What Can Alipay Get Into Entity Stores In Cooperation?

The electricity business has been expanding for more than ten years. Although the volume of pactions is nearly 2 trillion, it accounts for only 10% of the total retail sales of social consumer goods. What is the driving force for expansion?

Therefore, only online offline providers are crowned as "traditional electricity providers".

As a result, Ali, Tencent, Baidu, Amazon and other business tycoons have stepped up the offline layout. O2O has become the hottest word in our commercial market.

What is the core of O2O? Of course, payment! Payment is not only the core link of O2O, but also the key node of all businesses.

Payment based members are truly active members; payment based links are truly effective links; large data based on payments are truly valuable data.

Therefore, the dispute between payments among giants has always been a sign of red handed, bayonet seeing blood, taxi driving and fast taxi fighting. It not only makes people see the cruelty of "Chinese style" competition, but also makes people see the importance of payment to giants.

Alipay's "future plan", Tencent WeChat's "Smart Life", although there are disputes about the entry, the dispute of scenes and the experience, but in the final analysis, it is the dispute of payment.

Whoever grasped the key link of payment would occupy a more active and advantageous position in the competition. Whoever controls the core of payment can enjoy his life and gain nothing.

At present, Ali's main income depends on selling traffic, drawing royalty and collecting service fees. This kind of property based business model is hard to say advanced, and its aftereffect is also insufficient.

The future is likely to come from cloud computing and big data services. Once this idea becomes a reality, when cloud computing and big data become the infrastructure of water electric oil, Ali can become "virtual government", and can "collect taxes" just like the Inland Revenue Department, which of course is a leap from "selling electricity meter" to "collecting electricity charges".

All these need to rely on Alipay to attack the city and put more offline markets into their own "sphere of influence". Only by paying more data for more industries and enterprises, can big data and cloud computing move from the laboratory to the market.

Therefore, BAT and other Internet giants have launched a series of dazzling acquisitions, aiming to lay a foundation for big data online.

Taobao has just released a new strategy to build a life circle, including goods and services.

In the old laugh, the focus of its efforts is still online, and the core is, of course, payment.

Old smile has always believed that Alipay is Ali's "greatest invention", and is Ma Yun's "unique weapon" in the fierce competition in the electricity supplier market.

Alipay not only made Ma Yun's today, but also decided the future of Ali.

Once Alipay is online and everywhere, it will take root and spread to the same level as UnionPay card. Then Ali will become a real big Mac.

A few months ago, "Teng million" electricity supplier held a press conference soon, the three party cooperation, Wanda mainly play the advantage of the offline business circle, Baidu mainly contributed to big data, Tencent mainly paid the money to pay for it, the old laugh immediately wrote a commentary, "if there is no self payment, Wanda O2O or working for Tencent", it was suggested that if Wanda did not push its own payment, although 70% of the holdings would be only financial investment, Tencent would pay more money to get more offline users, and get a good opportunity to promote fortune online, and the 15% share would be a beautiful strategic investment.

This year's "double 12" cooperation with many offline stores is only a speed increase under the layout line of Ali, promoting the extension of Alipay.

From this we can see that Ali will not leave too much time for competitors. As Alipay enters more offline stores, the scope of enclosure will be wider and wider. Once a certain level is reached, Wanda and Xiaomi can only enjoy their own "one mu three points" even if they launch their own payment.

Of course, with the offline entity store, Alipay can not only "enclose" for Ali, but also "money". The cash flow and capital precipitation it will bring will be very impressive. It will greatly help Ali to accelerate the development of Internet finance. After entering the capital operation, it is not surprising that several times and tens of times of high yield have been derived.

Cooperation with offline stores is much cheaper than beating 5 hundred million, and the cost is much lower and the revenue is much higher.

What can a physical store get in cooperation?

If Alipay enters the store only to benefit Ali, it is indeed the latter who is "married" for the former, not for cooperation and win-win, but not for "a match made in heaven".

In fact, the benefits of physical stores are obvious.

Since its launch in December 2004, Alipay has gone through 10 full years, and has grown into a platform for payment of various life scenes including payment, pfer, financing, payment, air travel, movies, etc., with more than 300 million users worldwide and nearly 200 million of Alipay mobile wallet users.

It is understood that Alipay users are mainly post-80s, accounting for over 3 after 90.

In those days, who hasn't a Alipay? Although many young people and even middle-aged and old people are keen on online consumption, people's consumption behavior is more of a compound consumption, sometimes online, sometimes online.

Opening Alipay in a physical store helps catch those temporary consumption. You may forget your wallet while you are away from home, but it is very unlikely that you will forget your cell phone.

For young customers, Alipay is more popular and convenient. Things are good.

Secondly, it can reduce cash usage and reduce the cost of credit card.

More cash, more time and effort to go to the point, still afraid to receive counterfeit money, there are security risks, a lot of trouble.

In contrast, Alipay mobile phones are much cleaner and more environmentally friendly.

The key is to save credit card fees.

UnionPay cards are not only incompetent, but also black hearted in online payment and mobile payment, but Alipay is not competent.

According to the current "income distribution method for interbank pactions of bank cards in China UnionPay network entry institutions", the settlement fees for bank card collection business are all borne by merchants, with rates ranging from 0.5% to 4%.

Generally speaking, the retail credit card fee rate is between 0.8-1%, the supermarket is 0.5%, and the catering industry is 2%.

Nnd, how black it is! The company that laughs at the biggest store sells 1 billion 600 million last year. Do you know how much it costs? About 6000000! This is a net profit! It's not easy to earn over 600 yuan in this year. How hard is it to compress 6 million of the expenses?

As far as I know, in a three line city like Yichang, the department store's credit card consumption accounts for about 6 percent. It is estimated that the proportion of the second tier cities is even higher. If people brush their phones instead of UnionPay cards, how much money do they have to save?

It is said that with this year's "double 12" cooperation with Alipay, the family, the convenience store, the Century Lianhua supermarket and other enterprises, all the goods paid by Alipay are all half price, which is very large and attractive. It is indeed an opportunity to gather popularity and enhance sales.

But if it is not for the big local tyrants such as Ali to subsidize them, how many businesses are willing to lose money? In addition to the expansion of customers, with the help of Ali's platform and hype, it will be possible to drain the shops under the line.

In short, Alipay's entry into the physical store is beneficial and harmless to both sides. For Ali, it is a strategic layout, while the meaning for the physical store is at the tactical level.

But nowadays, it is too rare to collect and sell fees and reduce fees. If you encounter it, you must cherish it. You don't have to ask Ali for the same high yield. You are probably a giant.