Research on the Game of NFC Mobile Payment and Two-Dimensional Code Payments

As experts have pointed out, the two modes of NFC mobile payment and two-dimensional code payment are essentially user disputes, market disputes, and of course there are security disputes, not technical disputes. The indisputable fact is that NFC mobile payment and two-dimensional code payment respectively meet the needs of different payment customer groups, and under different scenarios, the two complement each other. We have seen that any innovative payment method is invariably tested in terms of acceptance time, as it is expected to appear in the market, as it develops and pushes expectations higher. Although the two are in the dominance of the dominant party, user experience, technical security, promotion strategy and applicable scenarios, there is one point that must be adhered to. This is to satisfy the consumer diversity from the beginning to the end. Demand for payment. --editor

1 traceability

"Cloud flash pays" a hundred flowers. In 2015, “Double 12” (ie December 12), China UnionPay released the first mobile payment product of “Cloud Flash Payment”. The product is based on HCE (host-based card emulation) and Token (payment mark) technology. The cardholder has a mobile phone with NFC (Near Field Communication) function (operating system Android 4.4.2 or higher). In the version), a “banking card” for the UnionPay card is generated through the mobile banking app, that is, the cloud flash card. The cloud flash payment card can be used to pay online with the POS machine with the UnionPay “QuickPass Flash Pay” logo, or online to support the “Citilian Online Payment” merchant. UnionPay “Cloud Flash Pay” is based on contactless payment technology, covering NFC, HCE, TSM (Trusted Service Management) and Token and other innovative payment technology applications, enabling smartphone terminals to achieve “air card issuance and non-connection”. Flash payment, online payment and other functions.

In 2016, Apple Pay, Samsung Pay, Huawei Pay, MiPay and other “Cloud Flash Pay” mobile payment products were launched, and they were promoted in mainland China, Hong Kong, Macao and Taiwan, as well as in Korea, Singapore, Australia, Canada and other domestic and overseas regions. These NFC mobile payment products generate virtual bank cards through the mobile phone APP. When used offline, the mobile phone is brought close to the POS machine, the card is called out, the fingerprint is verified, and the transaction is completed.

"Two-dimensional code payment" hundred schools of contention. At the end of 2013, Alipay and WeChat launched the “main scan mode” for offline QR code payment after the online business, that is, the QR code of the merchant under the mobile user. Although, in March 2014, the People's Bank of China stopped the QR code payment with security. However, the promoter did not stop the layout of the offline code payment, but changed it to the mode of being scanned, that is, the offline merchant swept the mobile client. The code code, the merchant installs the scan code device, scans the user's QR code, and the user completes the payment through the mobile terminal. Since then, a number of third-party payment agencies have launched a variety of payment methods that integrate WeChat, Alipay, JD, Baidu wallet, QQ payment, etc., for the two-dimensional code payment products for offline receipt. It is worth mentioning that commercial banks are also beginning to participate. On July 15, 2016, ICBC launched a two-dimensional code payment product covering the whole scene of online and offline payment, becoming the first commercial bank in China with QR code payment products. Similar to Alipay and WeChat QR code payment, ICBC QR code payment is completed by the bank's “melt e-link” APP scan code. The difference is that the ICBC two-dimensional code payment process mutates the original card number and hides the real card number information. In addition, Bank of Communications, China Merchants Bank, Minsheng, Pudong and other commercial banks have launched the Bank's two-dimensional code payment products.

2 game

Under the above background, the competition between NFC mobile payment and two-dimensional code payment is inevitable, and the offline acquiring market will be the main field of the game between the two parties. Borrowing the commercial game PARTS analysis framework, which analyzes NFC mobile payment and QR code payment through five elements: Participators, Added values, Rules, Tactics, and Scope. Specifically, in the five aspects of the dominant party, user experience, technical security, promotion strategy, and applicable scenarios, the competitive situation between the two is inferred.

First, the party factor.

In terms of NFC mobile payment, commercial banks, operators, mobile phone manufacturers and card organizations "dance". From the domestic point of view, the business model of NFC mobile payment can be divided into bank-led mode, operator-bank cooperation mode and mobile phone manufacturer-led mode. The first is the bank-led model. This mode uses the bank mobile phone APP as the window, supported by the mobile phone operating system and NFC function. With the card organization “air card issuance” platform, the bank card is downloaded and placed in the mobile phone, and the mobile phone built-in bank card and POS are realized through non-contact sensing. The interaction of the terminal, and then the payment is completed. This mode is represented by HCE products. The second is the mode of cooperation between operators and banks. In this mode, the communication service provider uses the SIM card as a medium to connect to the bank issuing platform established by the card organization, and utilizes the NFC function of the SIM card or the mobile phone to enable the mobile phone to pay online under the POS. Products in this model include "Mobile and Package", "Wo Pay", and "Wing Payment". The third is the dominant mode of mobile phone manufacturers. This model uses the hardware carrier, security technology, user platform of the mobile phone manufacturer, and the card organization trusted service management platform to realize the combination of mobile phone and bank card. Apple Pay and Samsung Pay, which are implemented in mainland China, are representatives of this model.

From a foreign perspective, according to the strictness of financial supervision in different countries, the business model of NFC mobile payment is different. Europe mainly adopts the joint operation mode of multinational operators. Banks only act as partners and do not participate in operational activities. For example, the Spanish savings bank La Caixa cooperates with Telefonica, Vodafone, Orange and Visa Europe. Due to the loose financial supervision, weak credit card dependence, the difficulties faced by banks, and the huge user base of mobile operators, Japan has formed a model in which operators are leading and banks are actively participating. For example, the mobile wallet business "Osaifu-keitai" promoted by Japanese mobile operator TTDCoMo is one of the successful NFC payment technology cases in the world. The United States is similar to China. Commercial banks, communication operators, and mobile phone manufacturers are all pursuing the maximization of their respective interests and leading the development direction of mobile payment.

In terms of two-dimensional code payment, third-party payment and commercial banking “solo dance”. There are two main types of main players for QR code payment. One is a third-party payment company. On the one hand, third-party payment companies complete the payment of funds between individuals and individuals, individuals and small and micro-businesses (self-employed households) through QR code scanning; on the other hand, third-party payment companies infiltrate individuals to pay for traditional Chinese merchants. In the scenario, online payment is performed by placing a QR code on the merchant side or configuring a scan code gun to promote the QR code main scan or the sweep function in the APP on the user side. The second is commercial banks. Calling the advantages of its own corporate customers and personal customers, and simultaneously deploying the layout between the merchant and the client to build a two-dimensional payment environment. At present, there is no card organization participation in the construction of the QR code payment network. The dominant party, either by itself or through agents, develops users and merchants, and uses its own settlement channels to form a closed loop of transactions.

Compare the two. The dominant players in NFC mobile payment are diversified, and the cooperation relationship between them is complicated. The advantages and disadvantages of NFC mobile payment market expansion coexist. On the positive side, multi-party cooperation makes products diversified and resources centralized, and mobile users can obtain diverse choices and multiple benefits. The downside is that market acceptance of different products is inconsistent. Then, there are three factors influencing the user development of the product. One is the user base of the participant itself, the second is the complexity of the product use, and the third is the timeliness of the response coordinated by the parties in the product use. These factors directly restrict the user development of each product, and the market share of the products is very likely to appear from the situation of “crowd-offs”. The dominant party of QR code payment is relatively simple, it is relatively easy to make decisions in product planning and marketing, and has strong control over users and merchants. However, in the process of market development, the dominant party needs to coordinate the resources of the collection and liquidation.

Second, the user experience factor.

In terms of NFC mobile payment, the preliminary preparation is complicated and the transaction speed is guaranteed. For users, NFC mobile payment products are more demanding from installation to use. First of all, there are high requirements for hardware devices. The mobile payment products that are sold in the market by Apple, Samsung, Huawei, Xiaomi and communication carriers are all supported by new or high-end models of designated manufacturers. Second, the installation of mobile payment products requires several steps, including downloading the app, adding a bank card, and verifying activation. In addition, when used, mobile payment products need to be adapted to mobile phones and POS terminals. POS terminals need to support contactless transactions in hardware and software, and require users to unlock, brighten, and fingerprint on the mobile phone.

For merchants, accepting NFC mobile payment products requires multiple preparations for material, human and financial resources. First, coordinate the acquiring institution to transform the cash register system and POS machine to have non-connected modules and procedures. Secondly, due to the large number of mobile payment products, the non-contact acceptance method is different from the previous bank card insertion and card transaction, so it is especially important for the cashier to train in product awareness and product acceptance. Thirdly, because NFC mobile payment products use payment tokenization technology, the card number of the transaction is different from the physical card number, and the business operation procedures such as reconciliation and return should be adjusted accordingly, and targeted training should be carried out for relevant personnel. Finally, bear the same handling fee as accepting the physical bank card.

When offline trading, the mobile phone opens the near field communication function, does not need to connect to the Internet, is close to the POS machine that receives the transaction information, and combines the small amount of visa-free and confidential business, that is, the non-connected online transaction of 300 yuan or less is free of signature and password-free. The speed can be as fast as a few hundred milliseconds.

In terms of two-dimensional code payment, the preliminary preparation is simple and the transaction speed is uncertain. On the user side, the QR code payment must first have a mobile phone with a camera configuration and Internet access function. In the current popularity of smart phones and mobile Internet, most mobile phones meet these two conditions; secondly, download and install Alipay or WeChat. Over the mobile banking and other applications loaded with the QR code payment application, in most mobile phone users' mobile phones, Alipay, WeChat, and mobile banking have become mandatory applications. In addition, the bank account should be bound in the relevant APP. Usually the prompt interface in the APP is very clear, and it is not difficult to complete this step.

Compare the two. On the merchant side, the merchants need to place a two-dimensional table sticker, a card or a scan code gun at the cashier's office to accept the two-dimensional code payment hardware. The software requires the merchant to do the cashier acceptance training. In terms of handling fees, the actual rate is lower than the use of NFC mobile payment products due to the return mechanism.

During the transaction, the user needs to open the APP, connect to the Internet, and scan the code. The time spent in the entire transaction process depends mainly on the quality of the network signal, and the time is from a few seconds to a few minutes. Of course, in the case where communication is guaranteed, most small-dimensional transactions for payment of two-dimensional codes do not require a password, and the transaction speed can be appropriately increased.

In terms of convenience, apart from the high and low factors of using the threshold, both for cardholders and merchants, QR code payment and NFC mobile payment are not divided into Zhongbo. In terms of transaction speed, NFC mobile payment has an advantage over two-dimensional code payment. Based on the cost consideration of the merchant, the investment in accepting the two-dimensional code payment is lower than accepting the NFC mobile payment. Therefore, the average consumer and merchant are more likely to accept two-dimensional code payment; however, consumers with certain knowledge literacy, merchants with a certain scale, are more likely to become the target users of NFC mobile payment.

Third, technical security factors.

In the aspect of NFC mobile payment, it reflects multi-technology and multi-mode features. NFC mobile payment technology core NFC is a short-range high-frequency wireless communication technology that allows non-contact point-to-point data transmission exchange between electronic devices. The technology evolved from RFID radio frequency identification, which is compatible with the Sony FeliCa TM standard and the Philips MIFARE standard. In essence, NFC is similar to WI-Fi and Bluetooth, except that NFC uses a frequency of 13.56 MHz. The near-field payment adopts the card simulation mode. The device with NFC function is equivalent to a contactless card. The user can close the card reader, input the transaction password or receive the transaction, and then complete the payment and collection. In the card analog mode application, it is divided into three modes: NFC full terminal, NFC-SD card, and NFC-SIM card according to the location of the security chip (SE). The NFC full terminal mode is built into the phone hardware in the SE security chip, representing the products Google Mobile and Google Wallet applications. In the NFC-SD card mode, the SE security chip is built into the SD memory card of the mobile phone. Both UnionPay and VISA have tried. However, due to certain defects in the adaptability and standards, they are not respected. The NFC-SIM card mode SE security chip is built in the SIM card of the mobile phone. Because the security factor of the SIM card is high, and the communication operator has strict requirements for auditing and card issuance, the security is well guaranteed, so it is the most recognized and mainly in the world. A respected near-field payment model. Near-field payment is also tightly integrated with Payment Tokenization. The payment tokenization technology was released by the international chip card standardization organization EMVCo in 2014. The principle is to use the payment token instead of the bank card number for transaction verification, thus avoiding the risk of the card number information leakage.

In terms of two-dimensional code payment, a single-technology multi-information attribute is presented. The two-dimensional code uses a certain geometric figure to distribute black and white graphics in a plane, that is, in a two-dimensional direction, according to a certain rule, to record data symbol information. In the code preparation, the concept of “0” and “1” bit stream of the internal logic of the computer is skillfully utilized, and several geometric shapes corresponding to binary are used to represent the numerical value information of the text, and the image input device or the photoelectric scanning device automatically recognizes Read to achieve automatic processing of information. In short, the QR code uses several geometric shapes corresponding to binary to represent literal numerical information, convert the information into binary geometric shapes, and generate a matrix map. After the QR code is generated, an infrared probe is generally used to capture the graphic and decode it with a dedicated decoder. QR code payment is a combination of two-dimensional code technology and mobile payment technology. Scanning the product QR code can be completed through the mobile phone channel provided by the bank or third-party payment, which is a bridge between the physical goods and the mobile application software. Widely used in the field of O2O e-commerce.

Compare the two. At the technical level, the QR code is an open coding method that only provides the information carrying function. It is easy to be copied and falsified. It is easy to be used by criminals to include Trojan viruses. After scanning, the mobile device will automatically download the Trojans and trigger information. Leak, intercept SMS, deposit stolen and other events. If the mobile phone is lost or stolen, others can use the QR code to pay after unlocking the mobile phone, and the funds account bound to the QR code payment is in danger of being stolen. NFC mobile payment is based on physical carrier, with hardware encryption, plus payment tokenization, fingerprint and other identity authentication technologies, which are safe and reliable, and the user's personal sensitive information is not easily stolen.

At the security level, QR code payment is a one-way interaction, and security is the top priority of the work.

At the regulatory level, the NFC mobile payment products are consistent with the risk management of the physical financial IC card, and the QR code payment has been suspended due to security issues. Currently, there is no uniform standard, but the follow-up should be subject to the regulations of the regulatory authorities. On August 3, 2016, in the “Payment Payment Service Specification” (Draft for Comment) of the China Payment and Clearing Association, the generation and acceptance of the QR code were carefully defined, and a single bank account or all payment accounts for the same customer were required. Set the daily cumulative trading limit to control risk. It can be seen that NFC mobile payment has advantages over two-dimensional code payment in terms of payment security and payment limit. In the department stores, hotels, automobiles, real estate and other merchants, thousands of transactions, tens of thousands of transactions, mobile users will choose NFC mobile payment.

Fourth, promote strategic factors.

In the aspect of NFC mobile payment, it reflects the coordinated operation. NFC mobile payment products are jointly developed by commercial banks, operators, mobile phone manufacturers and card organizations. Therefore, product promotion is coordinated by many parties. First, all parties invest their own resources and use their own propaganda channels to recommend products to their own users. If the operator chooses to enter the social group as the target customer, it will promote the development of NFC-SIM users. Commercial banks will choose young and middle-aged credit card customers as their target customers, and use WeChat and SMS to push event information to attract customers to use mobile payment products. Second, multi-party integration of resources, joint marketing for users or merchants. For example, the issuing bank and the card organization integrate marketing expenses and marketing channels, and select well-known chain merchants to carry out cardholder preferential activities or merchant cashier incentive activities. The third is to broaden the channels of cooperation. For example, banks, card organizations cooperate with acquiring institutions or specialized service organizations to promote the popularization of mobile payment products among the merchants they maintain, so that merchants can improve the acceptance level of mobile payment products and recommend consumers to use mobile payment products.

In terms of two-dimensional code payment, it appears to be single-handed. Two-dimensional code payment products are generally developed by a single-party payment enterprise or a commercial bank, so the marketing is carried out independently by one party. There are two main types of promotion methods. One is to carry out marketing activities on the user side and the merchant side. For example, the scan code is randomly reduced or reduced, and the cashier is rewarded according to the number of transactions accepted by the QR code. The second is to expand the merchant through the agent, add the QR code payment module to the agent's machine, and provide the agent with a price-paying payment channel, so that the agent can promote the QR code payment product to the merchant.

Compare the two. Although the number and resources of NFC mobile payment products are more than the two-dimensional payment products, due to the wide variety of products, the names and methods of use of various products are not the same, for non-industry It is difficult to understand the difference, which increases the difficulty of promotion to a certain extent. Moreover, the continuity of marketing is short, even though the marketing method similar to the two-dimensional code payment is adopted, the promotion effect is relatively poor. The two-dimensional code payment product model is less, and the acceptance and recognition of users and merchants are relatively high, which is easy to form and exert a word-of-mouth effect, and speed up the popularization.

Fifth, apply the scene factor.

In terms of NFC mobile payment, it is based on terminal intensive work. NFC mobile payment products can theoretically support all POS merchants, and only the POS terminal of the merchant can complete the non-connected transformation. And it reflects the "three no" characteristics, that is, the mobile phone does not need to be connected in the transaction; there is no special restriction on the transaction amount, which is consistent with the physical bank card, and there is no restriction on the merchant industry category, all types of merchants can be opened, in fact, chain supermarkets, department stores Fast food merchants use it frequently.

In terms of two-dimensional code payment, it is based on the network. Two-dimensional code payment has the basis of acceptance in the areas covered by the mobile Internet. There are three types of expandable merchants: one is the brand merchants who need to enrich the payment types to drain customers; the other is that the bank card processing fee is high and the transaction needs to be dispersed. Small and medium-sized merchants who need to solve the problem of non-cash payment but do not install POS equipment and merchants in remote areas. Since the limit of the two-dimensional code payment is set according to the account security level, it is more applicable to the field of micropayment.

Compare the two. The coverage of the mobile Internet is much larger than that of the bank card acceptance network. The merchants are far more than the merchants who have deployed the POS. The small and medium-sized micro-merchants are far more than the high-quality chain brand merchants. Therefore, the application scenario of the QR code payment will be more than that of the NFC mobile payment. However, from the perspective of transaction amount and network environment, NFC mobile payment is more applicable than two-dimensional code payment when large transactions and network signals are weak.

3 inference

Based on the above analysis, the author puts forward some personal judgments here, in order to "bring the bricks to attract jade."

The game of NFC mobile payment and two-dimensional code payment is not a “zero-sum game” but a “non-zero sum game”. Through the study of the Japanese case, the two-dimensional code and NFC have achieved common development, and the operator as the dominant party has fully utilized the strengths of the two payment methods, and each has done its best and complemented each other. In China, the two will coexist in a space of common development. Due to the difference between NFC mobile payment and QR code payment in the participants, user experience, technology security, promotion strategy, and application scenarios, users and merchants will conduct their own “optimal” choices, and the audiences of the two will naturally differentiate.

In the short-term, the QR code payment benefits from the simplicity of operation on the B side and the large number of users on the C side, which will occupy the market faster than NFC mobile payment. From the medium and long-term analysis, NFC mobile payment relies on mature POS acceptance environment and commercial banks, card organizations, operators, and mobile phone manufacturers to continue to promote together, which will be more viscous than high-level users of high-quality merchants. In the whole payment system, NFC mobile payment and two-dimensional code mobile payment play a complementary role, respectively satisfy the needs of different payment groups in different trading environments, and jointly enrich the payment pattern based on bank cards, and jointly improve the bank card penetration rate.

Capital operation and regulatory policies will affect the market development of NFC and QR codes. In the era of "Internet +", Internet projects and enterprises are more likely to get the favor of capital. Internet companies that already have certain strength are keen on operating capital to achieve synergy. The essence of QR code payment is Internet payment. It is bound to the platform user account. It is more innovative than the NFC mobile payment that only binds the bank card account. It can gain more attention from capital and thus have the ability to increase market input. Gain a bigger market share. However, with the expansion of the depth and breadth of innovation in the Internet field, related regulations are becoming wider, larger, and faster. QR code payment will be included in the standard system of bank card payment services in the same way as NFC mobile payment. The development speed of the two-dimensional code payment after the constraint is likely to slow down, and the advantage of NFC payment has the opportunity to further reflect and the development speed is improved.