leap forward in interconnection and interoperability, which is good for cloud QuickPass and related banks, and saves marketing and promotion resources." Broadcom analyst financial industry senior Analyst Wang Pengbo told a reporter from Caijing.

   CITIC Securities banking analysts also wrote earlier that it is expected that commercial banks and UnionPay will benefit relatively. "Whether it is the'mutual recognition and scanning' of barcodes between offline and head payment institutions, or the jump call of online payment scenarios, it will help UnionPay and commercial banks to intervene in business related to unique scenarios of past payment institutions. App customers The number, frequency and viscosity of use are expected to be improved."

"As for whether the payment acquiring market is facing a greater reshuffle, I think it is too early to discuss." Wang Pengbo emphasized, "Ali and Tencent will not let users lose. The habit and mind of offline scanning users have been developed. In the follow-up, the effect of subsidies alone is certainly not obvious, but it still depends on the market’s response."

   The aforementioned analyst pointed out that payment interconnection has its profound policy background. In September 2019, the Central Bank issued the "FinTech Development Plan (2019-2021)", proposing to promote barcode payment interconnection, research and formulate barcode payment interconnection technology standards, unify barcode payment coding rules, and build barcode payment interconnection. The technical system breaks through the barriers to barcode payment services, and realizes the mutual recognition and scanning of barcode identities of different apps and merchants.

   In the past two years, the central bank and other regulatory agencies have repeatedly mentioned anti-monopoly in the payment field. The Governor of the Central Bank Yi Gang once publicly pointed out that one of the two new trends in payment supervision is to strengthen anti-monopoly and introduce the "Anti-monopoly on Platform Economy" guidelines to promote the open and closed scenarios of large Internet platform companies to fully protect consumer payments. The right to choose.

   In fact, not only the payment field, interconnection is the overall opening of the Internet. On September 9, the relevant business departments of the Ministry of Industry and Information Technology held the "Administrative Guidance Meeting on Blocking Web Site Links". A group of Internet representative companies such as Ali, Tencent, and ByteDance participated in the meeting.

   Since then, Internet companies have made frequent actions in terms of interconnection. On November 29, WeChat released the "Update Statement on the Content Management Standards for WeChat External Links". In peer-to-peer chat scenarios, external links will be directly accessible, and the direct access function of e-commerce external links will be opened on a trial basis in group chat scenarios. . A reporter from Caijing found that after opening the Taobao link in the WeChat App, users can log in to their Taobao account directly and complete the payment through Alipay without having to jump to the Taobao link.

"With the gradual advancement of interconnection and interoperability, barriers between different scenarios and channels are gradually broken. Payment institutions can also incorporate more and more traffic scenarios, channels and service providers into their ecosystems in the future, thereby further "Improve our own business ecology," Wang Pengbo pointed out, "Expanding the user pool and improving our ability to serve merchants and consumers will gradually become a key element for payment institutions to achieve further breakthroughs in their business."