(a) advantages

1. Advantages of traditional banking

Easy to pay. Compared with traditional payment methods such as credit cards and checks, the new third-party payment method introduced by Ant Financial is more convenient, and almost all payment activities can be completed by carrying a mobile phone with you.

(2) Improve payment efficiency and reduce transaction costs. Different from the traditional "customer-bank" model, Alipay establishes contact with several commercial banks instead of customers, and realizes the settlement of a large number of small transactions within Alipay through secondary settlement, which improves the payment efficiency and reduces the payment cost.

(3) Low threshold and wide range. Alipay's entry threshold is much lower than that of traditional banks, which makes up the gap of traditional payment to some extent, provides opportunities for small and micro enterprises and creates conditions for personal payment.

(4) Financial supervision is relatively loose. Traditional banks are limited by the high-intensity supervision of the China Banking Regulatory Commission, and cannot reduce the complexity of bank payment in essence. In contrast, unlike the strict policy supervision of banks, Ant Financial saves most of the audit links, making its business

More convenient.

2. Advantages of competitors in the same industry

(1) The e-commerce platform has strong support. The huge e-commerce market provides Alipay with stable customers and huge transaction volume. At the beginning of its establishment, Alipay quickly opened the market based on the mature e-commerce platform Taobao. After being separated from Taobao, Alipay and Taobao promoted each other and developed together. At the same time, Alipay actively cooperates with other e-commerce platforms, covering almost all e-commerce industries.

Translation direction of English majors

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(2) The means of payment is relatively perfect. Compared with competitors in the same industry, Alipay entered the market early and developed for a long time, and has formed a safer payment process. For example, Alipay took the lead in joining the margin system, which greatly reduced the credit risk in payment.

(3) Wide business coverage. In addition to the payment function, Ant Financial also launched a variety of convenience services. Ant Financial has become a multifunctional platform integrating payment, transfer, fund, insurance, payment and loan. At present, major domestic commercial banks and several international organizations have established in-depth strategic cooperation with Alipay, further enhancing the competitiveness of Ant Financial.

(4) Strong innovation. The first is financial innovation. Ant Financial is shifting its development focus from payment business to internet finance. Yu 'ebao, a new fund wealth management product founded on 20 14, quickly occupied the market, attracting 250 million users and trillions of funds in two years. In addition, many credit platforms, such as Ant Flower Shop and Sesame Credit, have been launched, making up for the blank of credit consumption in China market. The second is technological innovation. From 20 16, Alipay took the lead in introducing bar code payment, which broke the situation that Alipay could only transfer payment. Compared with traditional credit card payment

Payment, bar code payment is faster and more convenient, and the cost is lower, which is deeply loved by merchants and customers. In addition, its means such as face-brushing payment and fingerprint payment are also rapidly popularized in the market, providing it with a continuous competitive advantage.

(2) weaknesses

1. Disadvantages of traditional banking business

(1) Insufficient customer base. As traditional financial enterprises, major commercial banks have a long operation time, a large amount of customers and a large amount of funds, and have a sound financial product trading system and customer information management system, occupying an unshakable leading position.

(2) High financial risk. After years of development, commercial banks have established a mature risk management and control mechanism, and relying on the high-intensity supervision of the CBRC, the financial risks of banks can be well controlled. The financial products launched by Ant Financial are more risky than traditional commercial banks. In addition, the business model of Ant Financial Services is easy to facilitate false money transactions, money laundering and illegal funds flowing into the normal circulation field, and facilitate the concealment of funds.

(3) Limited resources. Most commercial banks in China are state-owned holding enterprises, which are guaranteed by government credit. Their commercial credit is higher than Ant Financial, and they have a mature talent training system, sufficient funds and policy support, and complete technology. As a private enterprise, Ant Financial has limited resources and is difficult to compete with commercial banks.

(4) Single source of profit. The main income sources of Ant Financial Service are service commission and advertising revenue. The income of commercial banks mainly comes from deposit and loan spreads, and they also have all the income sources of Alipay. At the same time, while traditional commercial banks accept third-party payments, they also accept

Payment, ATM payment and other monetary payment methods can be profitable.

2. Disadvantages of competitors in the same industry

As the leading enterprise of third-party payment, Ant Financial is the main imitation object and competition object of enterprises in the same industry. Competitors in the same industry will quickly learn from their businesses and launch new products similar to or even better than the original products in a short time. As the leader of the third payment platform, Ant Financial is difficult to learn from the experience of other platforms.

(3) Opportunities

1. The market is broad and the development space is large.

Compared with the relatively perfect market owned by commercial banks, Alipay still has a lot of room for development. There are 75 1 10,000 netizens in China, 96.3% of whom are mobile phone netizens. Compared with Alipay's 450 million users and Yu 'ebao's 250 million users, its remaining market still has great potential.

2. Industry transformation and strengthening cooperation.

In recent years, due to the changes in the market environment, many large commercial banks have begun to reach cooperation intentions with Ant Financial, hoping to naturalize Alipay as an extended means of payment for commercial banks. At the same time, the cooperation within the third-party payment enterprises is becoming more and more frequent. In the case of intensified competition, there has been a situation of "holding a group to keep warm and * * * developing together".

Challenge (threat)

1. The reform of commercial banks has been accelerated.

In the face of market changes, the transformation process of traditional banks has obviously accelerated. In recent years, due to the support of national policies and the internal reform of commercial banks, their competitiveness has been continuously enhanced. Major commercial banks have successively launched and improved online banking and mobile banking clients, which have stabilized their inherent huge advantages.

2. Increased competition pressure in the same industry.

In recent years, more and more large enterprises collect (merge) military mobile payment through enterprises. For example, China Mobile, Xiaomi, Evergrande and other companies have participated in the competition of third-party payment successively, and the scale of competition is really rare. Although Ant Financial keeps ahead in the competition with its keen business sense, its dominant position has declined in recent years.

3. Financial supervision has been gradually strengthened.

The fifth national financial work conference pointed out that preventing financial risks and strengthening the state's control over the financial market will become the goal pursued in the short term. Under this premise, the advantages of Ant Financial in financial innovation will be greatly reduced, and the original mature business will also be affected.

Second, the development goals of Alipay

1. Face the traditional commercial banks-carry convenience to the end

With the rapid development of network, the payment methods introduced by commercial banks are more and more convenient. In order to maintain the competitive advantage, Ant Financial Platform should not only ensure the security of business, but also make the payment process more convenient.

2. Facing competitors in the same industry-developing their own advantages

(1) Narrow the business scope and divide the key businesses. The mainstream development trend of domestic third-party platforms is to continuously expand business coverage and gain higher market favor. As the business scope of competitors becomes wider and wider, the advantages of Alipay are shrinking. In order to maintain the competitiveness of the platform, Ant Financial has continuously expanded its business at this stage, but the new business has a small audience and is not profitable, which puts it in an embarrassing position. On the contrary, if Ant Financial focuses on developing competitive projects with its good product base, it will be possible to gain a monopoly position in many aspects.

(2) Insist on financial innovation. Financial innovation is the basis for the rapid development of Ant Financial Services. The financial products launched by Ant Financial can always be imitated by other competitors. In order to maintain the competitive advantage, it is still necessary to continuously introduce innovative products. Only by being a leader in the development of the industry can we gain higher market recognition.

(3) Control your own risks. Alipay risks come from many aspects. Ant Financial cannot only pursue market share and profit, but ignore the risks accumulated in development. With the introduction of rules such as setting the purchase ceiling, strengthening the credit management system, and real-name authentication of accounts, Yu 'ebao has been continuously strengthening the risk management and control system.

(2) Long-term goals

The long-term goal of Ant Financial should be to actively guide the market and control the development direction of the industry.

Since 20 16, enterprises relying on the internet have risen rapidly, greatly enhancing the public's dependence on mobile payment. In the emerging industries mentioned above, traditional paper money has been unable to pay, and electronic money has become the only means of payment. The third-party payment platform and the new network enterprises complement each other, which makes the status of "internet plus" rise continuously. Ant Financial takes the lead in developing its own ocean.

The basic database is combined with the platform. Using data analysis, the platform can accurately grasp the key data such as customer consumption demand and consumption affordability, which provides a new idea for the development of the platform.

Third, the third-party payment platform transformation direction forecast

(1) State shares.

1. Reduce financial risks

State-controlled enterprises can accumulate all kinds of talents and reduce man-made technical risks. In addition, the government directly controls enterprises, strengthens supervision, standardizes enterprise operation, makes reasonable investment and operates steadily, which will greatly reduce the investment risk brought by illegal operation of enterprises.

2. Accelerate financial transformation

Virtual currency is one of the new development directions of the world financial system, and its application will be based on mobile payment system. Whether the mobile payment system can develop rapidly and stably is the first problem to be considered in China financial market. The leading state-controlled enterprises in the third-party platform will certainly play a pioneering role in the mobile payment industry, which will not only promote financial transformation, but also increase the competitiveness of the country in the world market.

3. Reform faces challenges

State-controlled private enterprises are a challenge to both sides. For enterprises, how to adapt to the management mode of state-owned enterprises is the most critical issue; For the country, how to maintain the competitiveness and profitability of enterprises under the premise of strengthening management is also a very important issue. In addition, China has been implementing the policy of non-nationalization, and the process of enterprise nationalization is facing severe challenges.

(two) to establish a unified platform to strengthen the autonomy of the internal market.

August 4, 20 17,

The Notice on Transferring Online Payment Services of Non-bank Payment Institutions from Direct Connection Mode to Networking Platform was issued, and the "collection" of third-party payment platforms will be completed soon, which will be brought into the unified management of networking platforms. The network is jointly funded by the third-party platform * * * and belongs to an autonomous organization in the industry. See figure 1 for details.

1. Unified management to prevent vicious competition.

Establishing a unified management platform and improving the communication mechanism between platforms can effectively control the development direction of third-party payment platforms, prevent vicious competition between platforms and commercial banks to the maximum extent, and avoid unnecessary financial risks and economic losses.

2. Convenient unified management and control

Through the network platform, the information between third-party payment enterprises is uniformly controlled, the fund information is strictly controlled, and the flow of funds is monitored to ensure the safe and legal transaction of funds. At the same time, a unified control mechanism is the premise of establishing and perfecting control means and formulating laws and regulations. In the future, the risks of third-party payment platform products will be reduced through complete legal means, and the autonomous system in the industry will be used to supervise and contain each other, which is convenient for national management.

(C) Integration with traditional commercial banks to seek coordinated development

Traditional commercial banks have a large number of customer resources, but limited by the means of bank supervision, the transformation is slow, facing the dilemma of customer loss and negative performance. On the other hand, third-party payment institutions, due to the sharp increase in the number of institutions in recent years, intensified competition during the period, the number of new customers slowed down, and the development speed slowed down. In recent years, major commercial banks have started small-scale cooperation with third-party platforms, and * * * has launched some new Internet products, which are well received by consumers.

Looking at their business direction, third-party platforms mainly focus on micropayments, while traditional commercial banks mainly focus on traditional corporate customers, which is a small and changeable conflict. It can be seen that the two can strengthen cooperation, and even commercial banks can naturalize the third-party payment platform as a sub-business, which indirectly promotes the development of online payment mode.

Through deep cooperation, commercial banks can provide settlement function, strong technical support and effective guarantee for third-party platforms. At the same time, third-party payment can reduce operating costs and create a good payment market for commercial banks. Through cooperation, both sides can achieve a win-win situation.

Four. conclusion

With the rapid development of the Internet, the traditional financial industry has undergone earth-shaking changes, and Internet finance has risen rapidly. As the foundation of Internet finance, the importance of mobile payment is beyond doubt. Although the transformation of traditional financial enterprises is accelerating, compared with the traditional payment mode, third-party payment still has great advantages. If mobile payment can develop rapidly and healthily and turn challenges into motivation, it will definitely cause greater shock to the overall financial market and finally gain a place in the market.