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Online payment solution in Chinaby
Summary
• Payment Gateway vs Third Party Payment
• Stakeholders of Payment Gateway in Asia
1
2
Payment Gateway vs
Third Party Payment1
Payment Gateway vs. Third Party Payment
What is a Third Party Payment
lower setup fees
fixed monthly
costs
charge a higher
discount rate (as much as
5.5%).
cheaper for very small business
(<$5000/ month)
• A Third Party Processor does not require its merchants to obtain a merchant account, so they are able to start processing transactions much quicker
• The initial costs may seem cheaper
• The fees which are charged are higher
• Less expensive in the short term and that is why so many new online businesses choose to start with some of them like PayPal.
• Their name shows up on the customer’s credit card bill
• They are responsible fraudulent transactions
Example of fees(PayPal)
TRANSACTION FEE FOR ONLINE PAYMENTS
(based on monthly sales)PayPal fees
$0 to $3,000 2.9% + $0.30 per transaction
$3,001+ to $10,000 2.5% + $0.30 per transaction
$10,001 to $100,000 2.2% + $0.30 per transaction
$100,001+ 2.2% + $0.30 per transaction
Deal Flow Rate Term of service
0 - 60k 1.20% 1 year
60 - 500k 1.00% 1 year
500k – 1M 0.90% 1 year
1M – 2M 0.80% 1 year
2M - X 0.70% 1 year
Example of feesAlipay
Payment Gateway vs. Third Party Payment
What is a Third Party Payment
How Third Party Payment Works(escrow)
Buyer pays with Alipay
Alipay tells the merchant that the
money is here
Merchant delivers the product
Payment is released after buyer confirms delivery
1 2
3
4
Payment Gateway vs. Third Party Payment
What is a Third Party Payment
MerchantConsumer
3rd PP
• E-commerce application who provides the interface between your website/computer and your Merchant Account Provider, with a direct integration.
• The equivalent of a physical point of sale terminal located in most retail outlets.
• Payment gateways protect credit card details by encrypting sensitive information, such as credit card numbers
higher setup fees
monthly and
up-front costs
lower discount and per-
transaction rate
Cheaper for bigger business
(>$5000/Month)
Payment Gateway vs. Third Party Payment
What is a Payment Gateway
Example of fees(Eway - Australia)
Annual Fees Eway fees
$399(5free transactions/month)
$0.60 per transaction
$799(200 free transactions/month)
$0.40 per transaction
$1499(400free transactions/month)
$0.22 per transaction
Payment Gateway vs. Third Party Payment
What is a Payment Gateway
How Payment Gateway Working
User places order
Merchant’s Web Server
Payment Gateway
BankMerchant
Request payment Gateway
Request to Bank
BankResponse
Money paid to Merchant
Payment GatewayResponse
Server Response
Payment Gateway vs. Third Party Payment
What is a Payment Gateway
Stakeholders of Payment Gateway in China
2
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in China
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
Global
Alipay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
Alipay
• China’s leading third-party online payment solution
• More than 550 million registered users
• 8.5 million transactions daily.
• Provides an escrow payment service
• Provides payment solutions for Taobao and Alibaba.com, and more than 500,000 external merchants for online retail, virtual gaming, digital communications, commercial services, air ticketing and utilities fee payment transactions.
• Partners with more than 65 financial institutions, including 19 leading national and 45 regional banks across China, as well as Visa and MasterCard.
• Facilitates offline value-added services through a strategic partnership with China Post, which has coverage of rural areas and university campuses.
Alipay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
Alipay
Deal Flow Rate Term of service
0 - 60k 1.20% 1 year
60 - 500k 1.00% 1 year
500k – 1M 0.90% 1 year
1M – 2M 0.80% 1 year
2M - X 0.70% 1 year
Prepayment Deal flow Term of service
¥600 60k1 year
¥1,800 200k1 year
¥3,600 450k1 year
Deal flowrates
Subscriptionrates
Tenpay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
Tenpay
• The website must be located in mainland China and your site shall be filed with the authority
• The main competitor of Alipay.
• Developed by Tencent which owns the most popular IM in China – QQ with more than 300 million users.
• More than 200,000 shopping websites accept Tenpay.
• Compatible with the e-banking service of major domestic bank.
• Users can use Tenpay to send payment/ Receive payment• Withdraw money to bank account.
• Use to charge mobile, deposit money to game account, and buy air ticket.
• Provides an excellent payment platform to corporate users, covering B2B, B2C and C2C areas.
Tenpay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
TenpayPrepayment Deal flow
Fee Rate of Excess Part
Term of service
Suitable Commercial
Clients(Average monthly trade
volume)
¥480 50k 1% 1year <¥5,000
¥1,680 200k 1% 1year <¥20,000
¥3,750 500k 1% 1year <¥50,000
¥7,000 1m 1% 1year <¥100,000
¥12,000 2m 1% 1year <¥200,000
¥25,000 5m 1% 1year <¥400,000
¥45,000 10m 1% 1year >¥500,000
99Bill
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
• The website must be located in mainland China and your site shall be filed with the authority.
• Has over 80 banking or financial institutions with over 300 access points.
• Has over 1.1 million merchant partners that span 20 industries, including travel business, insurance, online shopping, logistics, clothing and education.
• First to provide these merchant partners with innovative services like no-card credit card payment, large-amount online payment support and IVR voice payment.
99Bill
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
Payment category Register or not Fee/Rate
Bank card payment No 1%(0.01yuan minmum)
99bill account payment Yes 1%(0.01yuan minmum)
Telephone bank payment
No1%(0.01yuan minmum)
Offline payment No ¥1 each
China UnionPay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
• The only bankcard organization in China. Three in ten cards worldwide are a Union Pay Card
• English gateway
• 48h approval
• No China entity required
• No china bank account required
• Flat low service rate.
China UnionPay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
Merchant Location China
Discount Rate Rates from 0.7%
Activation Fee $250.00
Monthly Account Fee $25.00 USD per month
Transaction Fee From 5 cents USD per transaction
Rolling Reserve 2% of gross volume*
Payment Currency ¥ CNY (RMB)
Settlement Currency ¥ CNY (RMB)
Settlement Timeframe From every 2 days
Cards Accepted Chinese debit cards and credit cards
Integration Method Hosted sales page (https post) / Various
China PNR
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
• Set up in shanghai in 2006
• Its founder was the former high level executive from China UnionPay
• Focus on financial payment and industrial chain Payment
•Specialized in Financial Fund, airline travel, and gaming industries
Yeepay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
YeePay Advantages• All-In-One Total Solutions for Online, Mobile, Telephone, POS.• Value-Added Services including Financial & Marketing Tools.• Customized Vertical Solutions for Industry Specific Applications.
Products & Services• Online Payment (Gateway & Virtual Account/e-Wallet)• Mobile Payment (Flexible Billing: In-App, Pay-Per-Play, Subscription)• Telephone Payment (Call Center-based Solution)• Point-of-Sale Terminal Payment (Retail)• Multi-card support: Bank Cards (Debit/Credit) + Universal Prepaid Cards• B2C, B2B, C2C Support• Credit Payment Service
Major Verticals• Online Shopping (eCommerce)• Digital Entertainment (Gaming)• Air & Travel• Telecom & Mobile• Education• Insurance• Logistics
Certification/Membershipe-Payment License(Issued by People’s Bank of China)Member of China Payment and Clearing AssociationNational Information Security CertificationPayment Card Industry Security StandardsISO/IEC 27001:2005
Yeepay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment Gateway in Asia
Payment category Fee/Rate
Online payment 1%
Easyown rechargeable phone card
1%
Jcard 1%
L’Atelier Management Consulting (Shanghai) Ltd.Cloud Nine Plaza, 9/F 1118, West Yan'an Road | 200052 Shanghai | ChinaT 86 21 62 81 85 33 | www.atelier.net | [email protected]