The Battle of Mobile Payment System for Transit Bus

- Oct 18, 2017-

With the arrival of two-dimensional code, the war of mobile payment in the field of public transport has become increasingly fierce. Through the mobile payment network recently released three copies of the cup, Alipay and WeChat mobile in the public transport sector pay panorama, we can be very intuitive to understand the current three major payment giant beachhead in transit mobile payment of the illustrious record. But in fact, in addition to the three payment giants, bus companies, city card companies and other third party payment agencies are also not small.

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Since the birth of the bus card, the bus company + closed loop card company to build the payment system has been very stable, two-dimensional code pay cut traffic after the pair began to appear in the bus company "solo" phenomenon. For example, Jinhua bus group, Beijing rail transportation company, Haining Dayuan bus company and so on, have been self built APP, their own travel code. After all, this is the era of users for the king, who has the largest number of users, who will have the dominant power of the market. After the bus company although master bus resources, but users and data in the card companies, and two-dimensional code play compared to the bus card threshold is much lower, who have the opportunity to create entrance, who have the opportunity to seize the user.

Card company is mainly to NFC all terminal and two-dimensional code payment as the direction of force, the two product lines to meet different user groups and travel demand. All along, the card companies continue to try to promote the card business to the mobile terminal development, from 2.4G mobile payment to two-dimensional code payment, the card companies take detours more than anyone else. In the short term, two-dimensional code threshold is low, suitable for a wide range of people, is conducive to the early promotion; in the long run, NFC speed, experience more, the potential is also greater. But because of the realization of NFC mobile phone air card is more complex, the need to build a TSM platform, in fact only part of a second tier city to realize empty, other city is basically rely on cooperation with mobile phone manufacturers.

According to UnionPay statistics, from the end of last year to September this year, a nationwide bus, there have been nearly 20 city subway has been opened UnionPay flash pay cloud, including Qingdao, Ninghai, Yinchuan, Zhaoqing, Jiashan has supported include two-dimensional code UnionPay, cloud flash pay the full range of products is almost zero threshold payment experience. Don't know in the restaurant, Chaodeng frequency mobile payment scene Alipay and WeChat have been carved up, UnionPay in public transportation can turn the tide?

Alipay is developing a two-dimensional code payment traffic, after the beginning of 2016 to pay for the two-dimensional code to promote the Guangzhou subway, found that the bus is the best entry point, and now there are so many buses in the city to support Alipay car brush dimensional code. However, the two-dimensional code into the traffic, technically there is no big difficulty, the key lies in the mode of cooperation.

From the analysis of two-dimensional code to Alipay APP in the car, there are 4 different car codes:

The 1. one is the Alipay car code, apply for opening in Ji'nan, Tianjin, Nanjing and other 16 city one yard pass";

2. the second is Alipay and electronic bus card companies to issue cards, such as Hangzhou, Wuhan Alipay electronic bus card bus card, only in the local traffic.

3. the third is the electronic bus Alipay cooperation with the bus company issued a card, such as the Qingdao real bus card, do not have interoperability.

The fourth is the 4. card company make travel codes, such as Shenzhen's car code, the code and the acquiring has nothing to do with Alipay, Alipay offers a service window, so the car entrance code is deep, usually hidden in the city service, and the first three codes can bus in the Alipay home page, by adjusting the payment code, and then switch to the bus yards.

Alipay car can pass the code though, but the results from the pilot, now almost every city has only one or two lines in the pilot, mainly due to the code, acquiring, clearing and settlement are Alipay's own playing, completely bypassing the card company, if only Alipay output transformation, it is difficult to radiation the national transportation system; other public transportation belongs to the public, the government usually subsidies paid to the card company, to give personal to bus card preferential form, if Alipay adhere to this mode, no subsidies will be difficult to retain users, so this model will not be too long. It is speculated that Alipay car code or just Alipay pre occupy the market rapidly, then explore the multilateral cooperation mechanism, see the specific mode of Hangzhou.

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Tencent is the end of July this year to join the public transportation mobile payment scene of the dispute, in the end the match battle, standard competition, competing interests, Tencent has developed a small program based on WeChat service bus code. It is reported that the Tencent and Alipay car electronic bus code card is very similar, the depth of cooperation between Tencent and local bus company and card company, by the Tencent to provide technical and account support, but each city bus account is not a code, and do not have interoperability, clear work by the Tencent responsible for clearing points.

For the first time to open the use of two-dimensional code ride, you can search through WeChat small program "Tencent ride code", and signed the WeChat free payment, you can sweep code ride. After the successful opening, Tencent ride code will automatically enter the WeChat card, again used in "I card package - membership card" can be easily found. According to mobile payment network statistics, from the end of July this year on the line so far, just two months has been in Guangzhou, Foshan, Zhumadian, Hefei and other 8 city bus service has opened the Tencent code.

In addition to the above mentioned industry role, actually paid from public transportation card to the mobile development process, the two hidden in the card behind the company or a payment institution system service providers not only provide technical support and solutions, the strength of the service provider through the investment of POS equipment, independent development and operation of APP, is gradually from behind the stage.

NFC payment has been developing in the field of public transport for nearly ten years, has been supported, but the market has not seen improvement. In contrast, two-dimensional code is getting more and more momentum, from Alipay, WeChat and China UnionPay have the layout of the two-dimensional code to seize the traffic payment scenarios, can predict the bus mobile payment market will renewable variables, more and more city travel will choose the two-dimensional code.

Of course, there are many different voices that two-dimensional code is not suitable for such a high frequency, efficient payment scenarios, but in fact, from the technical debate NFC and two-dimensional code which is better than bad, and not much significance. The development of mobile payment has been more than ten years ahead of the world, but in the field of public transport is very backward, so far there is no way to replace the real mobile phone cards, as people go to the last barrier without purse. Now the market choice of two-dimensional code, also did not give up NFC, for industrial development is good. The future of the two-dimensional code can be based on transportation, mainly depends on the experience of the product industry and the balance of interests of all parties; NFC will not be the stumbling block of two-dimensional code, but its short board.