BiliBili (hereinafter referred to as "station B") has recently obtained an Internet payment license, which has aroused market speculation about its impact on the company's business. According to Ningbo public resources trading center, 65.5% of the state-owned equity of Zhejiang Yongyi electronic payment Co., Ltd. (hereinafter referred to as "Yongyi payment") was successfully auctioned by Shanghai Kuanyu Digital Technology Co., Ltd. (hereinafter referred to as "Kuanyu digital") in the public auction on November 19. Wide entertainment digital is one of the main companies of station B. Kwai Mei, tiktok, HUAWEI and other Internet technology companies, and short video platforms like jitter and fast hands have all been laid out before the payment. According to industry analysis, in the context of WeChat payment and Alipay's absolute market share, the payment license can reduce the dependence on the third party payment institutions, but the cost of operating the payment business is very high. The more important consideration of the major platforms is regulatory compliance. Station B also provides payment services According to the above announcement, the transaction price of 65.5% state-owned equity paid by Yongyi is 117.9655 million yuan, which is consistent with the starting price. Before the equity auction, the auction consignors Yuyao China Plastic City Group Co., Ltd. and Yuyao China Plastic City Logistics Co., Ltd. held 56.5% and 9% respectively, both of which were controlled by Yuyao SASAC. According to public information, Yongyi payment was established in July 2011 with a registered capital of 100 million yuan. It obtained the payment business license issued by the people's Bank of China in June 2012. It is the only enterprise in Ningbo that has obtained the payment business license, and its business scope covers the whole country. According to the measures for the administration of payment services of non-financial institutions, the validity period of payment license and each renewal of non-financial institutions are 5 years. This also means that Zhejiang Yongyi will face license renewal in June 2022, only about 7 months from now. Kwai Chung and the tiktok were awarded the payment license in September and November last year through the acquisition of the Yi Yi Bao and Yi Lian payment. Since 2016, Xiaomi, meituan, vipshop, Gome, Didi, Ctrip, pinduoduo and Huawei have all arranged the payment business. Station B is also ready. According to the information of the government service platform of the Ministry of industry and information technology, in January this year, the ICP filing website domain names "bilibilibilipay. CN" and "bilibilibilipay. Com" submitted by Shanghai magic Information Technology Co., Ltd. (hereinafter referred to as "magic technology") were approved. Magic technology is the main business operator of station B. Earlier last November, station B publicly recruited talents in the payment field. The requirements for candidates include "responsible for wallet design and overall planning of payment related products, R & D of core technology of station B payment platform", etc. Insiders told China first finance that the layout of payment business by Internet or technology companies is partly due to the need to reduce costs. Taking station B as an example, the businesses involved in payment mainly include the recharge purchase of "B currency" and "shell". The former is used to purchase virtual goods and value-added services in the station, and the latter is the income of up owner. In addition, some physical goods also need to pay for the purchase of services. Currently, the alternative channels include Alipay, WeChat payment, UnionPay, Hua Bai, Netcom payment and QQ payment. According to the financial report data, the service fees paid by station B to third-party payment institutions in the past three years were 10.8 million yuan, 26.8 million yuan and 42 million yuan respectively, showing an upward trend year by year. Kwai's earnings report also showed that the company achieved 36 billion 200 million yuan in the first half of this year, an increase of 42.8% over the same period, while the payment fee for the same period was about 680 million yuan, up 58% from the 430 million yuan in the same period last year. Tiktok has tiktok payment in the electricity business service, and is tied with WeChat payment and Alipay. Jingdong, the US group and vip.com have their own payment channels to bind the bank card payment. The Kwai is still relying on the third party payment cooperation. The purpose of regulatory compliance is stronger The aforementioned insiders said that although various platforms can reduce their dependence on third-party payment by obtaining payment licenses, and then reduce part of the service fee expenditure. However, because the operation cost of payment business is high, the effect of fee reduction will not be great, and the possibility of expanding the profit of payment business is also low. Up to now, Alipay and WeChat still occupy the absolute share of the domestic payment market, but from the two earnings data, it is not easy to pay business profits. According to the third quarter report of 2021 released by Tencent on November 10, when the company's revenue (142.3 billion yuan) increased by 13% year-on-year, the net profit decreased year-on-year for the first time in nearly 10 years. Among them, the revenue of financial technology and enterprise services in the third quarter was 43.317 billion yuan, a year-on-year increase of 30%, accounting for 30% of the total revenue; However, the cost of the business also increased by 29% year-on-year to 30.955 billion yuan. In this regard, the company said that it was mainly due to the transaction costs arising from the increase of relevant transaction amount and the continuous investment in cloud computing professionals and operations. This also means that the overall gross profit margin of the payment based business is still less than 30%. It can also be seen from the prospectus previously disclosed by ant group that the payment business plays a greater role as an entrance to ant group. The proportion of digital payment, merchant services and digital financial technology services from January to June 2020 is 35.86% and 63.39% respectively, corresponding to the revenue of 72.5 billion yuan in the same period, and the revenue related to payment is about 25.9 billion yuan. In the same period, Alipay's net profit was only 313 million yuan. "B station does not have the cost advantage of WeChat and Alipay, and the cost of operating and paying business will be even higher." financial industry sources said that compared to the profitability considerations, the current major platforms have entered into the payment of licences, and the purpose of regulatory compliance is stronger. In recent years, supervision has frequently stressed the importance of licensed operation of financial business. In the regulations on non bank payment institutions (Exposure Draft) issued by the central bank in January this year, it is mentioned that payment institutions should strengthen corporate governance requirements and implement all-round and whole process supervision in accordance with the principle of "certificate before license". Since 2017, the notice on standardizing payment innovation business, bar code payment business specification (for Trial Implementation), technical specification for security of aggregate payment and other documents have been released successively. The "two clearing" mode of e-commerce platform (for example, customer funds are transferred to the network platform account first, and then settled by the network platform to the secondary merchants of the platform) provides users with recharge The E-wallet business of payment accounts with payment functions such as consumption and withdrawal, as well as aggregate payment, have entered the regulatory field of vision. The above financial industry insiders also said that in the future, with the further promotion of digital RMB, the income of third-party payment platforms may be compressed, the importance of personal accounts will be reduced, and the value of payment licenses will shrink. (Xinhua News Agency)