From B2B To B2C-Fierce Competition In Third-party Payment

Online, April 3, 2012 (Newswire.com) - With the accumulation of the central bank's third-party payment license for some formal third-party payment providers like Alipay and GlobeBill(www.globebill.com) issued over 100, the third-party payment still keeps a strong momentum.

However, behind the prosperous surface, some barbarism also rises for lacking of industry standards. Some fast developing third-party payment companies have been accused of providing false data, ignoring the industry regulation and being bogged down in private lending, the frenzied expansion of last year, a number of third-party payment companies attracted a lot of printing of criticism. After the company's hundreds of contention inevitable comes the verified competition.

As competition becomes fiercer, the repent competition in red and blue sea of third-party payment market is also rising. According to the data of Enfodesk Analysis's China's third party pay market quarter monitoring of 2011, third-party Internet payment market has maintained a rapid growth in four sessions and the annual transaction volume has reached 2.161 trillion RMB.

In the insider's view, at this stage the online payment was just a small branch of its business model. The future e-commerce will penetrate from the traditional B2C to the broader B2B and liquidity management needs in the process is a much valuable area will be regarded more important by the enterprises.

Under this fierce competition, the price war of the third-party payment continues to heat up. "If third-party payment companies continue to attract merchants by price competition, it would damage the interests of many parties. The formal third-party payment companies are unwillingly to try." said a third-party payment company’s employer.

In addition to turn their eyes to new industries and new areas, receipt-accepting business continue to be the focus of fierce competition. Analysis International believes that the threshold of payment-gateway-based electronic payment business is not particularly high, and the homogenization of products is very serious. All types of acquiring business has emerged the "channel" characteristics, that is, all types of receipt-accepting business will be treated only as a channel of capital flows.