At the same time, the face brush payment, which carries the retail transformation and biometric technology application, has finally gone to the streets by taking advantage of the face brush payment terminal “Dragonfly” launched by Alipay at the end of 2018 after more than five years of R & D and testing. It has become a mass-produced product that can be seen even in the baozi shop at home.
In April this year, at the press conference of Alipay’s “Dragonfly” new generation products, 1000 machines were snapped up in ten seconds. It is only more than four months since the first generation of mass-produced face brushing payment terminal was launched.
According to the development status report of the face recognition industry of the prospective industry research institute, by 2022, the global face recognition market will reach US $7.595 billion, with an annual growth rate of 20%. Behind this 20% annual market growth, an acceleration sprint of the industrial chain led by technology is being staged.
In the head, it is the fairy game between Alibaba and Tencent, and the downward extension is the competitive admission and team selection of a number of start-ups and upstream and downstream enterprises of the industry. The upstream and downstream enterprises in a series of industries, such as malio, Huajie Amy, shangmi, Zhidian smart phone, OEM, weiduomei and Youbao, have successively entered the market, becoming the first batch of people to taste the sweetness in this reform. For most of them, change is not only a matter of opportunity, but also life and death.
In this emerging industrial chain driven by the popularization of technology, three major industries, including 3D camera, intelligent payment hardware and retail, are creating new outlets with the popularization of face brushing payment:
The first 3D camera manufacturers to benefit, as the core hardware component of face brushing equipment, the 3D camera industry is ushering in the third large-scale application scenario other than mobile phone and industrial manufacturing.
Following closely, the function and sample state of the intelligent cashier equipment also completed a new technical iteration and product upgrade.
In the downstream application and offline retail payment, the interaction between users and merchants and the potential brought by them are also being reconstructed.
As the first batch of players to enter the three major industry outlets spawned by face brushing payment, malio, weiduomei and shangmi technology have been the first to taste the benefits brought by technological change. So why are they? How did they change in the face of strong wind? At the same time, which other enterprises have been affected by this change? In the future, how much imagination does this emerging industry catalyzed by technology and business model have in the future? Will more enterprises benefit from it?
With these questions, smart things interviewed Zhong Yao, general manager of Alipay’s industry payment business division, Liuzhao, technical director of dragonfly, and core participants in industrial reform, such as Mario CPO Zhang and vedomey CIO Hu Bo. Through their thinking and exploration, we tried to find the answer.
3D camera ushers in a new air outlet
After five years of research and development and several rounds of product updates, the face brushing payment with 500000 related employment scale has ushered in a major change node again.
On April 17, 2019, Alipay’s face brushing payment terminal “Dragonfly” announced the launch of second-generation products, and 1000 machines were snapped up at the press conference site in ten seconds. In two days, the order volume of “Dragonfly” second generation exceeded 10000. Just a few days later, the inventory of “Dragonfly” second generation for one month was sold out.
However, behind the large-scale commercial use of “Dragonfly”, in addition to the evolution of Alipay’s own algorithm and risk control system, it also relies on an indispensable product – 3D structured light camera. For a simple analogy, Alipay named its product “Dragonfly”, and the 3D structured light module is the compound eye of the dragonfly.
In the iPhone x launched by apple in 2017, the face recognition function uses the 3D structured light module from prime sense acquired by apple. At the same time, it is the face recognition module carried in the flagship products launched by iPhone X and a series of subsequent major mobile phone manufacturers that officially makes this 3D camera product hidden in the depths of the consumer electronics industry appear in front of the public, so that everyone has a deeper understanding of the security and convenience it brings.
Generally speaking, the two-dimensional information and the three-dimensional information taken by the ordinary camera will be greatly reduced, because they are related to the real information. The three-dimensional vision module can not only capture the feature points of the plane, but also capture the depth information of the face, avoiding the impact of heavy makeup and micro shaping on the recognition effect, as well as the situation of “cheating” with photos and videos.
The principle of 3D structured light technology is simply summarized. It is to use the infrared emitting laser to throw 20000 to 30000 speckle, and then calculate the position depth according to the change of the light perceived by the infrared receiving camera. Among the three mainstream 3D camera module schemes in the current market, 3D structured light technology is one of which has mature technology and commercial prospects.
However, AI 3D sensing involves many links such as precision optical design, chip, algorithm and production. The technical threshold is high and mass production is difficult. The difficulty of both core device supply and assembly quality inspection is extraordinary. Therefore, at present, the number of enterprises that can achieve large-scale mass production of 3D sensor modules in China is not large, even one hand.
Among the mass production enterprises that can be counted with one hand, malio is the player that accounts for the vast majority of shipments in the financial payment field and the only partner of Alipay in the 3D structured light module in the face brushing field. Huajie Amy is the current 3D structured light module provider of wechat “frog”, providing visual module solutions for wechat ecological internal face brushing terminals.
Boosted by the two giants, both 3D camera manufacturers began to explore face brushing payment as early as around 2018.
According to Zhang Jianjian, Mario CPO, Mario is an enterprise jointly invested and established by Obi Zhongguang and ant financial services in April 2018, specializing in the production of face brushing 3D structured light modules for Ali and ant ecology, with a staff size of about 50 people.
Although ant financial had made contact with Obi Zhongguang as early as the first half of 2017 before the establishment of malio, and launched the investment research plan in November of that year.
However, for Obi Zhongguang, they judge that the 3D structured light module for financial consumption will become a huge market demand in the future, and its requirements for product accuracy, distance and module design are also different from the current 3D cameras for mobile phone electronics, industrial quality inspection and other fields on the market.
Therefore, after Alipay proposed to set up a factory through joint venture in November 2017, it experienced more than six months of running in. In April, 2018, Obi officially established a joint venture with Alipay.
As an enterprise jointly funded and established by internet giants and innovative manufacturing star enterprises, the emergence of Mario has brought the production of 3D cameras into the stage of financial grade products. In addition, it has also brought the previously unknown 3D structured light enterprises and upstream and downstream manufacturers into the spotlight. To a large extent, The overall development trend of leech industry has also changed.
Firstly, in the face of different scenes in the cashier link, the production of 3D camera needs special customized design and production, rather than providing fully standardized product production as in mobile phones.
At present, Mario has launched 3D camera solutions for different scenes such as desktop cash register, self-service vending machine and face recognition all-in-one machine. For example, aiming at the relatively fixed position of the camera of the self-service vending machine and the inability to adjust itself, malio specially designed D series products with large vertical FOV; In view of the limited space of desktop cash register and other problems, malio has launched P series products that can be detected at a short distance (25-100cm) and are easy to integrate.
Among the dragonfly II, malio officially released the first Mipi camera module S1. Relying on the multimodal biometrics of infrared recognition + RGB + depth recognition and millimeter level 3D face measurement accuracy, the face recognition rate of S1 module can reach 99.9%. Through Mipi access, the adaptability of products is greatly improved, but the difficulty of whole machine adaptation and detection is correspondingly improved.
Not only is the form of products changing, but also the pace of production should be accelerated with the speed of Internet enterprises.
According to Zhang, generally speaking, the production of 3D cameras generally adopts a series rhythm. After the previous process is completed, the next process starts. However, with the rapid iteration of Internet products, it has been upgraded to similar parallel production. In terms of R & D cycle, the traditional hardware products are iterated once every nine months, but Alipay’s “Dragonfly” has completed the technical iteration and product update in only four months, and the corresponding production cycle of Mario has also been accelerated.
On the one hand, because wechat is relatively low-key, the shipment volume is still unclear. On the other hand, wechat’s face brushing algorithm is still in the joint research and development stage with Liyin everything company under Xiaoyi intelligence, which may be one of the reasons why wechat has not carried out too much publicity on its “frog” products. However, Huajie Amy doesn’t seem to display a special face brushing payment product module, and it doesn’t put too much emphasis on the payment field in major industry applications.
However, in the future, with the gradual increase of wechat betting and face brushing, Huajie Amy may usher in a major opportunity, and it is not impossible to open up special financial consumer products.
Traditional payment hardware players usher in a turning point of fate – getting on the bus is the king
If 3D structured light module manufacturers have ushered in new opportunities, for traditional POS manufacturers, the birth of face brushing payment terminals such as “Dragonfly” has a direct impact on their main production direction in the future, and once missed, it is likely to mean elimination.
There is no doubt that every change in payment mode will lead to the change of the most direct payment medium. POS machine and U shield in the bank card era, code scanning gun in the QR code era, and “Dragonfly” and various face brushing machines and tools in the face brushing era.
Behind this change in payment media is the change in the interaction mode of users and merchants in the whole offline retail.
Zhong Yao, general manager of Alipay industry payment division, once described the gap between “Dragonfly” and traditional payment Hardware:
“There are a large number of cash register devices in traditional offline scenes, but it is a tool that can only complete specific payment purposes”, while Dragonfly “our definition of it is definitely not just a face brushing payment tool”, which “takes payment as the end point and the starting point of business operation”. Through the basic attributes of disintermediation and the characteristics of recognizing users before payment, “Dragonfly” can also complete functions such as one click card opening, membership card voucher issuance and interaction with consumers.
Compared with the code scanning gun and other products in the traditional QR code period, its upgrading iteration means that the smartphone replaces the traditional function machine around 2012. For a group of complete machine manufacturing enterprises represented by shangmi, whether to brush the face or not is a choice related to the survival of the enterprise. Once the air outlet is missed, it is likely to be directly eliminated by the general trend of the industry.
As a link in Xiaomi’s ecological chain, shangmi technology timely reached the limelight of the change created by Ali. At present, there are only three sources of “Dragonfly”, one is Alipay itself, the other is the face brushing machine launched by Mario, and the main face brushing payment terminal comes from the production of shangmi technology.
As early as 2017, Alibaba retail has started to implant POS system into small stores through shangmi. When the face brushing payment terminal is released, shangmi naturally becomes the only manufacturer of Alipay face brushing payment terminal in the current Alibaba system.
Through the popularization of face brushing technology, shangmi released 24 products in 2018, including seven face brushing machines: Sunmi K1, H1, T2, T2 Lite, S2, D2 and D1s. The scene covers cashier interaction, weighing, self-service card withdrawal and other services. In the previous stage, shangmi released two new products in 2016 and three new products in 2017. The corresponding product functions extend from simple payment to member identification, identity management, member marketing services and other aspects.
On the one hand, the face brushing has brought great changes to the industry, and on the other hand, the giants have offered irresistible temptations.
At the launch site of the second generation of dragonfly, Zhong Yao directly said that Alipay estimated that it would subsidize 3billion to its partners in the next three years, and decided to license all qualified products as “Dragonfly”. In other words, for the first entrants, they can not only occupy the air outlet of the industry first, but also get a share from Ali. Even in terms of naming, they can be legitimately stained with the light of giants and have more confidence in publicity.
The birth of Alipay dragonfly, not only shangmi, but also ushered in new opportunities for a group of people in the smart phone OEM.
With the small increment of the smartphone market at the current stage, at the same time, major mobile phone enterprises have chosen to build their own factories. Many factories starting from mobile phone OEM in Shenzhen are facing the dilemma of market shrinkage. Taking advantage of the east wind of dragonfly, there is already a manufacturer of glorious mobile phones that has become the OEM enterprise of Alipay “Dragonfly”. In the future, in the face of the huge market increment of face brushing payment, more mobile phone OEM may participate. The rise of emerging Internet of things devices represented by “Dragonfly” is bringing new impetus to the old industry of mobile phone OEM.
Almost at the same time with shangmi, Zhidian intelligence also caught the face brushing air. Its CEO fengxinyu once said that “2019 will be the outbreak year of face recognition payment. Wechat and Alipay will promote face brushing payment in an all-round way. Within two years, face brushing payment will be widely popularized.” In March this year, Zhidian intelligence also released three new face brushing products, cvpos, Zhidian facescreen and Zhidian Facebook, through cooperation with wechat facepay.
At this stage, it is not difficult to see that most POS manufacturers are not only facing the problem of whether they can catch up with the first wave of face brushing payment, but also facing the unspoken choice between wechat and Alipay. It’s a great pity that we can’t catch up, but the risk of choosing the wrong one is not low?
Face brushing payment is about to blossom everywhere — retail customer relationship ushers in reconstruction
Behind the release of “Dragonfly”, not only the upstream production enterprises are changing, but also the downstream applications are changing, including vending machine enterprises such as Youbao and offline physical stores represented by vedomei. At present, they have become partners of Alipay brush face payment. In this great change in the industry caused by payment, they are undoubtedly the first to taste the benefits.
As Zhong you said, the first change brought about by this payment technology is the reconstruction of the relationship between consumers and businesses. In his opinion, the revolutionary change of dragonfly lies in the following points besides the payment itself:
First, disintermediation brings the focus of users’ concerns. Users can complete payment activities without any media, which is not only efficient but also convenient.
The second is the reconstruction of user relationship brought by camera recognition. Before users pay, dragonfly can recognize the identity of regular customers, and customized card and coupon push and precision marketing for regular customers become possible.
In addition, through the electronic screen, the traditional member renewal process has also changed. Since the face brushing will be directly related to the user’s Alipay account, the traditional member handling process is generally recommended by the cashier, and then the consumer registers the member information by hand, which is not only cumbersome, but also a heavy and inefficient labor for the cashier. However, since the face brushing will be directly related to the Alipay account, as long as the option of handling members automatically pops up after the user completes the payment, the user can complete the card opening process of the member in one second, and the efficiency is improved by up to six times.
As the leader of the self-service vending machine industry, Youbao has become one of the first enterprises to access Alipay face brushing technology. In the view of its CEO chenkunrong, it is very important to interact with users in the retail process. On the one hand, it will attract the attention of users, on the other hand, it will also increase advertising revenue, and even change the payment process from the traditional six steps to three steps, bringing a very high time efficiency.
In addition, knowing who the user is before payment also makes Youbao’s product sales and advertising distribution more efficient.
Chen Kunrong cited an example, “A boy who has just graduated for a year walks to the company’s self-service coffee machine to have a cup of coffee. Because I know that he basically drinks American coffee and latte, as long as he walks within 1.5 meters, I think he needs to buy goods. American coffee and latte will appear on my screen, and even with a small marketing activity. After choosing American coffee, he has 30 seconds of freshly ground coffee, which is 30 seconds He can watch an interactive car advertisement and get a big gift bag and an invitation for a free test drive. “
In addition, Chen Kunrong added that at the current stage, the sales volume of Youbao’s vending machine has increased by 20% after several months of face brushing payment pilot, and they plan to fully access it in the future.
Similar to Youbao are Liufu duck, Bufeng lotus, weiduomei and other enterprises. Hu Bo, chief information officer of weiduomei, said that after the introduction of dragonfly in many stores, weiduomei’s cashier efficiency has increased by more than 60%, and this trendy payment method has also increased young users by more than 50%. Next, weiduomei will also promote “Dragonfly” to all stores.
Behind the face brushing, ant financial service technology turns, and wechat payment is facing a dimensionality reduction blow
Upstream production is changing, downstream applications are changing, and even ant financial services and wechat payment itself are changing.
For ant financial services, with the increasing tightening of financial supervision, technology export transformation is becoming an important development direction in recent years. Reuters has reported that with the deepening of the crackdown on financial risks at the national level, ant financial’s business focus will turn to technical services.
According to the financing documents of ant financial services transmitted online, in the revenue composition of ant financial services in 2015, the payment of access service fees accounted for about 60%, financial services accounted for about 20%, and technical services accounted for only about 10%. In 2017, the proportion of paid access fees decreased to about 50%, the proportion of technical service revenue was 34%, and the proportion of financial services was about 10%.
In the next five years from 2018, ant financial announced that technical services will account for 65% of ant financial’s revenue in the next few years.
Face brushing payment is the next representative case of ant financial’s technical service transformation strategy.
For the whole system of Alibaba, dragonfly’s direct user touch and merchant connection ability is also an important part of Alibaba’s new retail strategy. Further, the disintermediation and user relationship reconstruction brought by face brushing payment will bring new opportunities for both rookies and tmall in Alibaba system.
In terms of wechat, in 2014, Zhang Xiaolong’s team launched the online New Year red envelope function, turning the mobile payment market from Alipay’s dominance to today’s two equal shares. Relying on the high opening rate of wechat itself, the use frequency of wechat payment offline payment scenarios has soared in recent years, posing a great threat to Alipay.
However, the launch of face brushing payment completely completed disintermediation, which brought dimension reduction blow to the high-frequency advantage of wechat payment. However, wechat is naturally reluctant to give up in the face of mobile payment, which is a fat meat that has been readily available, or the new retail opportunities brought by face brushing. Following Alipay, it is natural to launch the “frog” of face brushing payment terminal.
Conclusion: Giants frequently make moves and brush their faces to pay, setting off a big wave in the Jianghu of traditional industries
In the business world, payment is often more than payment. Just as the birth of Alipay made online transactions reliable, offline QR code directly led to the rise of mobile payment, and face-to-face payment made the distance between users and merchants further. Offline retail enterprises represented by Youbao and Liufu duck are becoming the first beneficiaries of this payment reform, taking the lead in completing the evolution of their own retail model.
By combing the development process of the brush face payment terminal and the corresponding industrial chain changes, we found that the 3D structured light enterprises represented by Mario and Huajie Amy, which are strongly related to Alipay and wechat, are ushering in another important direction of landing. For shangmi and weaving point intelligence, the popularity of face brushing payment has brought product and technological innovation to the whole intelligent POS machine industry.
The first batch of players to enter the game have tasted the sweetness brought by technological change and become one of the promoters of this brush face payment.
But this is just the beginning. The future imagination of face brushing payment is more than US $7.595 billion. Through the reform of the upstream industrial chain, the birth of new employment directions at the end, and the reconstruction of retail relations with customers, the number of enterprises benefiting from face brushing payment will be far more than that in the future.
With the intensification of technological competition, more and more participants are bound to come and take a share. As for who can laugh the last in the future, the industry barriers obtained from technological leadership, the construction of ecology and the understanding of the industry are indispensable.