The development of mobile payment NFC

The so-called mobile payment is also called mobile payment, which is a service mode that allows a user to use his/her mobile terminal (usually a mobile phone) to make payment for goods or services consumed. Mobile payment is a big scene for NFC applications. With the radicalization of Apple Pay, NFC has followed the trend to expand the market. As far as the current market development status is concerned, the development momentum of NFC mobile payment is strong, but there is still some distance from the overall popularity that everyone expects. .

"NFC" full-blown and long

According to the report released by China Gold Securities, “Apple Pay and China UnionPay are expected to evoke NFC mobile payment demand that has been sleeping for many years, and the NFC payment function will inevitably become the standard for future mobile phones. The hardware and software manufacturers in the entire industry chain will certainly benefit from this.” Cao Lei, director of the China Electronic Commerce Research Center, pointed out that in the past few years, the development of mobile payment has experienced the payment "1.0 era" represented by Alipay. Then, the social payment represented by WeChat Payment broke the unique situation of the Alipay family and mobile payment entered the “2.0 era”. The launch of Apple Pay is an opportunity to develop mobile payment, and mobile payment is expected to open the “3.0 era”. It seems that the future development of the mobile payment market can be described as bright, but can the reality really be as good as predicted?

Apple Samsung Grabs the Market UnionPay Huawei Joins Hands

The field of mobile payment mainly includes three modes: NFC payment, scan code payment and card machine payment. Scan code payment such as Alipay and WeChat are even rising stars in recent years. On February 18 this year, Apple launched Apple Pay in the mainland, and China became the fifth country for Apple Pay to land. On March 21st, Samsung announced that Samsung Pay officially entered the Chinese mobile payment market, positively acknowledging Apple's previously announced Apple Pay.

Under the pressure of Alipay and Tenpay, the two giants, more and more offline merchants joined the ranks of mobile payment, and the market competition between Samsung and Apple will become more intense. In the Chinese market, from the perspective of time, Apple Pay seized the initiative, but from the experience of using, Samsung Pay can be used for both NFC terminal POS machines and magnetic card POS machines without NFC function. In the global market, the market share of Samsung and Apple in 2015 was 24.8% and 17.5%, respectively, and the offline terminal application merchant Samsung exceeded Apple. It seems that the two roads to seize the market have advantages and disadvantages, and it may be difficult to distinguish them in a short period of time.

As a giant of domestic mobile phone manufacturers, Huawei has caught up with the development boom of the payment platform, becoming the third in the world and the first domestic mobile phone manufacturer to launch its own NFC payment platform. On March 21, Huawei and China UnionPay reached Huawei Pay cooperation. Specifically, UnionPay cardholders can safely manage and use UnionPay cards on mobile phones with Huawei Pay. In the future, Huawei mobile phone users can enjoy the two functions of unlinked payment and online remote payment under UnionPay Cloud Flash Payment on mobile devices. In fact, Huawei Pay has been late in comparison to Apple Pay and Samsung Pay. Even so, Huawei Pay, a local brand, still occupies a certain advantage. Huawei Pay is the same as other UnionPay CloudStorm products, all adopting the Token technology and covering various innovative payment technology applications such as NFC, enabling offline contactless payment of mobile devices such as mobile phones, as well as remote support. Online Payment. Previously, Huawei's multiple models of smart phones have been able to use "cloud flash pay" HCE products, and the majority of consumers trust and love.

Credit card fees cut NFC market will be under pressure

NFC has made a great fortune for many years. Will this shareholder's wind power be soared through mobile payment? The fact is not so simple.

On March 18th, the National Development and Reform Commission and the Central Bank announced that they would reduce the credit card fees, and would re-divide the interests of different institutions surrounding the credit card industry. This new regulation will further reduce the living space of third-party payment agencies and intensify the reshuffle of third-party payment industry. For non-standard payment agencies, the illegal code space is no longer available. For payment organizations with a homogenous business model and a single profit model, the profitability space is further compressed.

In the face of this situation, the Internet payment is less affected. The current rate is six thousandths, but it is not ruled out that some merchants require price reductions such as Alipay and Wechat on the grounds of reduction in card fees. However, NFC payments are not. According to the industry, third-party payment agencies have an annual income of more than 30 million, and they can barely operate. Below this number is difficult to maintain. It is estimated that there will be a group of third-party payment companies that will be closed down. Therefore, although the potential of mobile payment market is huge, the NFC application market is still restricted.

On the other hand, mobile phone manufacturers to launch their own mobile payment products, generally have to undergo a long test of China UnionPay, mobile phone manufacturers are also faced with a lot of development work, although the giants have launched a mobile payment platform, but for the vast majority For most local players with market share, NFC mobile payment needs support, but it will take some time to wait. China UnionPay also has news that domestic brands Huawei and Xiaomi have entered the first batch of support candidates, but the earliest time to market will have to wait until the third quarter, and other brands will only be later.

From this point of view, the NFC market is currently performing well, but it does not mean that this year will break out. The lack of terminals indicates that this year is only the first year of mobile payment, and the real outbreak will be in 2017. NFC still needs to wait patiently and looks forward to a full-scale outbreak next year.