On the evening of November 21st, the POS manufacturer Xinguodu issued an announcement. The company acquired the 100% equity of Jialin, the acquiring institution with a cash payment of 710 million yuan, and obtained the acquiring license. This is not the first time that a POS vendor has merged with the downstream. In 2016, the POS vendor New World made a total of 680 million yuan in cash, and obtained Fujian Guotong Xingyi Network Technology Co., Ltd. through direct and indirect means. Star é©¿") 100% equity. Has the entire payment industry reached the era of industrial restructuring? Has the upstream and downstream mergers started? Some words, want to talk, but also want to explore, not necessarily right, please also axe.
Enhanced regulation and driven by falling profits
Regulatory is gradually strengthening, and no one in the payment industry has doubted this trend. After the 96 fee reform, the profit of the acquiring institution is almost swayed, and many people lament that the payment industry has entered the era of small profits. Recently, the People’s Bank of China issued an urgent notice on further strengthening the rectification of unlicensed business payment services, namely Circular 217, to comprehensively rectify the compliance of outsourcing organizations. This affects not only unlicensed institutions, but also certified institutions. The possibility of the licensee providing cover-up and obtaining gray profit is also greatly reduced, further reducing the profit channel of the payment institution. Of course, the 96 fee reform has been implemented for more than a year. Perhaps the payment agencies have completed the transformation, but whether the transformation is thorough and whether the profitability is stronger than before the implementation of the policy is still to be verified.
96 fees before and after comparison
It is also in the transition period of the payment industry that the supervision squeezes the profit margin, and the thin profit has become a common phenomenon now. Open source and throttling, creating a sustainable business model is not only a question of payment institutions, but also a question for the entire payment industry practitioners. The relationship between POS manufacturers and acquirers is a natural symbiotic relationship, and there is a subtle game relationship. The pos organization hopes that the acquirer can do a good job in the market and purchase large quantities of equipment. The acquirer hopes that the POS manufacturers hope to have lower The price of the machine makes it competitive enough in the market.
The acquisition of Jialian by Xinguodu is completely tied to the production of machinery and equipment. Just like the catering industry, if the brand is doing well, it will actively merge the supply chain to maximize profits. Of course, the acquisition of Jialian by the new countries is a back-end to the front-end, upstream merger and downstream, and thus to ensure that their products have stable sales channels. In the past few years, the author's understanding of the payment industry, there are many payment institutions want to take the initiative to buy POS equipment manufacturers, but also try to find suitable POS equipment manufacturers with appropriate size, technical strength and appropriate price. However, in recent years, the period of rapid development of smart POS is also a period in which the POS industry is a rejuvenating period for the old industry, and the acquiring industry is an era of small profits. In the era of transition to diverse services, POS vendors seem to be more in line with mergers. Industry situation.
In the era of big data, the closed loop has a better future.
In addition to POS machine manufacturers in order to stabilize sales channels, low-cost demand for acquirer machines, another important factor is the demand for data mining. In the traditional POS era, payment is only payment, and data is more sensitive. However, in the era of smart pos, POS is like a mobile phone. In addition to payment information, it can also generate a variety of data. The acquiring organization can do further business mining with big data to provide more accurate value-added services for merchants. The merchants, especially the larger merchant chains, have more diverse merchant needs, and customizable services have become a new selling point for POS vendors. Some large-scale supermarkets even hope to run a team on their own to acquire their own big data needs by acquiring machine tools. In April of this year, Wanda Network Technology cooperated with intelligent POS vendor Uber to build a smart POS ecosystem that includes elements such as payment, marketing, membership, and big data.
In the era of intelligent POS, in the era of increasing data demand, the formation of closed loops of upstream and downstream data in the industry is also a trend in the payment industry, which is also a major reason for mergers between upstream and downstream.
What is the sequela of the industry?
The POS manufacturers bought the acquirer in a wordless manner and directly eliminated the concept of Party A and Party B. They are all family members. Then, this kind of upstream and downstream integration behavior has a bad influence on the industry?
Let's take a look at the latest 2016 Nielsen POS terminal shipment report, the top ten POS machine manufacturers:
Yinjie Nico, which owns 55% of Liandi, is a foreign company. The payment institutions that may acquire China are not smooth. Whirlwind is a wholly-owned US company and has no financial access qualification. The third place in the new world already has an acquiring license. Baifu has not yet started, but in January 2017, the acquisition of CSC, a European payment company, was considered to have the idea of ​​directly annexing downstream enterprises. It may be that China’s payment of licenses is too expensive and has not been implemented; the new countries have just acquired Jialian; Shengteng and Dinghe Yuanchuan have not yet acquired a payment license.
In summary, the top ranked, strong, qualified companies have basically acquired payment licenses. Do the big POS vendors who want to play in the future have a payment license? In addition, will POS vendors who directly control the payment company reject products from other POS vendors? Will the acquired acquirer buy other POS vendors' products? Is the POS vendor that acquired the payment license offending other payment institution customers or is it strong? This is the next question that the industry has to think about.
It is also possible that the author wants more. The new country and Jialian are originally a boss. The so-called acquisition is just a name.
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