Those who have actually run the payment business understand that the main battlefield of the payment business is often not the payment itself, but whether the payment of the complete business scenario is successful or not, such as the industry positioning and customer audience suitability, business model and revenue model. Whether it is sustainable, whether the hardware and software and regulatory conditions are mature. Among them, NFC near-field payment is a typical case, and its business is still far from being scaled up, but since the day of its birth, it has received a lot of attention, or ambiguity. The reason is that the expected business scenario is large enough to be subversive, and its implementation is greatly limited by hardware technology.
I have had the privilege of participating in various key periods of domestic NFC near-field payments and have played more or less roles in it. I wrote this article because I personally feel that this business has reached a historical breakthrough point, and it is about to enter the moment of “the village of the dark and the other†(not the “first year†that all kinds of giants and media call every year). Therefore, I would like to review the various stages of history from the perspective of “hardware + operation†and appropriately predict the next development, hoping to help the industry's colleagues. In my own life, it is a consistent interest, recording real industry observations and perceptions from the perspective of business operators.
The first phase of NFC payment, with SIM full card as the hardware foundation, hardware and operation all in the operator
A year ago, I left the payment company that I personally participated in, and I realized that the era of operators leading mobile near-field payment has passed.
The reason is actually very simple. When the operator gives up the business model based on SIM full card, it essentially gives up the user. In the harmonious NFC-SWP model, the operator seems to have obtained the understanding of the financial institution, but in fact, the user is actively rejected, and the user's trading scene and trading process are ignorant. I would like to ask, what is the relationship between operators and mobile payments, which are separated from these high-viscosity users?
Aside from all the facts that are not strong, from the perspective of mode, operators are the most powerful and core players in NFC payment. The fundamental reason lies in users. Specifically, there are three points:
1. Only operators have high-viscosity mass mobile phone users. In addition, you can't find users who will contact the operator at least once a month (paying the call). Coupled with the boom in smartphones every 18 months in China, as well as overwhelming SMS and telemarketing, only operators have the possibility to promote NFC mobile payments on a large scale;
2. Only the operator has the healthiest business start-up mode, that is, the mobile phone users who invest in hardware costs and exchange high-rate and low-off-network rates, so that they have sufficient funds to transfer blood to other links in the industry chain and survive the most difficult industries. Infancy;
3. Only near-field payment users (such as NFC) are the loyal users of the operators who “really can rely onâ€. To make remote payment, whether or not they have competed with Alipay, the key is that the user's migration cost is extremely low and cannot be given to the operator's main business. Bring immediate help.
Therefore, when we designed the operator's mobile near-field payment service, we firmly decided to use the SIM full card. The so-called SIM full card means that the user only needs to replace the SIM card without any other modification. The specific scheme includes the initial 2.4G, the mid-term SIM-PASS, and the short-lived full antenna SIM card. Among them, only China Telecom has issued nearly 15 million full-size SIM cards. This is the first stage of domestic mobile near-field payment.
For various reasons, 2.4G failed, SIM-PASS and full-antenna SIM card are still in operation, but gradually unable to adapt to the technical challenges of Apple's iPhone4/5 and other small cards. More deadly, operators are in the process with the central bank. In the process of the UnionPay game, it gradually lost. It announced that the NFC-SWP model is the future direction, and it is no longer inclined to the SIM full card solution in terms of market expectations and resource investment. The turn of the giant directly led to a major loss of the technology research and development card dealer/chip vendor, and it cannot be said that it is a pity. Today, card merchants have basically no ability to innovate better SIM full-card products.
The second phase of NFC payment is based on NFC-SWP technology, the operator controls the hardware, and the UnionPay Bank controls the operation.
What is the so-called international mainstream NFC-SWP model? The technical issues are not discussed here, let's take a look at the user process:
1. First, the user needs to replace an NFC mobile phone, but please note that it is not the mobile phone manufacturer that it claims to have NFC. It must be a customized model approved by the operator. Otherwise, even if you buy it against the model, it probably doesn't work;
2. Secondly, the user needs to replace the NFC-SWP SIM card in the business hall. Not to mention, this card does not look much different from the normal SIM card, much better than the previous SIM-PASS;
3. Next, the user needs to download the operator-specific "mobile Wallet" client. Different operators have different client names, but they are similar, open, register, and use;
4. Next, the user needs to apply for a bank card in the client immediately according to the instructions of the salesperson. Note that it must be your existing bank card. If it is successful, you will see the electronic bank card in the client within 1 minute. If you have to apply for a new bank card, the client also provides the function of submitting user application information, so you can wait;
5, well, it seems that everything is done, how to use it? Wait, what is this "e-cash" that suddenly appears? What is “circle storage� You will listen to the salesperson's sweat and explain it to you. In short, the bank card you applied for is actually not the bank card you are familiar with, but an affiliate wallet, and you can only use this accessory wallet to make the so-called mobile phone consumption. (User: Can I swear?). Moreover, this accessory wallet is not lost without name (oh, then, how do I fill in so much information?), that is to say, the phone is lost, the balance in the wallet is lost, and it can't be found. Where does the money in the affiliated wallet come from? It can only be debited from that particular main bank card, up to a maximum of 1,000 yuan;
6. Ok, I recognize it. Say, where can this be used? "Please go to the merchant POS office that supports UnionPay 'QuickPass Flash Pay'. At present, the country has already rebuilt 3 million units, and the major cities have already supported it." This is good, and it is more reliable than the operators. Wait, look at me for the cashier of the Mao merchants to see the neuropathy? I am not a liar, will you use it in the end, don’t ask me if you don’t...
7, forget it, the cashier can not afford, I can not play around the customer service MM? Just say that business is not good, experience the feeling of God. "I have done your mobile payment service, it is not easy to use!" "Sorry, please contact the issuing bank to ask them how to use the service, we only provide SIM card communication service", "Sorry, please contact the operator first. Ask them how to use the business, we only provide account services"...
8. Finally, congratulations, there is a reason not to lose the mobile phone, and do not change the mobile phone at will, because the affiliated wallet can not be remotely closed, and anyone who can get it can use it directly without a password.
This is the most mainstream mobile near-field payment service in China after the operators have compromised with financial institutions such as UnionPay and banks.
Senior people will come out to clarify that only the first three points are the characteristics of the NFC-SWP model. The following points are the side effects of the PBOC financial IC card business stipulated by the People's Bank of China. Yes, it is. But in fact, because operators are fully compromised in the game with financial institutions, only the financial industry in China has such a large-scale standardized NFC card issuance and acceptance environment. Therefore, if it is out of financial applications, the current NFC near-field payment can be Said basically nothing. This is the second stage of the domestic mobile near-field payment that I want to tell you, and it is currently underway.
At this particular stage, operators have gradually been bypassed, and UnionPay represents the entire financial community, in the pursuit of financial applications on the NFC technology for large-scale application. Its biggest support is: 1 strong support of the People's Bank of China and unified financial standards (the people will soon contact the recent central bank statements, prohibit the QR code, push NFC), and - 2 large-scale deployment "Flash Pay QucikPas" non-contact POS.
However, as the user flow above exposes, this phase has congenital shortcomings. First of all, the strategic compromise of the operator's group headquarters does not mean that the operators of the provinces can agree to invest in real money, silver, and the financial sector. Therefore, we have seen several so-called large-scale biddings, which are small and thunderous, and NFC mobile phones have not been popularized so quickly, so the threshold for users is too high. Second, the central bank is too strong and conservative, especially in The long-term rigidization of PBOC's e-cash business and technical standards has resulted in banks not being able to effectively innovate and launch mobile payment applications that meet user needs and comply with the Internet scenario. In addition, BankPay is far from the level of mobile phones and related technologies, while mobile phones The technical difference between NFC chip payment and traditional card-based payment is very large. The control power of bank-funded UnionPay is extremely limited, which also leads to the inability to make a strong effort in today's industry cultivation period.
In short, this is a special period, a special time window that appears after the giant game. If UnionPay can seize this precious time, then domestic mobile near-field payments are expected to be finalized. If not, then either the NFC model fails completely or it is bound to enter the third phase.
UnionPay has made a lot of efforts, and has not completely relied on cooperation with operators, such as trying to do NFC SD card in the early stage, and then trying to directly cooperate with the early NFC full-end mobile phone manufacturers, and has been pushing the bank's common TSM platform. But as far as I am concerned, it is basically a failure. Objectively, it is because this PBOC standard box has killed the upper limit of business innovation and promotion, making people unable to return to heaven. Here are some examples of the more obvious problems:
1. Flash card problem during consumption: If the electronic cash card (or mobile phone) swipe the card too fast at the POS, there will be a phenomenon that the card has been debited and the merchant pos machine fails to be traded, so the merchant will refuse to provide the user with the goods. In this case, even if the user complains, he can only stop using the card first (or even need to return the card, what should the mobile phone do?), after one month, the card issuing institution confirms the user's loss, can inform the user to process the result, and then replace the user. New card, or counter recovery amount;
2, recharge problem: when using ordinary bank IC card to recharge its subsidiary wallet "electronic cash", can only be on the bank counter or a specific ATM machine; if you use the NFC mode of financial electronic cash, you can use the client to "air recharge" ", but usually it can only be transferred from the master account card of its subordinates, and cannot be transferred from the user's other cards of the Bank or other bank cards. At present, the central bank is also pursuing the so-called “non-designated accounts across the lineâ€, but the progress is limited. Moreover, the entire recharge process requires multiple round trips of information interaction, especially the response of the chip hardware, and the process is long. According to the existing mobile internet speed conditions in China, 30s is a reasonable estimate, except for poor customer experience. In addition, it is inevitably filled with all kinds of unilateral accounts and unbalanced accounts, which brings great troubles to the liquidation, and the bank is a meticulous institution that pursues accounts, so it adds a lot of troubles to internal finance and risk management;
3. Customer complaints: When a customer consults a card issuer about the use of an electronic cash card, the card issuer is powerless. In most cases, it does not know what the customer actually did, because usually the merchant has not uploaded the transaction. However, it is clear from the rules that the accounting information in the card issuance system shall prevail. Under normal circumstances, customers can only ask the service outlets to elaborate the situation, and check the transaction record of the electronic cash card on-site through the card reader/POS machine.
I think that the second stage has already come to an end, and the overall situation is not optimistic, but there is still a glimmer of life, which lies in two breakthrough points:
1. A financial payment company and the innovative payment business I am building. This is the only company in China that can issue PBOC electronic cash cards in addition to banks. Naturally, it is also carrying the path of the pathfinder of financial IC card reform and innovation. Moreover, it is more advantageous than banks to issue unregistered, Pure electronic cash card. We took full advantage of this policy advantage and made bold breakthroughs. We have jointly designed a customer-centric mobile payment service with NFC mobile phone manufacturers to “open up available, real-time inter-bank recharge and query information at any timeâ€. Under the framework of PBOC, Try to make the customer experience as extreme as possible and see what the market is all about. If the test is successful, it is believed that the central bank, UnionPay and other banks can be provided with a reference model for business innovation. If it still doesn't work, then I personally think that the NFC application of PBOC electronic cash is difficult to continue. Of course, for various reasons, at present, our products still have a lot of imperfections. By the way, I feel that the internal innovation is too difficult, tears are awkward.....
2. The penetration of financial services into public transportation, creating a truly irreplaceable giant in the NFC acceptance market. As mentioned above, the Flash Pay POS environment is the only large-scale non-contact NFC acceptance environment in China and is standardized. The second place is the bus application (the third is the campus card, huh, huh, in fact, these two areas worked in telecommunications in the past, and eventually died on the beach), and relatively speaking, the non-contact card of the bus and subway It is more "just needed" than consumer shopping. At this stage, it also coincides with the climax of urbanization construction and smart city transformation. The proposal of “national unified public transportation application†has been repeatedly mentioned, and some provinces have begun to integrate and merge in the areas under their jurisdiction. At present, many parties are competing for this "unified" core operational role. Relatively speaking, financial groups still have certain advantages, at least they can be required to use or be compatible with financial standards. If it succeeds, the financial standard NFC acceptance environment will be in an invincible position. Even if it is still doing so poorly in issuing cards, there will be enough time to update it. In addition to public transportation, there are other areas to consider, such as the vegetable market, taxis, fast food restaurants, vending machines, etc., which are actually better to do, but the strategic significance is not as big as public transportation. The central bank also attaches great importance to this, and even introduced the PBOC3.0 technical standard for this update. But I have reservations about this standard, because it is too complicated, it is completely the idea of ​​technology to rule the world, and it does not consider whether the user accepts it.
The third phase of NFC payment, with NFC full-terminal mobile phone as the typical hardware mode, the operation right is jointly led by mobile phone manufacturers and application providers, and gradually opened up.
Ok, let's talk about the third stage, which is the title of this article, the future of what I want to say, and I think it will come soon.
First of all, why is there a third stage? The above is not to say that the second phase is not over yet, is it ending?
The world is so wonderful.
Domestic mobile near-field payment has always been a game for the giants. Whether it is operators or finance, they are super-massive and super-powerful real-world organizations. They set rules to “allow†users how to use mobile payment, but the result is The user is not happy, "I can't afford it, I can't afford it?"
The investment was huge and the results were very bleak, but the side effects were very interesting. The most important thing is to teach and fool a lot of mobile phone manufacturers to transform NFC. Different from the star concept machine of the past few years, only domestically, some mobile phone manufacturers with strong brand awareness and good profit margins have started to do NFC, such as OPPO, Meizu, Millet and so on.
At the beginning, it will naturally be affected by the customization of operators and the cooperation of UnionPay Bank. As mobile phone manufacturers gradually understand and master the NFC business, they will gradually discover that the world can be more beautiful. As I have always said, payment is only a means, but a key link to achieve the goal. The essence of the operator's mobile near-field payment service is to "improve the viscosity and high added value of the communication service", and UnionPay Bank makes mobile near-field payment. The essence of the business is to "increasing card issuance and improving card activity". Mobile phone manufacturers will soon find their own positioning. NFC is for "mobile phone sales more, customers are more loyal, value-added services are more powerful, brand value is more High, in short, if the NFC payment business can be done well, the mobile phone main business can develop better, so what is the cost of paying for the district? Moreover, since the chip is mine, the customer is mine, the brand is mine, then the business form and business model must be based on me!
Of course, most mobile phone manufacturers have not yet reached this stage, especially the domestic mobile phone manufacturers. After all, they have been used to bullying. Although they have made a fortune, they still listen to the giants in the general direction. However, this is another trend. Brand-oriented companies such as Xiaomi and OPPO will inevitably evolve. In particular, it is rumored that the international big brother A company has already brewed the next generation of products according to this model. Once launched, it will be a complete subversion of the first two phases (especially for operators), and the third phase will be officially announced. Even if it’s a cool date, it’s okay, but it’s a delay, and it’s still unstoppable.
In the third phase, the most obvious feature is that mobile phone manufacturers themselves will directly act as the core of mobile payment operations, and various mobile payment applications have a fair and equitable opportunity to participate. Compared with the first two phases, the mobile payment application of the operator and the PBOC application of UnionPay Bank will only become one of the optional applications, and there may still be a first-mover advantage, but it will no longer be the only one in any form.
In the third stage, due to the unevenness of mobile phone manufacturers, the standard of operating platform will be confused, which will cause difficulties in NFC application adaptation, which will cause disputes in the offline NFC acceptance environment. According to historical conventions, platform integrators or industry alliances will gradually emerge, and a large number of mobile phone manufacturers will jointly develop a relatively standardized NFC operation platform to help mobile phone manufacturers join the feast and gain profits at the least cost. Similar to the current APP store's own app store and the APP store that is common to the platform. Of course, mobile phone manufacturers and manufacturers that focus on brand operation will have the ability to monopolize their own fields. The advantages of mobile phone manufacturers with payment licenses are more obvious.
In the third phase, NFC application providers with offline influence will be the most advantageous, and the user's aggregation and O2O mode can be popularized with minimal cost. The NFC online application will be the absolute winner, and the advantages are obvious compared to offline applications such as PBOC. Gradually, the best-performing NFC application provider may become one of the new mobile payment kings.
In the third stage, users and merchants can truly gradually familiarize themselves with and accept mobile payment, and hand it over to the market to solve security, credibility, and complaints. The existing TSM platform model will inevitably have major adjustment changes.
In the third phase, NFC and SE chip manufacturers will have a lot to offer. I hope that domestic chip manufacturers can participate in this feast in time. Nowadays, the mobile payment card merchants who are half-baked in the sky are likely to suffer major setbacks.
In the third stage, the issue of supervision will inevitably appear from time to time. The typical official is the Ministry of Industry and Information Technology and the central bank. I believe that some fast-growing mobile phone giants have the ability to cope with some twists and turns. After all, the user is king.
In the third stage, the reasonable expectation was officially launched in 2015, and it took 2-3 years to basically spread.
In the third phase, it may not only be an NFC phone, but also other hardware models, as well as other wearable devices. But NFC's hard-earned growth over the years will bring a more acceptable development environment for these more innovations.
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