The current state of the Internet payment industry

Internet payment refers to the customer for the purchase of specific goods or services. China’s Internet payment business has stepped into a period of standardized development, the transaction scale reached 54.25 trillion yuan in 2019, and also initially formed a perfect multi-level supervision and monitoring system, the following is an analysis of the current situation of the Internet payment industry.

Payment is the breakthrough point for Internet companies to penetrate into the financial sector. Analysis of the Internet payment industry points out that China’s non-bank payment has been developing rapidly since 2013, which is also known as the first year of Internet finance. Since then, various payment institutions have emerged, the medium, channels and technology of payment have rapidly changed, payment application scenarios have been enriched, user experience has been significantly improved, and transaction scale has grown rapidly.

In 2018, there are 11 provinces and cities in China with the number of high net worth individuals exceeding 50,000, namely Guangdong, Shanghai, Beijing, Jiangsu, Zhejiang, Shandong, Sichuan, Hubei, Fujian, Tianjin and Liaoning, of which six provinces and cities (Guangdong, Shanghai, Beijing, Jiangsu, Zhejiang and Shandong) are the first to exceed 100,000. The current state of the Internet payment industry points out that the number of high net worth individuals in all 23 provinces and cities exceeds 20,000, with a more balanced distribution of wealth between regions.

At the beginning of 2019, policies such as “strong regulation”, “handing over provisions” and “breaking direct connection” have been implemented one after another, and the gray areas of the industry have been broken one by one, and non-bank payments have entered a new phase of transformation and development. This report analyzes the development of NBFC payments, and the cooperation model and discourse between banks and payment institutions will change as a result. This report analyzes the latest development of non-bank payments and the diversion of banking business, and discusses the impact of the new policy environment on payment institutions and the banking industry.

As of 2019, the scale of integrated payment transactions for Internet payments in China grew to RMB 218.9 trillion, up 68% year-on-year. It is preliminarily estimated that the scale of China’s comprehensive Internet payment transactions will reach about 31.24 billion yuan in 2020. And it is predicted that in 2022 China’s Internet payment integrated payment transaction scale will be close to 550 trillion yuan.

In 20202, China’s logistics industry will show two major development status: smart logistics is emerging. Big data as a national strategy, the “Thirteenth Five-Year Plan” period will be supported by the policy focus, after the General Office of the State Council issued a number of opinions on the use of big data to strengthen the service and supervision of market entities, requiring the promotion of big data applications at the government level. Internet payment industry status pointed out that the logistics industry and other needs, the big data industry ushered in an average annual growth rate of more than 100%, the market size will reach tens of billions of levels, based on the Internet of Things big data wisdom logistics will be the development direction of modern logistics.

Green logistics has emerged. Logistics industry is a major energy consumer, especially in recent years, “haze” deep, green and low-carbon development of the logistics industry is very urgent, and with the great development of e-commerce, take-out industry, courier, take-out packaging caused by environmental pollution problems more serious. Efforts to reduce the resource and environmental burden of logistics operations, taking into account their own development and the requirements of ecological civilization has become a necessary option for enterprises seeking sustainable development.

Internet third-party payment trading platform based on the continuous development of network technology, to achieve the convenience of transactions while bringing great convenience to the lives of the majority of people. Once it can achieve the suppression of risks, it can become an important engine of China’s economic growth.

At present, the financial third-party payment market faces problems such as low access threshold, high transaction risks and uneven credit levels, but through the necessary methods, all can be achieved to a certain extent. A perfect supervision system can be established under the premise of continuous optimization of hardware and software, while ensuring the correct operation of supervisors and operators, and ultimately enhancing consumers’ awareness of risk avoidance, in order to truly achieve a thorough Market optimization, to achieve the real promotion of Internet finance to today’s social economy, the above is the analysis of the current situation of the Internet payment industry all the content.

Under the conditions of using the services of third-party payment institutions, there are obvious boundaries between the clientele served by payment institutions with an ecosystem and independent payment institutions. On the one hand, because they have a stronger voice and higher profit margins within the system, payment institutions with an ecosystem are usually more willing to serve merchants within the system and do not have a strong desire to tap customers outside the ecosystem. On the other hand, for some enterprises, the large retail platforms behind ecological payment institutions are a competitive threat to them, and the use of payment services associated with ecological platforms may cause them to worry about commercial data leakage, so they prefer to choose independent payment institutions. Independent payment institutions, represented by EproPay, are more purely positioned, have a stronger willingness to acquire customers, are willing to provide more customized service solutions, and continue to improve their service levels in a more competitive market environment.

Although independent third-party payment institutions are not supported by large commercial ecosystems, they have a higher acceptance and broader development space outside the giant ecosystem. As payment service providers, they need to operate lean, find fast-growing industries and opportunities, acquire customers to enhance their scale, and at the same time reduce the cost of customized services through the construction of payment midpoints. As a diversified service provider that accompanies the growth of enterprises after value upgrade, it can make efforts in supply chain service, supply chain finance and B-side service in overseas market to meet customers’ needs and improve its own profitability at the same time.

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