The truth is actually very simple. ETC credit cards can not only help customers "save money", but also "make money" for banks, and can also avoid the problem of insufficient balance of ETC savings cards! Of course banks are more willing to recommend ETC credit cards than debit cards!

1. ETC card + savings card

Advantages: High-speed travel, no parking required, real-time deductions, convenient and fast. Enjoy a 5% discount on tolls.

Disadvantages: The direct debit mode is adopted, and there must be sufficient balance in the debit card.

2. ETC card + credit card

Advantages: Expressway can realize "pass first, pay later", credit card can be used for overdraft consumption, and there is almost no shortage of balance!

Disadvantages: Every toll is a credit card debt, which must be paid in full and on time, otherwise it will be overdue, generate high interest, and even affect personal credit!

Compared with ETC debit cards, ETC credit cards involve more functions and are used more frequently by users, which may create more revenue for banks!

This is a multi-faceted, long-term and stable "tool" for making money. How can banks not recommend it highly?

This is very simple:

ETC is the traffic entrance for mid-to-high-end customers:

The people who need ETC installation are car owners. Judging from the current data, car owners The average household assets are higher than the average assets of the entire society, because the current average selling price of vehicles nationwide is around 150,000-200,000 yuan. There are many families who can take out this deposit at once, but people with this deposit may not necessarily buy a car.

Because a car is a consumable, if the vehicle cannot bring you actual convenience and profit expectations at work, then buying a car is an irrational behavior. Of course, it does not rule out that many factory employees buy it. Commuting to and from work, but living very close to a factory, most people consume irrationally. But rational consumption still dominates.

Therefore, people who can afford to buy and maintain cars are generally middle- and high-end people, at least a large part of them are middle class and above. The opening of ETC connects these car owners with banks, and they need to open bank accounts. At this time, the bank has three potential profit opportunities:

1 Return of stored-value cards

Currently, many ETCs are conducted in the form of stored-value cards, but stored-value cards will gradually be eliminated in the future , which means that the money that originally flowed into the account of the charging company will flow back to the financial system, and every financial unit may make a profit.

2 Customer transfer

Because ETC requires frequent consumption, car owners need to transfer part of the funds into their bank or payment system accounts. Due to the increased frequency of use, customers may be prompted to transfer more Transfer the funds to a bank or payment institution. With customers, a whole other set of business revolves around car owners. Those institutions that do not take measures may passively lead to the loss of customers, so they have to start fighting.

3 Data

Travel data can help the financial system build an integrity system and ensure the effectiveness of the risk control system.

Previously, the "Notice on Vigorously Promoting the Development and Application of ETC on Highways" issued by the Ministry of Transport proposed to fully implement free installation of ETC vehicle-mounted devices and increase installation service outlets. According to the plan, by the end of 2019, the ETC installation rate will reach more than 80%, the ETC usage rate of vehicles traveling on the expressway will reach more than 90%, and the expressway will basically realize fast toll collection without stopping. According to statistics from the Municipal Transportation Commission, Beijing needs 1.21 million new ETC users before the end of the year. The ETC issuing agency will connect with banks and other institutions as well as gas stations, 4S stores, car repair shops, parking lots and other vehicle centralized places to provide one-stop full-process installation services nearby. At the same time, Internet channel resources should be fully utilized to support customers to independently select products and services, self-register, and self-install. Issuers and cooperative institutions are encouraged to open various forms of online distribution channels such as websites and apps to provide customers with convenient services.

In order to attract users, various banks have also launched various preferential activities to promote ETC. Not only are card issuance and equipment installation fees free, but highway tolls are also discounted by 15%.

Some banks have even launched various gift packages such as free tolls worth 100 yuan, instant discounts of 50 yuan on gas, car washes for one yuan, free driving, and doubling of points. Some banks also support online application. Users only need to submit relevant information on the bank App. After review, the bank will mail the device and card. The user can activate the device and use it normally.

1. Deposit cards require a deposit, which will affect use

If you use a debit card to apply for ETC, you need to freeze the account balance of 500 yuan as a deposit. This deposit is used to prevent If the user owes money after an ETC overdraft, the credit card itself has an overdraft function, so there is no need to freeze it. In addition, there are no other fees for handling ETC.

2. Credit cards are profitable for banks

Credit cards still need to be done. After all, credit cards also contribute to the profits generated by banks.

Recently, the Ministry of Transport issued the "Implementation Plan for Accelerating the Application Service of Electronic Non-stop Quick Toll Collection on Highways" (hereinafter referred to as the "Implementation Plan"), proposing to vigorously promote the installation and application of ETC.

Out of the blue, why does the Ministry of Transportation want to promote ETC? This started with the promise in the 2019 Government Work Report, which clearly stated that "within two years, we will basically cancel the toll stations at provincial boundaries on highways across the country, realize fast toll collection without stopping, reduce congestion, and facilitate the masses." This means that in 2020, we will cancel the toll booths on national highways. Provincial boundary toll stations enable convenient toll collection without stopping.

According to statistics, the total number of high-speed ETC vehicles installed in the country is 78.56 million, accounting for 33% of the total number of cars in the country. It took ten years to reach this number. According to the plan, convenient toll collection without parking will be fully realized in 2020, which means that the penetration rate of ETC will increase significantly in the short term.

The next year and a half will be a golden window for ETC to develop, and it will also be the last opportunity in a phased manner. No wonder banks and payment institutions are gearing up.

Relying on the advantages of outlets, national banks have launched special ETC expansion activities within the bank to increase assessment and incentives for employees within the bank; on the side of users, they have made fee-based items free and shortened the process to allow ETC Processing is facilitated.

It is easy to lead a horse to a river, but difficult to force a horse to drink water. Banks are eager to pick new players, but users may not buy it. Compared with the bank's ETC solution, the payment giant has also come up with a convenient toll-free solution.

As early as 2016, there was news that high-speed toll gates support scan-code payment, solving the problem of cash change for high-speed tolls. However, scanning QR code to pay is inseparable from the manual charging window. Compared with ETC, the experience is still inferior, so the popularity and acceptance are not high.

In 2018, Alipay

piloted ITC license plate payment on Henan Expressway, binding the license plate number to the Alipay account, and turning the license plate number into a payment code. Compared with ETC which requires the installation of special equipment, it seems to be much more convenient. However, the activation of contactless payment is simple, but during the implementation process, there are problems such as equipment modification and upgrading, and the accuracy of license plate number recognition, and there is still a long way to go before it is popularized.

In contrast, the ETC model is still the most mature solution at present. Banks cooperate with ETC card issuers to bind ETC cards to bank cards. In addition to the inconvenience of initial installation, subsequent use is very convenient. Fees are deducted directly from the bound bank card, so you can use it with peace of mind.

Why don’t payment institutions adopt this strategy? With ETC as a mature model, why bother reinventing the wheel? Previously, there were mainly obstacles in binding ETC cards to payment accounts. As the "Implementation Plan" clearly states that "ETC is allowed to be bound to existing bank accounts and payment accounts," it is just around the corner for payment giants to join the battle for ETC's position.

Banks and payment institutions are seizing the ETC payment scene. In fact, they are seizing the highly sticky contact entrance for car owners, using this as a bridge to penetrate and promote other financial products to fully explore user value.

Compared with banks, payment institutions dare to subsidize and are good at operations. They have a large user base and high stickiness. The entry of payment institutions can not only quickly promote the popularization of ETC and make the market pie bigger, but also make ETC a niche market. The market has rapidly escalated into a battle between giants, which has put greater competitive pressure on banks, especially regional small and medium-sized banks. Some small banks may withdraw from the market, and more banks may choose to tie up with payment giants to carry out joint marketing.*** Slice the market cake together.

With the high-speed payment scene being broken, mobile payment has made another success.

It is becoming more and more convenient for car owners.

"Look for ICBC to apply for ETC, and new customers will get 100 yuan tolls, 50 yuan instant discount on gas, and other ten generous gifts" "ABC ETC one-stop service, apply online, wait for OBU equipment to be delivered to your door, high-speed access The minimum fee is 10% off” “You can make a reservation online with China Merchants Bank ETC to draw the prize, and you will win 100% of the time.” In the past few days, the word ETC has flooded the text messages and Moments of many people.

Major banks have recently been promoting ETC online and offline, and Alipay and WeChat Pay have also participated in the battle for customers of ETC.