Editor’s Note: This article comes from the WeChat public account “New Flow Finance” (ID: xinliucaijing), author Xiao Huizhen; 36 氪 authorized to release.This time Tencent really shot, decided to positive PK Ant Financial, rewriting the consumer financial market.A few days ago, Xinliu Finance was informed that Tencent is now incubating a credit payment product “payment” (provisional product name).Following the ant flower buds and Jingdong white strips, “payment” represents the Tencent department reignited the war of credit payment.In the future, when users use WeChat payment, they may use the “payment” to pay first, then extend the time payment during the account period or pay the bill in installments.It is reported that the “payment” is expected to be launched in the fourth quarter of this year, operated by the WeChat payment team, and is currently in the stage of negotiating cooperation with some banks and licensed consumer finance companies.In the future, “dividing” or “micro-credit” will operate through open whitelists and financial institutions such as banks in the form of loan-in-promotion and joint lending.The soon-to-be-released “payment” means that from 2020, the long-term pattern of China’s credit payment is likely to be completely rewritten.External: Challenge the Internet giant Tencent to launch credit payment products, which is undoubtedly a declaration of war to Ant Financial and Jingdong Finance. It is also an influential action for the entire consumer financial market.Throughout the current consumer finance industry, in February 2014, Jingdong launched “White Strip”, and in April 2015, “Ant Flower Garden” was officially launched. Based on the huge ecosystem of Jingdong and Ali, they first tasted the credit payment.dividend.After 4-5 years of development, the flower buds and white strips have already extended from the Ali and JD systems to other scenes.According to public information, as of the end of 2018, the balance of white goods revenue was 34.449 billion yuan; while the loan balance of Huayu had reached 99.2 billion yuan in the first half of 2017.There is no doubt that credit payment products can effectively increase the user’s desire to pay to a certain extent, and at the same time increase the sales volume of the merchants.Take Jingdong as an example. Xu Ling, who is the head of the white strip, has observed the performance of users who have used Jingdong service for 5 months before and after consumption. After using the white strip, the user compares the average monthly consumption order by 52% and the monthly average consumption amount increases.97%.For the credit payment platform, the credit payment service can charge the billing fee and overdue fee of the C-end user on the one hand, and charge the service fee to the B-side merchant on the other hand, thereby increasing the revenue of the platform.Although the credit payment market has long been divided by flowers and white strips, there are still players trying to get a share.A few days ago, the US group also launched a similar “flowering” for the products of the flower garden; Baidu’s Baixin Bank also began testing the virtual credit card and launched the “pay partner”. At this point, the credit payment campaign between the giants officially started.Old players are chasing hard, and the power of newcomers cannot be ignored.Each player has a scale of hundreds of millions of users, as well as a unique ecosystem system, the strength can not be underestimated.With the analysis of licensed goldsmiths, it may be too late for Tencent to enter the market again.”When the user’s instalment payment channel habits have been developed and want to change the market structure, perhaps only by burning more money to fight the interest-free war in order to grab the users, Tencent needs to pay more.”In terms of strength, WeChat’s credit payment products will be the most powerful competitor of Ants.The two rely on WeChat payment and Alipay respectively, and in the current mobile payment market, the two have occupied half of the country.In January of this year, Alipay announced that the number of users worldwide has exceeded 1 billion, including 300 million overseas users and 700 million domestic users.As of November last year, Alipay has more than 650 million active users per month.The number of users of WeChat payment binding bank cards at the end of 2018 has exceeded 800 million.According to the iResearch report, in the first quarter of 2019, the scale of China’s third-party mobile payment transactions reached 55.4 trillion yuan, an increase of 24.7%, of which Alipay accounted for 53.8%, and Tencent Tenpay (including WeChat payment) ranked second.Accounted for 39.9%.If the user is in the consumer payment link and wants to spend the payment or directly install the payment, the first priority will be the WeChat payment and Alipay products.More than 800 million potential users, when WeChat pays to launch “payment”, will definitely be the time when the consumer financial market structure has been rewritten.Internal: Perfecting Tencent’s financial technology ecosystem In fact, from the perspective of Tencent itself, it seems that this credit payment product is urgently needed to stimulate its financial technology business growth.Since the second half of last year, Tencent has independently become a “financial technology” business and has become one of the three main businesses alongside value-added services and online advertising businesses.Tencent seems to be interested in making financial technology one of the main directions for the future.The second quarterly report just released shows that Tencent’s financial technology and corporate services revenue in the second quarter of 2019 increased 37% year-on-year to 22.888 billion yuan.In terms of financial technology services, the number of commercial payment users, the number of merchants, the transaction volume and the income all increased rapidly, which boosted the revenue of this segment.Some analysts believe that in the financial technology field of Tencent, payment has taken an absolute big picture. In addition, other financial businesses have little success.Tencent’s financial technology business will find that Tencent has established four main lines of wealth management, payment, securities and innovative finance, including Li Cai Tong, Tencent Micro Gold, WeChat Payment, QQ Wallet, Tenpay, Tencent Micro Securities, Tencent.Credit Information, Tencent Financial Cloud, Tencent Blockchain, Tencent Credit Card Repayment, Life Insurance, Mobile Phone Recharge and other services.But in the consumer finance business, it seems that there is a lack of a ring.Tencent is currently the most lacking, and is also the most suitable for the growth of financial technology business, it is undoubtedly a consumer financial product.Tencent’s Weizhong Bank has a “credit loan” for its cash-crown ace products, and its own financial management has also launched a “turnaround” for microfinance products.If the development scenario is staged, Tencent does not lack any scenes, because WeChat payment, a natural payment portal, has connected tens of millions of various types of scene merchants, and has gathered a large user scale of over 700 million and has very high frequency transactions.frequency.In this year’s WeChat payment “88 Media Open Day” event, Yan Zhijun, vice president of Tencent’s WeChat business group, revealed that the current average daily transaction volume of WeChat payment exceeded 1 billion times, connecting 50 million individual merchants and merchants.If the current offline payment of 2 billion is estimated, among the 1.3 billion people, the smaller part of the elderly and children are excluded. It is expected that each Chinese will spend 2 times a day.According to the data of WeChat payment of 50 million merchants, it is expected that there will be one individual merchant in every 16 people.On the strength of wind control and the strength of science and technology, Tencent’s early payment of WeChat payment points and Tencent Financial Cloud, which exports scientific and technological capabilities to banks and other institutions, have laid a solid foundation for it.A practitioner close to Tencent admits that Tencent’s internal attempts at consumer finance have not stopped.”Not Tencent did not think about doing white bars and flowers. As early as a few years ago, the FiT team had thought about re-developing virtual credit card products such as white bars and flower beds, and considering Tencent’s huge user base, and in the micro-creditIn the context of the online, this idea was eventually rejected by the regulatory authorities.” In the first half of this year, people familiar with the matter told Xinliu Finance that Tencent had tried to develop mobile phone staging services in the “mobile phone recharge” section of WeChat wallet, and the new sharing technology service by Tencent Investment.(Shenzhen) Co., Ltd. came to operate, but ultimately failed to go online.If this credit payment product comes out, Tencent’s consumer finance layout can be improved, and to a certain extent, it can help WeChat to pay more merchants, ordinary users and transaction volume.From an open perspective, Tencent has added a loan-assisted product that will connect to more banks and licensed consumer finance companies. On the one hand, it will bring more opportunities for banks and other institutions to choose retail assets, and jointly lend,The mutual control of the two sides is also a test of the ability to integrate.The only concern may be that the average amount of WeChat payment pens is smaller than that of Alipay. If users divide their bills, profit will be a big challenge.The new network bank COO Liu Bo has analyzed that the per-person bill of WeChat payment is less than 1/3 of Alipay, and the drop rate is more than 2/3.If WeChat launches credit payment, the user’s demand for installment is not high, and the interest-earning assets are not enough, which is almost equal to 7% of the monthly average transaction amount of net loss credit payment.If the monthly average is 500 billion yuan, the annual loss will exceed 35 billion yuan.It is not easy for an elephant to turn around.Whether Tencent’s credit payment products can break the consumer financial market will of course be verified by time..
WeChat credit products will be online soon, flower and white stripes face rivals