Cell phone manufacturers to enter the mobile payment circuit, not a new thing.
Compared to Huawei and Xiaomi, who have been in the mobile payment business for a long time, OPPO and Vivo are a little late to the party. The cell phone manufacturers layout mobile payment is significant, improve user stickiness, build the ecological chain closed loop, the purpose of all. oppo and vivo naturally refused to miss, the two layout of mobile payment business path is also relatively similar.
OPPO and vivo started in 2019, both started in the field of traffic cards, online "touch on the car" function, initially covering only 10 cities, now covers more than 300 cities. Then, OPPO and Vivo tried to get a share of the third-party payment market.
Both OPPO and Vivo have also extended their tentacles to digital credit cards, trying to provide more financial services for users, build more payment scenarios and a richer ecology, thus forming a complete business closed-loop construction.
"OPPO and vivo with cell phone hardware advantage, hope to grab the mobile payment market, short-term difficult to shake relying on two-dimensional code payment for the mainstream of Alipay and WeChat payment formed by the 'double oligarchy' pattern." A senior industry insiders pointed out that in the future, OPPO and Vivo deep plowing mobile payment track, should seek development from deep plowing scene, ecological build, technology application three dimensions, so as to create a differentiated competitiveness.
As the payment scene is subdivided and diversified, it provides new development opportunities for players, which does not affect cell phone manufacturers to enter the market and grab food in any way.
In 2019, two young players appeared on the track of mobile payment: OPPO and Vivo. in June of the same year, OPPO and China UnionPay joined hands to launch OPPO Pay, a mobile payment product based on OPPO mobile terminals, equipped with NFC function, supporting " Touch to ride", focusing on public transportation and other payment scenarios.
In September 2019, Vivo joined hands with China UnionPay to launch a mobile payment product, UnionPay Mobile Flash Pay - vivo Pay. Since then, users of NFC-enabled Vivo cell phones can simply bind their UnionPay cards in the Vivo wallet client, which can be used in public transportation, subway, restaurants, superstores, convenience stores and other scenarios without network access by double-clicking on the power. The NFC-enabled Vivo Pay can be used in public transportation, subway, restaurants, supermarkets, etc. by double-clicking the power button to quickly wake up Vivo Pay and realize "one flash to pay".Despite their new arrival, OPPO and Vivo seem to be unwilling to show their weakness easily.
Since its launch, OPPO Traffic Card has been used in nearly 400 cities, and OPPO Pay supports "touch" tag payment, card code payment, online payment, etc., covering 50 million merchants and nearly 3 million card users.
The person in charge of Vivo told the Times that Vivo Pay is now available in more than 300 cities, including Beijing, Shanghai, Xi'an and Shenzhen.
"At present, mainstream cell phone manufacturers such as Apple and Huawei provide payment functions, and if vivo does not have it, it may affect the user's experience and purchase choice." The person in charge of vivo told the Times that the reason why vivo Pay cut into the mobile payment track from the field of traffic card is, on the one hand, to improve user stickiness and compete with other mainstream manufacturers at the same time; secondly, payment is a good contact point to enhance the trust of vivo users in the cell phone APP, as a way to provide more financial services and solutions to users.
Accelerate forward on the road, vivo, OPPO and successive layout of third-party payment track.
In August 2021, Vivo submitted a trademark application for "Vivo Card" to the State Intellectual Property Office. In December 2021, OriginOS, a new generation of Vivo's operating system, was released with the "Super Card Package" function, which integrates the functions of sweep code, WeChat payment code, Alipay payment code, WeChat sweep, Alipay ride code, etc., to achieve a real sense of one-click payment. It can realize the real sense of one-click payment.
In October 2021, OPPO joined hands with Guangfa Credit Card to launch Guangfa OPPO Card, which combines the convenient payment function of bank credit card with online digital rights and offline credit card rights, and provides benefits such as video website membership quarterly card, and OPPO Pay payment cashback and other card benefits, covering clothing, food, housing, transportation and other life scenarios. In the long run, for the mobile phone manufacturers, it is a good idea to use the credit card.
In the long run, for cell phone manufacturers, aiming at the mobile payment track, or intended to build a payment ecology based on smartphone terminals, so as to form a business closed loop. vivo executive vice president and chief operating officer Hu Baishan has publicly said that ecological development requires a mature process, such as an APP function from promotion to active, also need to spend 3 to 6 months, for vivo For Vivo, we won't say that we have to pursue a large scale at the beginning, but we hope to do a better job in cultivating the ecology of the industry.
How can the up-and-comers break through?
Currently, the mobile payment market continues to grow rapidly.
In the past 10 years, mobile payment has grown from an emerging payment method to one of the most accepted and frequently used payment methods by the public.
Driven by multiple factors such as the urgent need for digital upgrading of small and medium-sized enterprises, China's third-party payment industry is expected to see better development. iResearch Ariadne statistics show that the third-party payment market is developing at a rapid pace, with the total scale of mobile and Internet payments reaching 271 trillion yuan in 2020 and expected to reach 489.2 trillion yuan in 2025.
For cell phone manufacturers, it is natural that they do not want to easily miss the market with such a huge space. In the long run, the significance of mobile payment is not only to "abandon cash", but also to improve the financial services ecosystem, which will bring more space.
As early as September 2019, Vivo senior vice president Shi Yujian said in the cooperation with UnionPay, at that time, Vivo cell phone global online users have exceeded 250 million, and China UnionPay is Vivo's first partners, the official commercialization of Vivo Pay represents the Vivo wallet layout gradually landed, Vivo will subsequently bring more financial services to the Vivo wallet.
At the beginning of the establishment of OPPO Pay, Duan Yaohui, vice president of OPPO and president of Internet Business Division, also said publicly that the official release of OPPO Pay is the beginning and foundation of cooperation between OPPO, China UnionPay and various banks in the field of financial business.
However, the two payment giants, Alipay and WeChat, have basically completed the competition for consumer users and occupy half of the third-party market. In the cell phone manufacturers, Apple Pay appeared as early as 2014, Xiaomi and Huawei also launched mobile payment in 2016. oppo and vivo 2019 to enter the mobile payment market, is tantamount to "tiger mouth to take food".
"The competition in the field of payment is essentially ecological competition, whether Alipay or WeChat payment behind the C-sided multi-dimensional scene layout, capturing the minds of users." According to Hu Jing, senior analyst of financial industry of ECOSYS, although cell phone manufacturers rely on their own hardware technology power to NFC payment method "snatch" part of the user, but from a short-term perspective, cell phone manufacturers are difficult to shake the existing market pattern.
But for cell phone manufacturers, a share of the pie in the payment track, with the importance of not negligible. In a conference call following the release of its Q3 2019 earnings report, Apple CEO Tim Cook revealed that Apple Pay can complete close to 1 billion transactions per month. The latest data from data comparison site Trading Platforms, meanwhile, shows that Apple Pay has become the second most popular digital payment system in the world, processing more than $6 trillion in transactions annually.
Reflecting its performance, Apple's services business, including the Apple Pay business, has seen explosive growth over the past few years. in fiscal year 2021, Apple's services business net sales reached $68.4 billion, up 27% year-over-year and 47.8% compared to 2019.
So how can OPPO and vivo, as latecomers, break the game? Hu Zhenhua said that OPPO and vivo should start from three dimensions, such as deep plowing scenes (accurate user scene insights), ecological building (value empowerment, win-win cooperation), and technology application (meta-universe, VR/AR, digital RMB, blockchain and other emerging technologies), so as to create differentiated competitiveness.
In addition, avoiding the fierce domestic competition in the payment industry, OPPO and Vivo may also have breakout opportunities in the future by relying on the huge number of overseas users. According to market research firm Canalys, in 2021, OPPO and Vivo ranked fourth and fifth respectively in terms of global market share. vivo announced at the end of 2021 that the number of its global users had exceeded 400 million; recently, OPPO announced that the number of Color OS global monthly active users had exceeded 500 million.