As the scale of users continues to increase, the scenarios supported by electronic payment are becoming more and more diverse. Accumulating a large amount of consumption scenario data has led to the rise of consumption data analysis applications. It not only deepens membership management but also accelerates the digital transformation and development of merchants.
In the past two years, due to the impact of the COVID-19 epidemic, in order to avoid the risk of exposure to the epidemic, people’s acceptance of non-cash payments has increased significantly, and the electronic payment market has also grown rapidly. According to statistics from the Financial Regulatory Commission in October 2022, the number of domestic electronic payment users reached 20.77 million , a full increase of more than 5 million users over the same period a year ago .
The top 3 players in the market are highly concentrated in the number of users of electric bills, namely Jiekou Payment, All-in-One Card, and Full Payment, with a total of more than 13 million users. Among them, Full Payment is a new entrant, with strong channel resources and membership base, which has exceeded With 2 million users, there is still a lot of growth potential in the future. After many years of market operation, Jiekou Payment and One Card have exceeded 5.8 million and 5.3 million users respectively.
The two operators are expected to reach 6 million in 2023. Although other players are relatively small, Easy Card Company has 1.95 million electronic payment users, Yushan Bank has 1.66 million users, and Quanying Payment, which will enter the market in 2022, also has 900,000 users.
The more users and cooperative merchants, the more consumer groups are covered, and the in-depth understanding of consumers
Electronic payment is an industry with economies of scale. It has not reached a certain scale of operation. Not only is the number of users limited, but it is also difficult to attract merchants to cooperate. In order to expand the scale of users, various home appliance sub-businesses invest a lot of money to attract consumers by means of subsidies and feedback. , or attract merchants to cooperate with lower handling fees.
Now, the two major electronic payment brands have reached more than 5 million users, and the number of cooperative merchants and payment bases has also increased significantly. Taking Yicard as an example, there are about 410,000 payment bases, and Jiekou has about 300,000 payment bases. The scene supported by electronic payment It is also more diverse, not only for physical retail and commercial stalls, but also for parking, taxes, utilities and other living expenses.
The increase in the number of electronic payment users, especially the addition of full payment, has brought middle-aged, elderly, and female mothers-in-law who used to buy in supermarkets into the electronic payment market, covering more age groups and gender consumer groups; and the increase in payment bases, in addition to The most direct way is to increase consumers’ willingness to use electronic payment, and it also deepens the understanding of each electronic payment user’s consumption behavior from more payment aspects.
For example, in the past, electronic payment was mainly based on physical channels. Take supermarkets as an example. In the past, it was only seen that a certain user often bought coffee and bread at supermarkets. From the consumption data of more payment sites, it is possible to see that the user I also often go to gas stations to refuel, pay fixed car fuel fees, parking fees, and help children pay school fees, etc. Through these transaction data, we can identify the user as a car driver, have a family and raise children, etc., and have a deeper understanding of the profile of consumers .
Deepen membership management with data analysis and provide merchants with precise marketing services
After the number of users reaches a certain scale, e-commerce operators such as One Card and Jiekou Payment began to adjust the focus of their operations. In the past, they mainly focused on expanding the size of their members. Now they have changed to more in-depth management of members, using a large amount of multi-faceted consumption data.
To accurately grasp the user’s consumption preferences, provide differentiated subsidies according to user needs, and at the same time, based on a more accurate understanding of consumers’ appearance, provide precise marketing services, lock consumer groups according to merchants, and assist in delivering preferential messages to target users to increase conversion rates .
Zheng Kaiyin, who was the founder and chief operating officer and will take over the general manager of One Card in 2022, said that One Card has worked hard in the past to expand various consumption scenarios and infrastructure construction, and integrate the consumption data of stored value cards (formerly electronic tickets) and electronic payments.
Life consumption, life payment, community transactions, covering a fairly complete consumption scene. From the analysis of all scenarios and all data, the one-card has more advantages than other operators in terms of profitability. Domestic electronic payment operators are facing losses. How to increase profits in the future needs to start from the data gold mine.
All-in-one card puts the transaction data of electronic ticket and electronic payment users into households, and builds a data center to improve the call analysis of data in different scenarios, adopt more refined grouping of user transaction behavior, provide differentiated marketing subsidies, and increase user frequency of use .
The company also finds out target consumers based on consumption data analysis, and delivers preferential messages from merchants to target customer groups. Since there are currently more than 5.3 million electronic branch users, and the membership is a real-name system, according to age, consumption amount, time, special stores and other conditions, messages are sent to target consumer groups. The All-in-One Card has started small-scale testing with cooperative merchants to collect opinions from cooperative merchants. It will be opened to more special agency merchants in the second quarter of 2023 at the earliest and the third quarter at the latest.
Jiekou Payment also announced that it will launch a membership grading system in the second quarter of 2023 , and make more detailed groupings based on consumption data. For example, the more frequent transactions and the higher the amount, the higher the membership level and enjoy more subsidies. Learn more about users from data analysis, replace a large number of subsidies with differentiated subsidy feedback, and strengthen the membership management of electric branch.
Taking auto insurance as an example, from the analysis of user consumption data, for example, some users often refuel and purchase auto-related supplies, it is judged that he may be a driving group and has a demand for auto insurance, and cooperates with insurance companies to recommend auto insurance for these users. Users purchase auto insurance through electronic payment through Jiekou Payment. In addition to the handling fee, Jiekou can also charge the operator for message delivery according to the conversion rate.
The company also cooperates with banks to launch a loan service for merchants. This service first provides the de-identified transaction data of merchants to the bank for modelling, and recommends loan services to merchants who may need them. When merchants apply for loans, With its consent, the real street transaction information will be provided to the bank instead of financial proof. Jiekou also cooperates with banks to simplify the loan application process in order to improve the loan conversion rate.
E-payment supports more services and promotes merchants to accelerate digital transformation
With the opening of more businesses under the new law and the entry of new players, the domestic electric branch market will flourish in the future. After the electric branch industry forms a large-scale operation, the analysis and application of consumption data will not only strengthen membership management for electric branch operators, but also provide external The precise marketing and de-identified data insight services have become the transformation and development of enterprise merchants.
Hu Zili, a senior analyst at MIC, believes that there are three trends in the electronic payment industry in the future: more diversified services, financialization of payment, and digital transformation of merchants. First of all, payment services are diversified. Payment will cover from the most basic function, simple shopping payment, to bill payment and tax payment, covering more and more payment scenarios, bringing greater attractiveness to consumers and providing services to e-commerce operators. means of acquiring customers.
The second is the financialization of payment, for the electronic payment industry to cooperate with the financial industry to provide services such as payment buckle insurance, lending, buy now and pay later. He believes that it is the core trend of the future development of the payment industry, which can bring profits to electric branch operators.
The diversification of payments provides business operators with access to customers, and the financialization of payments further guides consumers to financial services. Even payment companies cooperate with partners to share and de-identify data to grasp the relevance of consumer behavior and discover possible business opportunities. The third trend is to accelerate the digital transformation of merchants, such as strengthening member management, marketing and back-end management.