POS machine payment belongs to the third-party payment industry, and the company that carries out POS machine business is called an acquirer, that is, a credit card terminal, and a company that provides machines and tools to consumers to swipe cards. As the largest bank card acquirer in China, UnionPay Business is backed by China UnionPay and holds a payment license, ranking first in the POS acquiring industry. Looking back at its achievements in recent years, according to the data released by the "Nielsen Report", an authoritative market research agency in the global payment industry, UnionPay Commerce ranked 8th in the "2018 Global Acquirer Ranking", and from 2013 to 2018, it ranked first in the ranking of acquirers in the Asia-Pacific region for 6 consecutive years.
In addition to acquiring business, UnionPay also provides a variety of services such as wealth management, loans, big data information, marketing value-added, self-service terminals, and financial cloud. However, the main business is still payment and financial services. In terms of finance, UnionPay has built China's first B2B inclusive financial service platform, Tiantianfu.
Acquiring is the core business, and UnionPay Commerce has set up 150 branches across the country, which is the largest number in the industry. The second largest is Allinpay, with 72 branches. The more branches are set up, the wider the scope of the brand, and the higher the audience, but the product can ultimately win from the market, and it also needs the support of R&D technology.
The development of POS machines, from traditional POS machines, to smart POS machines, and then to today's popular face payment, adapts to the escalating convenient payment needs of merchants and users in consumption scenarios, and the technology behind this is complex and scarce. In 2019, UnionPay Commerce invested 765 million yuan in R&D expenses, accounting for one-fifth of the operating costs, compared with Lakala's R&D expenses accounting for one-twentieth of the total cost, UnionPay Commerce's R&D investment can be described as the number one player in the industry. Naturally, the latest face payment product launched in 2019, "All People Pay Blue Whale", won the "2019 People's Ingenuity Product Award", and the uniqueness of this product is that it is currently the only payment product in the Chinese market that realizes face aggregation and code scanning aggregation.
In addition to the "Blue Whale" product that has not been launched for a long time, other POS products of UnionPay Commerce are also worth mentioning. What needs to be distinguished here is that the POS acquiring service company and the POS machine production company are separate (with a few exceptions), after the POS machine leaves the factory, it is only in the state of "bare metal", and only the acquiring service company with a payment license can use it after purchasing the POS machine and installing the application software and the fund clearing channel. The manufacturer of POS machine is also particularly important, at present, only 37 companies have passed the UnionPay production qualification certification, and the specific list of enterprises can be viewed in the "security" index. The POS machine suppliers of UnionPay Commerce include well-known suppliers such as Liandi Commercial, Newland, and PAX. Among them, the ME30, ME31 and ME32 models provided by Newland have passed two certifications, namely "Equipment Security Certification" and "Application Software Security Certification"; The M36 model and the D210 model of PAX Commercial have passed the "Payment Application Software Security Certification".
As a leader in the industry, UnionPay Commerce also has a history of punishment for capital violations. As early as mid-2016, UnionPay Commerce was fined 26.537 million yuan for merchants illegally applying merchant category codes in low-rate industries and allegedly releasing channels for "two clear" institutions, and in early 2019, its branch structure, Guangzhou UnionPay Network, was fined 1.5 million yuan for violating payment and settlement management regulations. Although the stain history is on the record, at present, UnionPay Commerce plans to be listed on the Science and Technology Innovation Board, and the payment industry has also reached the stage of transformation, and the state has also increased its monitoring, so the payment security of UnionPay Commerce is still guaranteed to a certain extent, because a small move will not be conducive to the success of its listing.
