Huawei enters the mobile payment market, covering multiple third-party applications

Huawei has entered the mobile payment market, covering a variety of third-party applications

Huawei has entered the mobile payment market, covering a variety of third-party applications. According to analysts, it is expected that there will be A certain number of users within the Huawei product ecosystem have been converted into payment wallet users, and Huawei has entered the mobile payment market, covering a variety of third-party applications. Huawei has entered the mobile payment market, covering a variety of third-party applications 1

Huawei Wallet has recently launched the Huawei payment function. Due to the binding of bank cards and marketing activities such as instant discounts on payments, Huawei Wallet has become one of the most popular apps in the application market. The fourth-ranked payment application, behind Alipay, UnionPay, and Yipay.

Huawei Wallet launches Huawei Pay

The keen sense of the "wool party" has allowed Huawei Wallet, which has just launched Huawei Pay, to quickly rise in the application market.

In order to promote the newly launched Huawei Pay, the company launched marketing activities such as an instant discount of 5 yuan for the first payment with a bank card, and an instant discount of up to 288 yuan for old users. Huawei payment service technology and functions are provided by Shenzhen Xunlian Zhipay Network Co., Ltd. (hereinafter referred to as Xunlian Zhipay). Currently, users can enjoy recharge, cash withdrawal, transfer/receipt, payment/consumption, refund, red envelope and inquiry, Password-free payment and other functions.

However, to use this feature, the mobile phone needs to be supported by Huawei service framework. Therefore, non-Huawei brand mobile phones may not be able to enjoy full functions, which has attracted many netizens to leave "one-star" complaints in the app market. But even so, it does not affect the rapid rise of Huawei Wallet in the application market.

Nowadays, Huawei Pay is launched, which perfectly explains what "excellence in speech and integrity in body" means.

Six years ago, at the 10th China Payment Industry International Summit in 2016, Su Jie, vice president of Huawei Cloud Services, publicly stated: "Huawei will not apply for a payment license. An enterprise must have its own boundaries." We don’t want to apply for a license, because that’s not what we’re good at.”

However, the changing market situation has pushed Huawei into the payment market. At the beginning of 2021, Huawei ended up acquiring the equity of Xunlian Zhipay, a licensed payment institution. The company was issued a payment license in July 2014. The license type covers nationwide Internet payment and mobile phone payment businesses, excluding bank card acquiring business.

Coincidentally, Xunlianzhipay originally belonged to ZTE. The company’s first mobile payment product was named “ZTE Pay” and it also innovatively launched an ultrasonic shopping function. However, because the business did not improve significantly, ZTE gradually divested Xunlian Zhipay.

However, Xunlian Pay, which was spun off by mobile phone manufacturer ZTE, was eventually acquired by mobile phone manufacturer Huawei.

At the same time as the acquisition, Huawei began to recruit a large number of positions related to the payment business, including positions responsible for reserve fund management, payment clearing, bank cooperation, etc., to prepare for the launch of Huawei Pay one year later.

Does WeChat and Alipay work?

Mobile payment has become one of the payment methods that consumers rely heavily on, but when talking about domestic mobile payment, the first thing people think of is Alipay and WeChat Pay.

In fact, there are many Internet companies that have obtained payment licenses: Meituan, Pinduoduo, ByteDance, Kuaishou, Bilibili, etc. have obtained payment licenses through equity acquisitions and other methods, and put their own payment applications on the platform Promotion on. Even from the perspective of mobile phone manufacturers, Huawei and Xiaomi have obtained payment licenses before.

However, their online payment does not seem to make WeChat and Alipay feel trembled.

The reason why Huawei Pay has attracted attention is based on Huawei’s large number of mobile terminal users and user stickiness. Public data shows that as of the end of December 2021, Huawei terminals have more than 730 million monthly active users worldwide.

However, judging from the promotion of payment applications by “predecessors”, the number of users is not necessarily bound to the payment method. Judging from the current third-party payment operations of many Internet companies, even Pinduoduo and Bytedance, which have a very large number of users, are difficult to shake Alipay and WeChat Pay in the payment field.

The current application scenarios of Huawei Pay are mainly reflected in its own product ecology, and full functions are not yet available on other brands of mobile phones, and there is still a long way to go before national-level applications.

Currently, users’ usage habits in payment scenarios are relatively strong. WeChat Pay and Alipay already occupy a large market share. If you want to change user habits, you can’t just rely on launching a payment service and one or two marketing activities. Completed. More importantly, the current online functions of Huawei Pay are not different from those of WeChat and Alipay in the field of mobile payment.

From a technical perspective, Wang Pengbo, a senior analyst in the financial industry at Broadcom Consulting, said that it will still take some time to build a compliant and sustainable technical system in the payment field.

He said that for Huawei Payment, the continued advancement of Internet enterprise interconnection is also an opportunity. If Huawei Pay has a good experience, it may be able to convert users from major traffic portals in the future. At the same time, a new generation of technological innovation may also bring opportunities for Huawei payment.

Payment may open up the financial sector for Huawei

However, even if it cannot shake WeChat and Alipay, it does not prevent Huawei from seeking long-term profits in the huge payment market. Chance.

In the initial launch of Huawei Pay, in addition to consumer services, Huawei Pay can also provide corporate users with rapid integrated payment capabilities, fund settlement, automatic account sharing, marketing empowerment and other services, as you can see It actively expands the B-end user market and avoids direct confrontation with WeChat and Alipay.

In the Hongmeng system, the existence of Huawei Pay is likely to improve its own payment ecosystem. After all, there is Apple Pay under iOS and Google Pay under Android. Hongmeng OS can also be configured with Huawei Pay, making the payment system a part of the operating system ecosystem.

In terms of new payment technologies, digital renminbi may be an opportunity for Huawei Payments. At present, the digital renminbi has just begun to be implemented. For Huawei Pay, in the digital renminbi payment scenario, WeChat and Alipay have not taken the lead for the time being, nor have they won any market. All payment platforms are on the same starting line. of. In terms of brand, Huawei is still very influential. With the number of fans and fan stickiness, it has the opportunity to seize the market in new business areas.

It can be seen from the above that Huawei’s online payment is likely to want to treat financial business as a sector. In addition to its strategic significance, the value of the payment license is more importantly an opportunity to help Huawei open up the business model of financial business. . Huawei has entered the mobile payment market, covering a variety of third-party applications 2

Following Meituan Pay, Didi Pay, Duoduo Pay, and Byte Pay, now Huawei Pay is also here! On April 5, a Beijing Business Daily reporter noticed that Huawei Pay appeared in the Huawei Wallet App and launched first-time bundle and random instant discount marketing activities.

From a functional perspective, Huawei Pay can provide balance payment, bank card payment, red envelope, recharge, cash withdrawal and other services for individual users. It can also provide corporate users with fund settlement, automatic account sharing, marketing empowerment, etc. . According to analysts, it is expected that a certain number of users within the Huawei product ecosystem will be converted into payment wallet users in the short term. However, it is still difficult to attract more users and shake up the existing payment pattern.

The payment business is aggressively marketing to attract customers

“Huawei Pay offers an immediate discount of 5 yuan for the first payment with a bank card” and “old users of Huawei Pay receive an immediate discount of up to 288 yuan”. On April 5, a Beijing Business Daily reporter discovered this marketing activity after clicking Huawei Pay in the Huawei Wallet App.

This event is valid until April 10, 2022. On the one hand, for new users, if you use Huawei payment and the single amount exceeds 5.01 yuan, you can enjoy an instant discount of 5 yuan; in addition, for old users, you can also enjoy a discount of 5 yuan. You can get random instant discount opportunities, up to 288 yuan off, and the same user can enjoy 5 opportunities.

This first bundle and random instant discount marketing campaign covers Huawei Wallet, Huawei Cloud Space, Huawei Music, Huawei Themes, Youdao Cloud Notes, Notes, and Speak English Fluently Waiting for Huawei applications and some third-party applications.

A reporter from Beijing Business Daily found that to activate Huawei Pay, you need to enter personal information such as your name, ID number, mobile phone number, and verification code, and agree to the Huawei Pay User Agreement and Privacy Statement to activate it with one click.

The Huawei Payment User Agreement shows that Huawei payment service technology and functions are provided by Shenzhen Xunlian Zhipay Network Co., Ltd. (hereinafter referred to as "Xunlian Zhipay"). The functions mainly include recharge, cash withdrawal, and transfer. / collection, payment/consumption, refund, red envelope and inquiry, password-free payment and other functions. According to a Beijing Business Daily reporter, in addition to individual users, Huawei Pay can also provide corporate users with rapid integrated payment capabilities and fund settlement. , automatic account sharing, marketing empowerment and other services.

According to the event rules, the banks currently supported by Huawei Pay include Bank of China, Agricultural Bank of China, China Construction Bank, Industrial and Commercial Bank of China, Ping An Bank, China Everbright Bank, Shanghai Pudong Development Bank, China Guangfa Bank, China Minsheng Bank, China CITIC Bank, There are more than 160 banks including Bank of Shanghai, Postal Savings Bank of China, Hua Xia Bank, China Merchants Bank, Hengfeng Bank, and Bank of Beijing.

Regarding Huawei Pay’s marketing actions, the industry believes that it is mainly to attract new customers and attract users to complete card binding and conversion.

In fact, adopting first-time bundle and random instant discount marketing activities is one of the common practices used by payment institutions in acquiring customers. Su Xiaorui, a senior analyst in the financial industry at Analysys Analysis, pointed out that this move is mainly to promote users to use Huawei Pay and strengthen user stickiness through repeated payment and consumption behaviors.

“Currently, Huawei’s path to expand payment is to first explore small retail businesses and use its own ecological advantages to embed its own scenarios. It is expected that when the business matures, it will further enrich scenario types and Expand the scale of use," Su Xiaorui said.

Multiple considerations behind the launch of online payment

"It sounds like it is upright," but Huawei's payment business has actually been planned for a long time.

As early as March 2021, Huawei obtained a payment license through the acquisition of Xunlian Zhipay Curve. The business types are Internet payment and mobile phone payment, and will be valid until July 9, 2024. In April, Cao Chong, president of the Global Financial Business Department of Huawei Enterprise BG, publicly stated that Huawei had no plans to enter the payment market.

However, from September 2021, you can select "Huawei Pay" to purchase tickets in the "Huawei In-App Payment Checkout", and now Huawei Pay is fully online in Huawei applications. It can be seen that Huawei Pay is making progress. Enter the market step by step.

“It is expected that in the short term, a certain number of users within the Huawei product ecosystem will be converted into Huawei payment wallet users.” Wang Pengbo, a senior analyst in the financial industry of Broadcom Consulting, predicted.

From the perspective of the organization itself, in Wang Pengbo’s view, Huawei may have many considerations when launching payment products. On the one hand, having a payment license can help Internet platforms improve compliance operations and reduce payment channel costs; on the other hand, some Internet platforms have accumulated a large amount of user traffic and data after years of business development, and can rely on payment to accumulate a large amount of user traffic and data. Expand related value-added services in business chains and scenarios, and improve the ecosystem of its own platform.

From an industry perspective, Yu Baicheng, president of Lingyi Research Institute, added that in the past year or two, emerging Internet companies including Douyin, Kuaishou and other companies have actively deployed payment licenses, and Huawei’s own mobile phones Business obstacles, Alipay and WeChat Pay's share may decline after payment antitrust supervision is strengthened, and factors such as increased openness may also be an opportunity for Huawei to acquire a payment license and officially enter the payment field.

In Yu Baicheng’s view, the payment business is very important for ecological Internet giants. Based on the high frequency and financial attributes of payment, its commercial value, data value and user value are very high, and it has become a A standard feature of every leading Internet company. The value of a payment license is not just the payment business itself, it is also an important infrastructure for building an Internet business ecosystem.

Regarding Huawei’s consideration of launching its payment business and whether it intends to deploy more financial products in the future, a reporter from Beijing Business Daily conducted an interview with Huawei. As of press time, no official response from the latter has been received.

It is difficult to challenge the status of the two giants of WeChat and Alipay

Although they are new members, they are coming with fierce momentum.

From the perspective of the industry, Huawei's entry will further boost the vitality of the payment market, but it is still difficult to shake the current market payment pattern.

As Wang Pengbo pointed out, Huawei’s current competitiveness is mainly reflected in its own product ecosystem, such as the vast number of users of Huawei mobile phones and related ecological products, the recognition of the Huawei brand by Chinese people, and the upstream and downstream supply of Huawei mobile phones. The influence of the chain, etc.

However, from a promotion perspective, it will be difficult to reach the scale of Alipay and WeChat Pay in a short time, mainly due to users’ dependence on the usage habits of the two giants and the increase in user conversion costs. Therefore, At present, we can only gradually rely on the internal ecology to convert users.

In addition, from the perspective of the overall industry structure, in recent years, payment licenses have become a competition ground for major Internet and industry giants. As a third-party payment in the basic service industry, the current industry structure has generally remained stable, and the industry The links are also clearer.

In Su Xiaorui’s view, Huawei’s entry can enhance the vitality of the entire payment market, but in the short term it will have little impact on the old third-party payment market structure led by Alipay and WeChat; however, As the digital renminbi pilot continues to advance, using hardware wallets as an entry point to open customer acquisition and live customer businesses may become an opportunity for mobile phone giants to influence the pattern of the payment industry.

"Mainly because it takes a long time to digest internal convertible users and build a compliant and sustainable technical system." Wang Pengbo also said, however, with the subsequent interconnection As the payment industry continues to advance, major traffic portals have launched their own payment wallets to convert users. In his view, there is also the possibility of gradually disintegrating the existing payment industry structure in the future, but it is expected that we will have to wait for a new generation of technological innovation to drive users transfer.

Regarding Huawei’s subsequent payment business, Wang Pengbo suggested that the company needs to start from the basics. It can consider using payment to drive and connect its impact on supply chain manufacturers, and make supply chain finance and C-end users bigger and stronger. consumer finance.

The financial sector is one of the profit points of the next mobile phone ecosystem. Mobile phone manufacturers naturally have a large number of C-end users and control the relevant upstream and downstream software and hardware ecosystems, so they can naturally develop related Consumer finance, insurance and supply chain financial products, but we must pay attention to compliance construction, do not blindly expand investment in the short term, and consider balanced and healthy development of revenue. Huawei has entered the mobile payment market, covering a variety of third-party applications 3

As we all know, mobile payment has become one of the payment methods that consumers rely heavily on.

When talking about domestic mobile payments, the first thing people think of is naturally Alipay and WeChat Pay.

Alipay is backed by Alibaba and is the pioneer of domestic mobile payment.

WeChat Pay is backed by Tencent and has occupied a place in the payment field with WeChat’s massive users.

Just when everyone thought Alipay and WeChat payment were "stable", UnionPay took the initiative and joined forces with all banks to launch "Cloud Quick Pass".

Recently, the payment field has welcomed a new player-Huawei Pay, which has attracted the attention of many netizens.

According to domestic media reports, Huawei has once again entered a new field, this time in the well-known mobile payment industry.

Huawei Pay is online

At present, Huawei Pay has been officially launched in the Huawei Wallet App. In addition to supporting Alipay, WeChat Pay, and UnionPay QuickPass, the Huawei App has another " The entrance to Huawei Pay.

According to the official definition, Huawei Pay is a payment service provided by "Shenzhen Xunlian Zhipay Network Co., Ltd." licensed by the People's Bank of China.

Huawei Pay now covers Huawei applications and some third-party applications, including Huawei Music, Huawei Video, Huawei Reading, Mango TV, Youdao Cloud Notes, PP Video, etc.

Currently, the banks that support binding include more than 160 banks including Bank of China, Agricultural Bank of China, China Construction Bank, Industrial and Commercial Bank of China, and Ping An Bank.

Having already begun layout

In fact, although Huawei did not have a payment license before, it has already begun layout in the field of mobile payment.

In August 2016, China UnionPay, together with Huawei and more than 20 banks including Industrial and Commercial Bank of China, Bank of China, and China Construction Bank, announced that "Cloud QuickPass" fully supports Huawei Pay, covering various payments such as NFC. Innovative technology applications.

In addition, Huawei also launched the credit card HuaweiCard, mobile POS, etc.

But at that time, Huawei had another attitude towards the issue of payment licenses.

At the 10th China Payment Industry International Summit in 2016, Su Jie, vice president of Huawei Cloud Services, publicly stated:

"Huawei will not apply for a payment license. An enterprise must We have our own sense of boundaries and do not apply for licenses because that is not what we are good at. Huawei will stay grounded and focus on technology to provide the most secure underlying solutions for the entire payment industry."

Now, more than five years have passed. The market situation has long since changed, and Huawei has once again picked up this "cake" in the payment industry.

It can be said that "the mouth is too honest for the body." Although the mouth says no, the body is still quite honest.

According to Huawei’s annual report last year, as of the end of December 2021, Huawei terminals had more than 730 million monthly active users worldwide.

Faced with Huawei having such a large consumer business, it is not surprising to enter the mobile payment field.

Can it shake Alipay and WeChat Pay?

Some netizens have analyzed that the launch of Huawei Pay means that WeChat and Alipay will usher in strong competitors.

In fact, it seems that although Huawei occupies a huge number of mobile terminal users, it is still difficult to shake Alipay and WeChat Pay in the payment field.

Huawei Pay’s current competitiveness is mainly reflected in its own product ecosystem, and it is still some distance away from national-level applications.

Moreover, users’ usage habits have been established. WeChat Pay and Alipay already occupy a large market share. Changing user habits does not happen overnight.

Therefore, the Huawei Pay launched by Huawei will not have an impact on the current mobile payment pattern for the time being.

When Huawei enters the mobile payment market, I believe it is not simply to compete with WeChat Pay and Alipay for users. It is more likely to improve the Hongmeng ecosystem, improve user experience, and also help reduce costs.