Alipay application analysis in the network economy

Jack Ma spared no expense to build Alipay

Since 2005, e-commerce has been considered one of the areas with the greatest development potential on the Internet, but the issue of online payment security has undoubtedly become a problem for the rapid development of China’s e-commerce. the biggest obstacle.

A major initiative launched by Alipay, a domestic third-party payment platform, is the launch of a "full compensation" system. Users who were deceived and suffered losses while using Alipay will receive full compensation from Alibaba and Taobao. "Instead of compensating hundreds or thousands, if you are really cheated, we will also compensate you 100 million." Jack Ma said.

Some comments in the industry believe that full compensation has no successful precedent in the world's e-commerce, and Alibaba's generous policy may be at risk. Jack Ma said in this regard that risks will be strictly controlled within a certain range, and he took a step back and said, "We can still afford to pay hundreds of millions."

Remittances from other places are free of charge

World How can there be such a good thing - remittances to other places are free of charge? The answer is, there are on Alibaba and Taobao. On February 2, Alibaba and Taobao CEO Jack Ma announced a comprehensive upgrade of the online transaction payment tool "Alipay". No matter whether it is intra-city or remote transactions, transactions completed through Alipay will not charge any fees.

Jack Ma said that by reaching strategic partnerships with Industrial and Commercial Bank of China, China Construction Bank, China Merchants Bank and Agricultural Bank of China, Alipay can now expand from "Taobao only" in 2004 to support Alibaba's corporate users. Any user can obtain an Alipay account through self-registration, and will then be able to make free fund transfers through this credit intermediary.

Jack Ma revealed that currently tens of thousands of transactions are completed through Alipay every day, with transaction amounts in the millions. At present, in Alibaba's cooperation with banks, in order to obtain increased short-term savings deposits, banks waive handling fees for many businesses. However, Jack Ma predicts that future cooperation between the two parties will be negotiated to "a minimum handling fee."

The bank charges incurred by Alipay will be fully borne by Taobao and Alibaba.

Jack Ma said, "Since we have promised that Taobao will be free for three years, we will naturally bear the costs."

Credit card cash out is monitored

"China Securities Journal" 》Published an article stating that there are loopholes in online payment represented by Alipay. Users can use credit cards to cash out. Alipay strongly disagrees with the argument of the article and believes that the article changes the concept and does not fully understand third-party payment systems such as Alipay, misleading China. The emerging electronic payment industry.

As mentioned in the article, relatives or friends are used to make fake purchases with credit cards on websites such as Taobao, and then cash out the credit cards. Alipay believes that this is an issue that the entire domestic banking industry and third-party payment companies are paying close attention to. As mentioned in the article, Alipay and many card-issuing banks have stipulated the single limit for credit card online payments. For example, China Merchants Bank's credit card payment limit is a single maximum limit of 350 yuan.

The "Electronic Payment Guidelines" issued by the Central Bank stipulates that banks handle electronic payment services for individual customers through the Internet. In addition to using security authentication methods such as digital certificates and electronic signatures, the single amount should not exceed 1,000 yuan. , the daily cumulative amount should not exceed 5,000 yuan, and it is stipulated that online payment by credit card should not exceed the cash withdrawal limit. Obviously, there is currently no bank or online payment company in China that allows online payments as stated in the article that "the daily payment limit is determined by the credit card limit." This is a serious misunderstanding in the article about the difference between online payment and ordinary credit card payment. It will also affect the reputation of domestic banks and online payment.

Online payment is a new field. As the e-commerce field maintains rapid growth, the online payment market has also entered a period of rapid development. However, illegal and criminal activities such as money laundering and cashing have also occurred.

Alipay has put into use its self-developed first domestic online payment risk monitoring system since last year. This system can monitor some illegal bank card operations and facilitate manual intervention and timely response. So far, it has cooperated with banks to stop this There have been several cases of users using online payments to launder money and illegally cash out. As described in similar articles, realizing large amounts of cash through multiple credit card transactions is also within the scope of monitoring and detection of Alipay's online monitoring system.

It can be seen from iResearch's "2005 China Online Payment Research Report" that from 2005 to 2010, as the growth stage of my country's online payment market, this field will undergo unprecedented historic changes in the next few years. Alipay hopes that all sectors of society will support and encourage third-party payments. At the same time, for credit card holders, Alipay experts remind that illegal cash withdrawals with credit cards will not only not take advantage, but may also endanger personal credit records. If the illegal cash-out of a credit card is confirmed, the cardholder will "smear" his or her credit record. Users are also reminded to keep their credit cards safe. Alipay has previously cooperated with the police through the risk control monitoring system to crack down on cases where criminals used stolen credit cards to shop online.

Free digital certificates

Guarantee the security of users’ online payments

Since 2005, e-commerce has been considered one of the areas with the greatest potential for development on the Internet. However, The issue of safe online payment has undoubtedly become the biggest obstacle to the rapid development of China's e-commerce.

In March 2005, the domestic third-party payment platform Alipay launched the first digital certificate in the domestic payment field, issuing it free of charge to some of its certified users, electronically confirming the user's identity, and providing users with protection against Internet thieves. The security barrier helps hundreds of thousands of domestic online malls, including Taobao, achieve true "100% safe online shopping."

It is understood that in the past, when shopping online, users were always worried that the password might be cracked when filling in their account name and password; facing unfamiliar sellers, they were worried about their true identity; and they might also be worried about phishing and Trojan viruses, etc. Malware is stolen and money is stolen. In fact, new crimes are emerging in an endless stream using high-tech means such as computer viruses, Trojan horses, and phishing emails and websites to steal user accounts and passwords. According to CNNIC's latest survey, online transactions are gradually recognized by people for their convenience, economy and other advantages and are developing rapidly. Online payment has become the mainstream payment method for online shopping. But in China, according to data from the "2005 China E-Commerce Market Research Report" by the Academy of Social Sciences, there are currently 79.143 million domestic Internet users who have experienced online shopping, but less than 30 million of them have made purchases through online payment. In November 2005, a survey conducted by the China Financial Certification Center in 10 economically developed cities in China showed that online payments were not accepted because 68.7% of netizens expressed concerns about network insecurity and therefore did not dare to shop online.

In the face of the severe situation, in order to promote the development of the online payment industry, Alipay has cooperated with digital certificate system providers recognized by authoritative organizations such as the Ministry of Public Security, the Ministry of Information Industry, and the State Cryptography Administration to provide services in third-party payment services. It was the first in the industry to introduce digital certificates to ensure the security of users’ online payments.

According to Alipay, Alipay’s digital certificate has greatly improved security compared to the authentication forms currently used by all domestic third-party certification companies. Its function is similar to a driver’s driving license or a certificate in daily life. ID card, users can use it to identify the uniqueness of each other online, and it technically gets rid of the ordinary 6-digit password verification and uses 1024-bit encrypted digital signature technology. In addition, Alipay digital certificates are completely free. The bank electronic certificate we usually apply for costs 10 yuan, while the personal digital certificate of Verisign in the United States costs US$19.95 (RMB 161).

In fact, digital certificates have become the best way to solve identity authentication and network security problems. The "Electronic Payment Guidelines (No. 1)" promulgated by the People's Bank of China clearly encourages users to apply for security certifications such as digital certificates to reduce risks from the user side.

Alipay stated that Alipay conducts at least double identity authentication for all sellers who use Alipay, namely ID card authentication and bank card authentication. In addition to cooperating with the National Citizen ID Number Inquiry Service Center of the Ministry of Public Security to verify the authenticity of ID cards, Alipay also cooperates with major commercial banks to use bank account real-name information to verify whether the name and bank account number filled in by the user are accurate. It abandons the simple authentication model of some shopping websites that only relies on a mobile phone number or ID number. Alipay also took the lead in launching a "full compensation" system and transaction security fund in China, and the incidence of online fraud is only 2 in 10,000.