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3rd party payment landscape in China by L'Atelier
 

3rd party payment landscape in China by L'Atelier

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    3rd party payment landscape in China by L'Atelier 3rd party payment landscape in China by L'Atelier Presentation Transcript

    • Online payment solution in China by
    • Summary • Payment Gateway vs Third Party Payment • Stakeholders of Payment Gateway in Asia 1 2
    • Payment Gateway vs Third Party Payment 1
    • Payment Gateway vs. Third Party Payment What is a Third Party Payment lower setup fees fixed monthly costs charge a higher discount rate (as much as 5.5%). cheaper for very small business (<$5000/ month) • A Third Party Processor does not require its merchants to obtain a merchant account, so they are able to start processing transactions much quicker • The initial costs may seem cheaper • The fees which are charged are higher • Less expensive in the short term and that is why so many new online businesses choose to start with some of them like PayPal. • Their name shows up on the customer’s credit card bill • They are responsible fraudulent transactions
    • Example of fees (PayPal) TRANSACTION FEE FOR ONLINE PAYMENTS (based on monthly sales) PayPal fees $0 to $3,000 2.9% + $0.30 per transaction $3,001+ to $10,000 2.5% + $0.30 per transaction $10,001 to $100,000 2.2% + $0.30 per transaction $100,001+ 2.2% + $0.30 per transaction Deal Flow Rate Term of service 0 - 60k 1.20% 1 year 60 - 500k 1.00% 1 year 500k – 1M 0.90% 1 year 1M – 2M 0.80% 1 year 2M - X 0.70% 1 year Example of fees Alipay Payment Gateway vs. Third Party Payment What is a Third Party Payment
    • How Third Party Payment Works (escrow) Buyer pays with Alipay Alipay tells the merchant that the money is here Merchant delivers the product Payment is released after buyer confirms delivery 1 2 3 4 Payment Gateway vs. Third Party Payment What is a Third Party Payment MerchantConsumer 3rd PP
    • • E-commerce application who provides the interface between your website/computer and your Merchant Account Provider, with a direct integration. • The equivalent of a physical point of sale terminal located in most retail outlets. • Payment gateways protect credit card details by encrypting sensitive information, such as credit card numbers higher setup fees monthly and up-front costs lower discount and per- transaction rate Cheaper for bigger business (>$5000/Month) Payment Gateway vs. Third Party Payment What is a Payment Gateway
    • Example of fees (Eway - Australia) Annual Fees Eway fees $399 (5free transactions/month) $0.60 per transaction $799 (200 free transactions/month) $0.40 per transaction $1499 (400free transactions/month) $0.22 per transaction Payment Gateway vs. Third Party Payment What is a Payment Gateway
    • How Payment Gateway Working User places order Merchant’s Web Server Payment Gateway BankMerchant Request payment Gateway Request to Bank Bank Response Money paid to Merchant Payment Gateway Response Server Response Payment Gateway vs. Third Party Payment What is a Payment Gateway
    • Stakeholders of Payment Gateway in China 2
    • Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in China
    • Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia Global
    • Alipay Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia Alipay • China’s leading third-party online payment solution • More than 550 million registered users • 8.5 million transactions daily. • Provides an escrow payment service • Provides payment solutions for Taobao and Alibaba.com, and more than 500,000 external merchants for online retail, virtual gaming, digital communications, commercial services, air ticketing and utilities fee payment transactions. • Partners with more than 65 financial institutions, including 19 leading national and 45 regional banks across China, as well as Visa and MasterCard. • Facilitates offline value-added services through a strategic partnership with China Post, which has coverage of rural areas and university campuses.
    • Alipay Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia Alipay Deal Flow Rate Term of service 0 - 60k 1.20% 1 year 60 - 500k 1.00% 1 year 500k – 1M 0.90% 1 year 1M – 2M 0.80% 1 year 2M - X 0.70% 1 year Prepayment Deal flow Term of service ¥600 60k 1 year ¥1,800 200k 1 year ¥3,600 450k 1 year Deal flow rates Subscription rates
    • Tenpay Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia Tenpay • The website must be located in mainland China and your site shall be filed with the authority • The main competitor of Alipay. • Developed by Tencent which owns the most popular IM in China – QQ with more than 300 million users. • More than 200,000 shopping websites accept Tenpay. • Compatible with the e-banking service of major domestic bank. • Users can use Tenpay to send payment/ Receive payment • Withdraw money to bank account. • Use to charge mobile, deposit money to game account, and buy air ticket. • Provides an excellent payment platform to corporate users, covering B2B, B2C and C2C areas.
    • Tenpay Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia Tenpay Prepayment Deal flow Fee Rate of Excess Part Term of service Suitable Commercial Clients(Average monthly trade volume) ¥480 50k 1% 1year <¥5,000 ¥1,680 200k 1% 1year <¥20,000 ¥3,750 500k 1% 1year <¥50,000 ¥7,000 1m 1% 1year <¥100,000 ¥12,000 2m 1% 1year <¥200,000 ¥25,000 5m 1% 1year <¥400,000 ¥45,000 10m 1% 1year >¥500,000
    • 99Bill Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia • The website must be located in mainland China and your site shall be filed with the authority. • Has over 80 banking or financial institutions with over 300 access points. • Has over 1.1 million merchant partners that span 20 industries, including travel business, insurance, online shopping, logistics, clothing and education. • First to provide these merchant partners with innovative services like no-card credit card payment, large-amount online payment support and IVR voice payment.
    • 99Bill Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia Payment category Register or not Fee/Rate Bank card payment No 1%(0.01yuan minmum) 99bill account payment Yes 1%(0.01yuan minmum) Telephone bank payment No 1%(0.01yuan minmum) Offline payment No ¥1 each
    • China UnionPay Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia • The only bankcard organization in China. Three in ten cards worldwide are a Union Pay Card • English gateway • 48h approval • No China entity required • No china bank account required • Flat low service rate.
    • China UnionPay Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia Merchant Location China Discount Rate Rates from 0.7% Activation Fee $250.00 Monthly Account Fee $25.00 USD per month Transaction Fee From 5 cents USD per transaction Rolling Reserve 2% of gross volume* Payment Currency ¥ CNY (RMB) Settlement Currency ¥ CNY (RMB) Settlement Timeframe From every 2 days Cards Accepted Chinese debit cards and credit cards Integration Method Hosted sales page (https post) / Various
    • China PNR Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia • Set up in shanghai in 2006 • Its founder was the former high level executive from China UnionPay • Focus on financial payment and industrial chain Payment •Specialized in Financial Fund, airline travel, and gaming industries
    • Yeepay Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia YeePay Advantages • All-In-One Total Solutions for Online, Mobile, Telephone, POS. • Value-Added Services including Financial & Marketing Tools. • Customized Vertical Solutions for Industry Specific Applications. Products & Services • Online Payment (Gateway & Virtual Account/e-Wallet) • Mobile Payment (Flexible Billing: In-App, Pay- Per-Play, Subscription) • Telephone Payment (Call Center-based Solution) • Point-of-Sale Terminal Payment (Retail) • Multi-card support: Bank Cards (Debit/Credit) + Universal Prepaid Cards • B2C, B2B, C2C Support • Credit Payment Service Major Verticals • Online Shopping (eCommerce) • Digital Entertainment (Gaming) • Air & Travel • Telecom & Mobile • Education • Insurance • Logistics Certification/Membership e-Payment License(Issued by People’s Bank of China) Member of China Payment and Clearing Association National Information Security Certification Payment Card Industry Security Standards ISO/IEC 27001:2005
    • Yeepay Payment Gateway vs. Third Party Payment Stakeholders of Payment Gateway in Asia Payment category Fee/Rate Online payment 1% Easyown rechargeable phone card 1% Jcard 1%
    • L’Atelier Management Consulting (Shanghai) Ltd. Cloud Nine Plaza, 9/F 1118, West Yan'an Road | 200052 Shanghai | China T 86 21 62 81 85 33 | www.atelier.net | asia@mail.atelier.net