1. Card issuing bank handling fee (may be applicable).
The iPad Air 16GB space gray is priced at 3,588 yuan on APPLESTORE. If you buy directly at the counter with cash, the transaction process is that you pay APPLESTORE 3,588 yuan and then get the corresponding items. At this time, APPLESTORE actually receives 3,588 yuan. But when you submit an installment application to the card issuing bank ICBC and get permission, ICBC will pay 3,588 yuan from your ICBC credit card account to the acquiring bank account designated by APPLE (assuming it is BOC). At this time, a payment is made from the acquiring bank to the card issuing bank. The handling fee paid by the bank varies from about 0.5 to 1% of the transaction amount, and BOC will pass on this handling fee to APPLE (usually higher than the handling fee it pays to the card issuing bank in order to earn the difference). Therefore, the final payment received by APPLE is 3588 minus the handling fee, and BOC as the acquiring bank and ICBC as the issuing bank will earn handling fees from this transaction.
In view of APPLE’s bargaining power, the handling fee rate of the acquiring bank it specifies should not be too high. In addition, ICBC basically comes to find APPLE’s installment payment activities on its own, or maybe ICBC is one of APPLE's acquiring banks, so judging from this special case of cooperation between APPLE and ICBC, ICBC may not make money directly.
2. Increased user stickiness.
When the credit card market was booming a few years ago, everyone was pursuing card issuance volume. According to the card issuance volume disclosed by each bank, ICBC should have issued 20 to 30 million cards. China's current target population that is eligible for credit card issuance is actually limited, only tens of millions, so who doesn't have a few bank cards in their hands now? Many times, card issuing banks use small gifts or small cash rebates to increase their card issuance volume. At the same time, cardholders are not fools. Many people fill out the application form and get gifts. If they do not open the card after receiving the credit card, the card issuer will issue the card in vain. Even if some cardholders open this card for a while, when they find that they have multiple credit cards in their hands after a while, they may filter out the cards that are not commonly used. ICBC cooperates with APPLE and uses interest-free and fee-free installment payment methods to attract cardholders to use this credit card. Assuming that the cardholder makes 24 installments and the repayment amount per installment is 149.5 yuan, at least in the future Within two years, even if he cancels all other credit cards in his hand, he will still keep this ICBC credit card. Assuming that he uses this credit card to spend another 1,000 yuan every month, ICBC will still have the opportunity to charge the card issuer fees. Make money in other ways.
3. Enhance the ICBC brand.
APPLESTORE Online initially cooperated with CMB to launch installment payment services. Later, ICBC joined in and became a 2-choose-1. Now, for the first time, the ICBC LOGO appears on the page (see attached picture, personal I have the impression that this is the first time that the logos of other companies have appeared on APPLE China's webpage. China Unicom and China Telecom seem to have never received this treatment.) Given APPLE’s influence among the current Chinese people with purchasing power, any Chinese company that launches a cooperation concept with it will be given a high-end, grand, and upscale halo, and consumers will more or less recognize this company.
4. Cultivate users’ consumption habits.
The cost of promotion and publicity for users to use a new service is often huge, and free is one of the motivations for customers to have the courage to try it. The interest-free and fee-free installment payment launched by ICBC may be a stepping stone for cardholders to understand and be willing to try the installment payment service. Once the cardholder realizes the financial convenience brought by this service, he may be willing to pay (i.e. handling fee or interest) next time to purchase the installment service from the card issuer