The advantages and disadvantages of the payment institution

Compared with the online loan industry filing delay, the payment industry is also experiencing unprecedented strong supervision.

After the “broken direct connection”, on June 29, the central bank’s General Office issued the “Notice on the payment of all the deposits of the payment institution’s customers” (Banking [2018] No. 114), requiring the payment institution to Starting from July 9, 2018, the proportion of deposits paid by the payment institution’s customers will be gradually increased on a monthly basis, and 100% of the deposits will be realized by January 14, 2019. With the 100% centralized payment of deposits, what are the advantages and disadvantages of the payment institution?

Recently, the 28th “Pay Salon” event hosted by China Payments Network was held in Beijing. At the event site, the person in charge of the risk control and compliance department of a payment institution published relevant opinions on the “evolution and impact of the supervision of the reserve fund”.

Two stages of the supervision of the reserve fund

The chaos of payment institutions has been around for a long time. Previously, Shanghai’s purchase of malicious misappropriation reserves resulted in a capital risk exposure of 780 million yuan; Guangdong Yimin borrowed a multi-purpose prepaid card to launch the “refueling gold” business, with a cumulative sales amount of 2.22 billion yuan, and the funds were moved. He used to make an exposure of 600 million yuan; Zhejiang Yi Shi used 54.203 million yuan of customer reserve funds for private lending; in 2015, he found in the special inspection of the payment management of payment institutions, including An Yi Lianrong, Guangxi payment The four payment agencies, including the company, have misappropriated and used the reserves. The total amount of funds involved is 250 million yuan, and the reserve fund gap is about 146 million yuan.

It is the frequent chaotic behavior that has accelerated the central bank’s supervision of payment institutions’ payment of funds. The person in charge said that the supervision of the payment agency’s reserve fund has gone through two stages, namely, through the business rule control phase and the centralized payment phase of the reserve fund.

In the business rule control phase, the regulatory authorities mainly carry out by reducing the scale and not diverting and occupying funds. On the capital constraint, the ratio of the daily balance of the paid-in monetary capital to the customer’s reserve fund shall not be less than 10%. At the same time, only the payment company that obtains the Internet payment license can open the payment account and pass the I, II, III accounts. The limit is stipulated.

Relevant data shows that the scale of payment agency customer deposits has expanded rapidly at this stage, from 1,226 billion yuan in 2013 to the current 1,138.4 billion yuan. It is precisely because the effect of the business rules control phase is not obvious, which has caused the central bank to make up its mind to start implementing the centralized payment of reserves.

In January 2017, the central bank issued the Notice on Implementing the Relevant Matters Concerning the Central Depository of Deposits for Customers of Payment Organizations, stipulating that from April 17, 2017, the payment institution shall deposit the customer’s reserve funds to the designated institution according to a certain percentage. . In December of the same year, the central bank reissued the “Notice on the proportion of deposits paid by customers of payment institutions”, which requires that the proportion of deposits paid by institutional customers in 2018 will increase from the current 20% to around 50%. On June 29 this year, according to the newly issued method of deposit payment, from July 9th, the proportion of deposits of payment institutions’ customers’ deposits will be gradually increased on a monthly basis, and 100% will be realized by January 14 next year. deposit.

Lower interest income, higher handling fees

Regarding the impact of the centralized deposit of deposits on the payment institutions, the responsible person analyzed that, from a positive perspective, after the deposits were deposited in a centralized manner, it would be beneficial to the supervision of the People’s Bank and improve the security of the provisions. At the same time, with the reduction of the provisioning account opened by the payment institution in the bank, the account management is made simpler, and the personnel that may be needed in the subsequent payment settlement work will be reduced accordingly. In addition, after the deposits are centrally deposited, the payment institution will also pay mainly, which is also the original intention of the regulatory authorities including the central bank.

However, after the deposit of 100% of the reserve fund is centralized, the interest income of the payment institution is greatly reduced. According to relevant statistics of Suning Financial Research Institute, as of the end of April 2018, the depository deposits deposited by the payment institution at the central bank amounted to 499.5 billion yuan, calculated at a ratio of 50%, and the average daily balance of the payment agency’s reserve fund was about 1 trillion. Yuan or so. In the scale of 1 trillion, the ratio of regular and demand deposits is calculated according to 4:6. The interest rate is calculated according to 1.3% (six-month time deposit) and 0.35%, respectively. The interest income for one year is about 7.3 billion yuan.

After the reserve is 100% centralized in January 2019, the income of this part will be reduced to zero, and the income of the payment institution will be greatly reduced.

With the centralized payment of the reserve funds, the interest income of the payment institution is greatly reduced, and the bargaining chip between the third party payment gateway and the bank is also reduced. Previously, “the wool is on the pig, and the last one is paid by the dog” will no longer exist. The recent comprehensive payment of credit card repayment by WeChat will be the signal, and the handling fee of the subsequent payment channel will also be improved.

In addition, after the deposit is centrally deposited, T+0 will become the standard of the payment institution, and the subsequent innovation business based on the reserve fund account will also be reduced.

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