Analysis of third-party payment
1. The roles involved in offline pos consumption
Customer Merchant Acquiring Institution Card Issuing Bank UnionPay People's Bank Acquiring Bank
2. Basic process
Payment process:
The customer swipes the card (debit card); the acquirer uses the POS machine to find the card issuing bank to issue a payment application (with information such as the order amount);
The issuing bank sends back the authentication information; the customer checks the order and enters the password for authorization; the issuing bank processes the payment;
The card issuer sends the payment success information to the acquirer; the acquirer pos requires the customer to sign and print the receipt;
The acquirer transfers the money to the acquirer.
Liquidation process (each liquidation has a fee):
The acquirer finds the issuer for settlement (it takes a long time for a credit card); the issuer settles with the acquirer through UnionPay; the acquirer settles with the merchant.
3. The process of Alipay and large acquirers
1 "Payment
Like the original
2" liquidation
It turns out that it is not cost-effective to go to the bank first, and then go to the inter-bank intermediary (UnionPay).
Now: Alipay is directly connected to various banks, and large accounts are opened in each bank. Alipay itself helps customers and merchants to do liquidation internally. If it is China Merchants Bank account A swiping card to spend to China Bank account B. The way of Alipay is: in China Merchants Bank, account A transfers the money to Alipay's account C1 in China Merchants Bank; in Bank of China, Alipay's account C2 transfers the money to account B; that is, 2 intra-bank transfers + Alipay's internal settlement are used to realize funds liquidation.
3 "Advantages: Avoid inter-bank transfers from being plucked by card issuers, acquirers, and UnionPay (now it is intra-bank transfer, which is equivalent to doing UnionPay's work); fast settlement and good experience (the bank's system is low in efficiency for security reasons. Poor experience); when the amount of self-funding in each bank account is large enough, you can have bargaining power, not only do not pay, but may also make money (for banks, it is equivalent to a large depositor)
4. The necessity of existence
Convenient for customers: You can swipe various bank cards in one place, which is safer and more convenient than carrying a lot of cash
Convenience for merchants: small customers, illegal transactions such as pornography, gambling, drugs, etc., have payment needs, but the bank itself does not provide services for them due to cost considerations. (Why do you have to use pos? In order to facilitate customers to pay)
Convenience for banks: Small customers have the risk of running away from credit card cash, which is not compliant in itself, and it is very troublesome if an accident occurs. Banks are unwilling to take this risk, so they give up this profit and pay it to a third party.
Acquiring institutions are profitable: 1" is to earn handling fees 2" is that the deposited funds (the time difference of settlement or trust guarantee) have liquidity and investment value. 3" When the amount is large enough, it will change everyone's payment habits, and then use the bank at the payment entrance. For example, many people think that Alipay is more reliable than the card of a certain fixed bank. 4. The real payment data of all customers is of great value. The consumption power of different groups of people? Consumption habits? credit information?
5. The role of UnionPay: UnionPay can directly lend and borrow the bank's reserve account in the People's Bank of China, playing the role of inter-bank intermediary and clearing. It is the bridge of interaction between banks. I have been lying down to make money before, but now someone is robbing business.