Recently, Facebook has taken another big step in payment services.
According to foreign media reports: On November 6, Facebook's WhatsApp started to provide payment services in India. Facebook said: Previously they obtained approval from India's leading payment processing agency, and finally were able to launch this long-delayed service in the country.
In recent years, Facebook has made many actions in many businesses, among which the payment field is the focus of its layout. Last year, the ambitious launch of the encrypted digital currency "Libra" (Libra), which is currently the world's largest digital currency project, immediately caused a global sensation. However, due to government opposition to the Libra project, Facebook's ambition was forced to suspend. In the consumer market, Facebook also took advantage of the trend to launch payment services.
will launch a payment service in the Indian market this time. Can Facebook find a gold mine in this blue ocean market? As India’s mobile payment market will become another trillion-dollar mobile payment market after China, global giants have heard the news. With the support of the giants, who can successfully incubate the next payment giant? The payment business of
has landed in India. Facebook wants to seize the blue ocean in the payment market. The social giants
are no strangers to the payment actions. Domestic Tencent is also in the forefront of Facebook in this field.
Relying on 1 billion user traffic and ecological advantages, Tencent’s financial business started from third-party payment, and has now been involved in online payment, wealth management, microfinance and other businesses. The exploration in many financial scenarios has also brought it higher Revenue growth of financial technology business. In the second quarter of 2020, revenue from financial technology and corporate services business increased by 30% year-on-year to RMB 29.862 billion. It is expected that revenue from mutual funds and corporate services in the third quarter will increase by 31% year-on-year to RMB 35.1 billion.
According to the "FinTech Era-Pentium's Ants, Stable Tencent" report released by Guosen Securities, it also specifically mentioned the evaluation and prospects of Tencent's financial technology business. Guosen Securities believes that the reasonable valuation of Tencent's financial technology business is about 1.2-1.8 trillion.
After the "predecessor" Tencent has opened up market growth space in the payment field, Facebook, which has 1.8 billion daily active users, is naturally expected to make a big splash in the payment field. In particular, Facebook has faced the dilemma of declining growth in social advertising revenue. In the third quarter, Facebook’s revenue from advertising business was 21.221 billion US dollars, an increase of 22% compared to 17.383 billion US dollars in the same period last year. Compared with the revenue growth rate of the previous advertising business, Facebook’s ability to attract money in the advertising business has declined, which has affected Facebook’s revenue growth.
is under pressure due to the growth of advertising business, and Facebook urgently needs to open up new growth space. At present, payment services have become the focus of Facebook's high expectations.
In November last year, Facebook announced on its official blog that it officially launched its mobile payment service Facebook Pay. Facebook Pay will be used in the three Facebook-owned applications, Facebook Messenger, Instagram, and WhatsApp, with specific functions including payment, donation, and transfer. After
launched payment services in North America and Europe, Facebook also focused on the Indian market. It is reported that India is one of the largest markets for WhatsApp, with more than 400 million users in India. At the same time, WhatsApp has been able to provide P2P payment services to a limited number of users in India for more than two years, while waiting for regulators Approval to fully liberalize this service.
landed with the approval of the Indian government through Facebook's payment service through WhatsApp. Whether this business can dig out the growth value for Facebook is also highly anticipated. In this blue ocean field to be explored, international players including Amazon, Alphabet, Microsoft, Berkshire Hathaway, Ali, Xiaomi, etc. have already entered the market. Can the Indian payment market usher in new changes? Behind the full support of the
giants, the head pattern has been initially established.10z
India has become an important battlefield for the global technology giants Nuggets, whether it is e-commerce, social networking, payment or games, etc., it is the focus of the giant's layout.
has a population of 1.3 billion in terms of user scale, which is comparable to China. From an economic and financial perspective, this indicates that India is a huge market. At the economic level, India and China have a large gap in total economic output, and a large gap in financial development. But from another perspective, India has great potential for economic and financial development. Especially in 2016, an initiative of the Indian government gave the "green light" to the acceleration of India's digital economy.
On November 8, 2016, Indian Prime Minister Narendra Modi announced that 500 rupee and 1,000 rupee banknotes would cease to circulate. After this move was implemented, online payment in India ushered in a golden period. At present, in the Indian payment market, Google Pay, PhonePe, and Paytm occupy more market shares. Behind these several head payment products, many giants have received financing.
Paytm, the most highly valued unicorn in India,
In April this year, according to Indian media citing people familiar with the matter, Paytm has negotiated with the US technology giant Microsoft, hoping to raise new financing to cope with the increasingly fierce competition in the industry. According to reports, the new $100 million financing is an extension of Paytm's $1 billion fundraising plan launched last year. The valuation of Paytm in this round of financing reached $16 billion.
In November last year, Paytm just completed a $1 billion G round of financing, and both Ant Financial and SoftBank Vision Fund participated in the investment. According to the "Global Unicorn List 2020" released by Hurun on August 7, Paytm has once again become the most highly valued Indian unicorn company with a valuation of US$16 billion.
backed by Google and Android Apps bundled
as the focus of Google’s layout in the Indian payment field, Google Pay has a golden spoon since its birth, not only Google’s cooperation in funding, technology, and product synergy, but more importantly, using Android The ecology allowed it to quickly occupy a lot of market share in India. In July of this year, at the Google For India conference with the theme "Investing in the Digital Future of India", Google announced the establishment of a digital fund in India, which aims to invest approximately US$10 billion in India in the next 5-7 years .
In the unified payment interface ecosystem in India, for a long time, Google Pay under Google has been dominant in the number of transactions, followed by PhonePe and Paytm. These three companies control nearly 95% of the unified payment interface in India. market share.
On February 27 this year, Google Pay submitted financial data for the 2018-2019 fiscal year to the Indian corporate regulator. The company reported that its revenue for the 2019 fiscal year increased by 111.9 billion rupees (approximately US$156 million) year-on-year, a year-on-year increase of 155%. Judging from the performance of this data, the revenue return brought by Google Pay to Google is not low.
PhonePe leveraged Wal-Mart's power to open the market
In March of this year, PhonePe, the Indian payment platform of Wal-Mart's e-commerce Flipkart, announced that it had received a new funding of US$60 million. The investor was its parent company, PhonePe Private Limited. PhonePe's four previous investments were: approximately US$103 million raised in March last year; approximately US$97 million raised in July; approximately US$57 million raised in October and approximately US$81.7 billion raised in December. According to a report by Morgan Stanley, PhonePe is currently valued at approximately US$7 billion, and its net income in fiscal year 2019 increased by 401%, while net loss increased by 141%. Although its revenue in fiscal year 2019 reached Rs 2,458 crore, it had a loss of Rs 19,047 crore.
Judging from the competition of this head payment player, there are giants behind it that are contributing money, which also allows them to quickly gain a foothold in the Indian payment market. Each has its own advantages in terms of technology, capital, and scenarios.
In the global capital market, some leading giants and many unique players have emerged in the field of digital paymentbeast. In particular, China and the United States have taken the lead in the payment field, and Paypal and Ant Group have both obtained high valuations in the capital market. As of now, Paypal's after-market share price is US$186.11, and its market value is US$216.435 billion.
Judging from this valuation performance, it is not difficult to see that India is also expected to give birth to a giant with a larger market value in the digital payment field. According to a report released by the research and consulting agency RedSeer, the scale of digital payments in India for the fiscal year 2019-2020 is 2162 trillion rupees, and the number of users using mobile payments is around 160 million. RedSeer predicts that by 2025, the scale of digital payment in India will reach 7092 trillion rupees, and the number of mobile payment users will be close to 800 million.
is just that despite the huge room for future development of the Indian payment market, the recent introduction of a new policy by the Indian government has brought obvious "resistance" to third-party payment companies.
The Indian payment market is changing. With the support of the giants, who can hatch the next "Paypal"?
According to the Financial Associated Press: The latest dispute stems from a statement issued by the National Payment Corporation of India on Thursday, announcing that from January 1 next year, the total amount of transactions made by third-party payment applications using its unified payment interface (UPI) system The number cannot exceed 30% of the total transaction volume of the system. As soon as the news came out, it was not a small shock to the payment business of Google, Wal-Mart, and Facebook in India.
According to the data of the National Payment Corporation of India, the UPI system processed a total of 2.07 billion transfers in October this year. Among them, Wal-Mart’s PhonePe share slightly exceeded 40%, Google Pay ranked second with a weak disadvantage, and dozens of other platforms such as Paytm combined. A total of about 20% of the share. Limited by the transaction amount, which means that they are also framed in the transaction volume.
It is worth mentioning that this new regulation clearly restricts "third-party payment institutions". Payment platforms with digital banking licenses such as Paytm and Reliance Industries' Jio Payment Bank are affected by this regulation. In addition to Google and Wal-Mart, Facebook, which has just been approved to launch its payment business in India, will also face this rule restriction.
Judging from this new initiative in India, it is not difficult to see that its intention is also to support local companies to better develop in the field of digital payment. Under the influence of this policy, the future development of Google, Wal-Mart, and Facebook is bound to be greatly developed, especially as India's digital payment is currently in a period of rapid development. Can these giants usher in the "loose" policy? The follow-up will also determine how much market share they can occupy in the future.
Source of this article: US Stock Research Society (Public Account: Meigushe)
