Huawei officially entered the payment field by expanding its “border”.
Recently, the reporter of Securities Daily noted that Huawei payment has been officially launched in Huawei wallet app, and launched the marketing activity of random reduction of bank card payment for the first time.
Taking the first binding and random reduction marketing activities is one of the common practices of Payment institutions in obtaining customers. The purpose is to promote users to use Huawei payment and strengthen users’ stickiness through repeated payment and consumption behavior. Su Xiaorui, a senior analyst at Analysys, told the Securities Daily that the official launch of Huawei payment shows that its own payment application system has gradually matured and begun to officially face the market.
has supported the binding of savings cards of more than 140 banks
At present, Huawei payment has entered the promotion stage. It is understood that Huawei payment relies on Huawei wallet as the management entrance to provide individual users with balance payment, bank card payment, red envelope, recharge, cash withdrawal and other services; It also provides enterprise users with rapid integration of payment capacity and provides services such as fund settlement, automatic account distribution, marketing empowerment and so on.
The reporter noted that at present, Huawei payment can be used in Huawei wallet traffic card recharge, Huawei wallet mobile phone recharge and harmonyos services, as well as Huawei video, Huawei music, Huawei theme and Huawei cloud space. Meanwhile, it has covered Huawei applications and some third-party applications, including Huawei music, Huawei video, Huawei reading, mango TV, Youdao cloud notes, PP video, etc.
Meanwhile, it is reported that at present, Huawei payment has supported more than 140 bank savings card bindings including Industrial And Commercial Bank Of China Limited(601398) , Ping An Bank Co.Ltd(000001) , China Everbright Bank Company Limited Co.Ltd(601818) and more than 100 bank credit card bindings, of which some banks only support credit card bindings.
According to the reporter’s actual experience, when using Huawei payment, users need to open a balance account first. The balance is the funds that users pay in Huawei, which can be used for recharge, payment and other functions. They need to pass the real name authentication, enter the name, mobile phone number, verification code and other information, and complete the payment through Huawei payment after binding the card.
In addition, when interviewing users randomly, the reporter of Securities Daily found that many users could not distinguish the difference between Huawei payment and Huawei pay. In fact, Huawei payment is not the same payment tool as Huawei pay. It is reported that Huawei payment provides payment services by Shenzhen xunlian intelligent payment network Co., Ltd. Huawei pay is a mobile flash payment capability jointly launched by Huawei wallet and UnionPay. It supports payment methods such as NFC payment, UnionPay QR code and online payment. There are essential differences between the two.
intended for Hongmeng
In fact, Huawei has publicly stated that it will not apply for a payment license. It is this sense of boundary that has made Huawei go through some detours in the payment field.
It is not uncommon for mobile phone manufacturers to cut into payment. Under the guidance of applepay, mobile phone manufacturers represented by Huawei and Xiaomi have laid out the payment field and built their own wallet products through mobile pay products without payment licenses. However, Alipay mobile phone manufacturers and Pay payment for two-dimensional code to pay for the representative of the WeChat and WeChat to pay the “competition” after many years, the result is just passable.
In August 2016, China UnionPay and Huawei announced that cloud flash payment fully supports Huawei pay, covering the application of various payment innovative technologies such as NFC; In 2019, Huawei wallet launched all models to support UnionPay QR code payment, but relying on UnionPay flash payment system, pay products are easy to be “channelized”; By March 2021, Huawei won the payment license by acquiring 100% equity of the third-party payment company Shenzhen xunlian Zhifu Network Co., Ltd.
Most industry insiders believe that Huawei failed to resist the “true fragrance” law in the end. According to Yu Baicheng, President of zero one research institute, this is the inevitable result of long-term development. “Payment business is very important for ecological Internet giants. The value of payment license is not only the payment business itself, but also an important infrastructure for building Internet business ecology.”
Looking at the current payment industry, the China Mobile payment market has been developing for many years, and has formed three relatively stable camps, namely WeChat payment, Alipay and UnionPay cloud flash payment. In addition, according to the report “annual special analysis 2022 of non bank payment institutions” released by Broadcom analysis, the scale of mobile payment continued to grow from 2014 to 2021, but the growth rate decreased from more than 100% in the early stage to 10% – 20% in the past two years. The main reason is that the development of mobile payment market has become mature, the overall base is large, and the C-end traffic has gradually peaked. Although Huawei payment has its own advantages and competitiveness, is it too late to enter the payment industry at this time? How will the future Alipay, WeChat and other issues are also widely discussed in the industry.
Wang Pengbo, a senior analyst in the financial industry of Broadcom consulting, believes that Huawei’s competitiveness is reflected in its own product ecosystem, such as the majority of users of Huawei mobile phones and related ecological products, the recognition of Huawei brand by Chinese people, and its influence on the upstream and downstream supply chain of Huawei Mobile phones. He told the Securities Daily reporters, “HUAWEI payment wants to achieve the scale of WeChat and Alipay is not very likely. It can be said that HUAWEI will not be able to shake up WeChat and Alipay status within a short period of time. The user’s dependence on the habit of using them is difficult to change in a short time, but there are still possibilities in the future.”
“Payment business is very important for ecological Internet giants. Its business value, data value and user value are very high. It has become the standard configuration of leading Internet companies. At present, Huawei payment is more necessary preparation for improving Hongmeng ecology and realizing closed-loop.” Yu Baicheng added that.
However, many people in the industry believe that Huawei payment wants to do something in the payment industry in the future, and the future is still full of opportunities. According to Baicheng, the share of Alipay and WeChat payment may be reduced after the payment industry’s anti monopoly regulation is strengthened. At the same time, with the payment of interconnection and the opening of the head Payment institutions, it provides an opportunity for HUAWEI to pay.
Su Xiaorui said that with the continuous promotion of the digital RMB pilot, taking the hardware wallet as the entry to open the customer acquisition and live customer business may become an opportunity for mobile phone giants to affect the pattern of the payment industry.
