Facial payment is not a new technology. In early 2017, it was listed in the top 10 breakthrough technologies in the world by MIT Technology Review. It was in that year that faceid on iPhone x made people get used to staring at their mobile phones and waiting for recognition results.

At that time, the accuracy of face recognition was enough for financial transactions. Alipay and WeChat also launched the commercial equipment for brush payment in that year, but they were only small-scale pilot projects, but they failed to promote them. The reason is also very simple: brush face equipment is too expensive, a set of face mounted payment machines often cost more than 10000 yuan, while the two-dimensional code only costs a sheet of printing paper.

It was not until last August that Alipay announced on the open day of ants’ golden clothing that “brush face payment function has matured”. This does not mean that the brush face technology has a new breakthrough, but the cost can finally be reduced to less than 3000, and it can be popularized on a large scale. At the end of that year, Alipay launched the “face Dragonfly”.

This year, the speed of product upgrading has accelerated. As of October, WeChat has launched the two generation brush face payment device product frog, Alipay is also the case. In the latest brush payment products, WeChat and Alipay have added functions such as brushing their faces, that is, membership and opening up small programs.

Since five years ago, people have gradually become accustomed to mobile payment. QR code is not only a means of payment, but also the entrance of mobile Internet. Now, whether Alipay or WeChat, or the big and small businesses, they feel that the payment of the brush face may be the next “entrance”.

So the war began.

The battle signal is still announced as a subsidy plan. In March of this year, Alipay announced that it will invest 3 billion yuan in the next three years to support the businesses to complete the digital transformation of the hardware of the brush payment payment. In September, the policy of “no upper limit investment” was launched again, and the market rumors that WeChat subsidized 10 billion yuan. However, the scale of the subsidy was denied by WeChat. Alipay also indicated that no limit investment is not a subsidy, but a whole investment plan for the brush industry.

But in any case, the offline payment market will usher in some changes.

power

Alipay and WeChat should give merchants a reason to accept new things beyond the usual payment methods.

Guo runzeng, vice general manager of wechat payment industry application, admitted that the reason is not easy to find. “If it’s just a hardware device for face payment, there are not so many just needed scenes at present, and the use behavior has not been cultivated.”

But in the end, they found a problem that can help businesses solve: membership.

“Some businesses are willing to spend money to attract and manage members, but the operation steps of opening members are lengthy and the conversion rate is relatively low. In addition, after consumers become members, they often don’t know whether they are members or what the benefits of members are, because the entrance of members is deep. “

Wechat team believes that at present, the experience is separated between the activation of members and the payment of members. “I have to go to my member code first, and the cashier knows that I am a member, and then I know the discount, and then I scan the code to pay.”

And these can be solved through the face brushing device – after the traditional membership card scans the code, it’s very troublesome to fill in all kinds of manual input. Now, as long as you are authorized to obtain the name and email, you can get the member by one button, and the member discount can be directly reflected on the machine.

This can also greatly improve membership conversion. According to the data given by Alipay, in Hangzhou, the percentage of members of the Shakespeare shop is 3%, while the brush payment is 18% and six times higher.

“The final positioning is that it is a business platform, and face payment is just a product name.” Alipay said that it could carry the content service of the entire Ali economy, not only members, including Tmall, Taobao, etc.

Due to the removal of the layer of media, the social advantage of wechat payment no longer exists. This time, it will be a real competition of new product promotion.

Ground push

“2019 brush face payment for the first year, 30 billion pay market reshuffle”, “Alipay and WeChat will not fall, get rid of old, 13 billion hit market promotion, grasp the largest pipeline income trend of the times!”

In the face of some QQ groups, there is such an eye catching propaganda — some employees of Alipay and WeChat under the official line are constantly cleaning up in the group.

A new product from the market to popularization, can’t do without the investment of giants, also can’t do without the agents who want to make a wave of fast money by promoting products.

Li Yuan is one of them. He started to promote QR code in a top five service provider company three years ago, and started to follow the trend in March and April this year. Li Yuan told touzhong.com that face payment is actually easier to promote than two-dimensional code, and its market acceptance is higher than before. “Before, I had to work hard to talk about two-dimensional code and security with businesses, but now most businesses can accept it.”

It has been proved that the face brushing device is better than the two-dimensional code. Alipay staff responsible for Dragonfly business line disclosed to the investment network that the Southern China store which was working with 711 had increased the number of users using brush face over the past three months. The promotion speed of face payment is about three to four times faster than that of people’s promotion speed from cash to scanning code in those years. ” He said.

The reason for better promotion is that it will be easier for users who have been educated by QR code to receive face brushing payment“ From cash to code scanning, user education is very difficult. Many people are used to cash and think that the QR code is not safe. There are also many alarmist rumors that users lack a sense of security.

But in those years, through the “you dare to sweep, I dare to pay” activity, we made some contributions to the cultivation of the market. After such a wave of experience, from using QR code to using brush face, the threshold of educating users was lowered. ” Alipay said.

However, there are also many businesses on the sidelines. After all, face brushing is still in the initial stage of promotion. It is not popular and few people use it. Cable push personnel told touzhong.com, the merchant’s psychology is, “at present, my cashier way to meet my business needs, why pay for your equipment.”

How to persuade the business at this time?

“Talk about the big trends.” In the view of some local tweeters, sometimes they can’t talk about the benefits of face payment with businesses, and the recommended entry point can only start from the trend and preferential strength, “directly tell businesses that they will use it even if they don’t use it now, but now there are concessions and subsidies.”

“Many businesses are passive in accepting new things.” In Li Yuan’s view, with more people waiting, businesses will naturally install face brushing machines, “just like scanning the QR code at the beginning, when pushed to a certain time, it will burst out like a blowout.”

If the trend does not move, then we should use the simplest means: throwing money.

subsidy

In the early stage of new product promotion, one of the most effective ways to cultivate users’ habits is to spend money on subsidies.

In August 2013, the fast taxi was connected to Alipay. On January 10, 2014, wechat payment cooperated with didi taxi, using wechat payment to reduce the bus fare by 10 yuan and award the driver by 10 yuan; 10 days later, Alipay and fast follow up the same subsidies. 11 days later, Alipay increased the driver’s allowance to 15 yuan. Since then, the taxi subsidy war represented by didi and kuaidi broke out.

This is not only about the market share, but also the competition between Alipay and WeChat mobile payment users. Under the strong subsidy, QR code payment quickly opened up the market situation, and gradually applied from taxi to e-commerce, retail, hospital and other user scenarios.

Now, this marketing strategy will be copied to the face payment. In order to attract consumers to use brush payment instead of scanning code, Alipay and WeChat will provide consumers with preferential treatment. For example, there will be random reduction and discount activities in the shop, but no sweep code.

It’s just a subsidy to consumers. It’s equally important to attract businesses and promoters to join in face brushing payment. Obviously, unlike the two-dimensional code, which has almost no cost, the face brushing payment has the cost of buying the machine, so the face brushing machine needs to be spread out in the form of subsidy first.

In March this year, Alipay announced that it will invest 3 billion yuan in the next three years to support businesses in completing the digital transformation of the hardware of the brush payment. After 6 months, it also launched the “no limit investment” policy and raised the maximum 1200 yuan Machine Subsidy to 1600 yuan. Wechat payment also has subsidies, but there is no clear figure.

Under a lot of money, there must be “brave men”.

“The subsidy will be returned to the person who pays for the machine. Many of us are agents who pay for the machine and give it to the business for free. The agent will cover the cost through subsidy.” Li Yuan said.

In addition to machine subsidies, there is also running water. The service providers who have promoted the payment of face payment have calculated the amount of money in the net. The general rate of business is 0.38%, except for catering, and 0.17% of the cost to Alipay and service providers is given to agents. In other words, if a business has 10000 yuan of running water a month, the agent can get 17 yuan. If there is 1 million yuan of running water, it can get 1700 yuan“ Only by earning a share of running water, businesses with large running water will generally return their capital in two or three months. ” The employee described the “money scene” of promoting face brushing payment.

The rush on like a swarm of hornets and Alipay is the biggest driver of the development of the service providers. Many people are in a rush to win a big fortune under the banner of WeChat and WeChat.

To a certain extent, this has also caused confusion in the market – the service providers and agents in this promotion chain may eventually become cut leeks“ Before many two-dimensional code service providers finally died. ” Li Yuan said, “as an agent of a small service provider, you can’t get any commission because most of the service providers are not for landing, but to cheat the agents of the franchise fee. Finally, they will run away when they receive the franchise fee.”

dispute

The birth of a new thing is always faced with controversy and doubt. Today’s query about face brushing payment reminds Guo runzeng of the query about wechat payment when wechat payment was just launched into the market, “imagine that in the early years, wechat was bound to a bank card. Wechat was a chatting thing. Would it be unsafe to bind a bank card? Many people didn’t want to bind it.”

In his view, the life of new products ultimately depends on whether the products are valuable and whether they can grow naturally“ In many scenarios, Bruce Lee says that wechat will not push a product that will not grow naturally, because there may be problems in the scenario itself. ” Guo runzeng said, “a really easy to use scenario is that when people hear about this thing or use it, they think that I want it too. This is a good product. If the product reaches this level, there is no need to worry about whether it will not be laid out, whether no one is willing to use it, or whether the cost is one or two thousand yuan. “

Mobile payment is forced by users, and the market turns. Now in the face of payment, can form a user force?

Guo runzeng believes that it depends on whether the product is really as valuable as we think“ For example, members of a chain store of the same business, some of them have face brushing members, some of them don’t, and those who have used face brushing members will feel that you don’t have this thing here when they arrive at this store? It’s convenient over there. This will become the user force business

As for the security and privacy issues questioned by the Internet, “I think there will be many new technologies to solve these problems on the Internet, including all the loopholes. Whether face brushing equipment can become a mainstream payment method may depend entirely on the speed of promotion. ” Dr. Zhao Liyue, R & D director of cloud technology financial business, told China investment network.

At present, the national team has also joined in the promotion war of face brushing payment. According to people familiar with the matter quoted by Beijing business daily, UnionPay is currently in the pilot marketing stage. In the cloud flash payment app, face payment has been quietly launched in seven cities, including Guangzhou, Hangzhou, Wuhan, Ningbo, Hefei, Jiaxing and Changsha.

The players have just arrived in this new field of payment.

Editor in charge: CT

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