Let’s start with Douyin payment. If you have purchased something on Douyin recently, you will find that in addition to WeChat Pay and Alipay, there is also a "Douyin Pay" option when paying. Currently, it can only be tied to ten banks, which is considered an early product. It may be the main promotion of Douyin’s Spring Festival money.

"Douyin Payment" in Douyin e-commerce

By issuing massive red envelopes on New Year's Eve, it was possible to interact with hundreds of millions of viewers, which is how major Internet companies opened up the payment battlefield. important means. Both WeChat and Alipay have benefited from this. In 2015, WeChat Pay issued 500 million red envelopes during the Spring Festival Gala, attracting more than 200 million card users in one night, directly rewriting China's mobile payment landscape. After the Spring Festival, the number of WeChat change users reached 300 million, and WeChat completed the Spring Festival Alipay's eight-year journey can be called a miracle in business history.

Douyin launched its own payment tool on the eve of the Spring Festival. It is obvious that it wants to follow this path. We conservatively predict that if Douyin can gain 50 million card-bound users during the Spring Festival Gala, the average customer acquisition cost for each user will be 24 yuan. This is simply a high cost for customer acquisition that can easily reach hundreds or thousands now. A deal that couldn't be better.

Friends who usually pay attention to the capital market should know about Douyin’s plan to go public in Hong Kong. Before going public, the company will definitely raise its ceiling and tell a better story. This Spring Festival red envelope can actually be regarded as a performance before going public. In the past, there were not many payment scenarios on video platforms, mainly membership fees, rewards, and peripherals. The platform earned only some sporadic gross tickets. The situation has changed in 2020. Live streaming has changed this situation, and those who benefit the most are Short video platform, Douyin Kuaishou has become an e-commerce giant with a GMV of 100 billion this year, so it has become very urgent to have its own payment tool.

Many major Internet companies used WeChat and Alipay for online settlement in the early stages of development. However, as they grow in size, they will inevitably begin to develop their own payment tools. A few months ago, Meituan canceled its cooperation with Alipay and guided users to use Meituan Pay for payment. This caused quite a stir at the time. Later, Meituan founder Wang Xing revealed the reason behind it. It means that Alipay's handling fee is too expensive. Here is some business knowledge that you may not know much about before. When we usually use WeChat and Alipay, we have to charge a handling fee. However, this fee is not charged directly to ordinary users, but to Meituan, Douyin, Kuaishou Such platforms charge. High-frequency trading platforms like Meituan Waimai may pay billions or even tens of billions in handling fees every year. Therefore, this is why Douyin couldn't wait to develop payment tools after its e-commerce business started.

Meituan CEO Wang Xing’s views on social media

Before Douyin, Kuaishou and Bilibili were already intensively preparing their own payment products. Kuaishou has registered the "Laotie Payment" related trademark since last year. At the same time, Kuaishou also obtained a payment license through the acquisition of a payment company. Its prospectus disclosed that Kuaishou signed an agreement to acquire 100 shares of a payment company in August 2020. ***Spent 850 million yuan.

After Douyin Pay is launched, the next step may be to promote its own financial products. Before the launch of Douyin Pay, ByteDance had already launched financial products such as "Anxin Hua" and "Anxin Borrow". In addition, ByteDance also obtained financial licenses for small loans, securities dealers, and insurance brokers. Everything is ready, just harvest! However, according to Zhang Yiming's character, he may not like finance very much, but he can't stand it. Internet finance is so awesome!

Let’s take Ant Group as an example. In the listing prospectus, Ant Group achieved revenue of 118.1 billion yuan in the first three quarters of 2020, of which the gross profit margin exceeded 50%. This is simply picking up money! Although the listing plan has been suspended and the government's supervision of finance has been strengthened, every Internet company still has a financial dream in its heart. Moreover, after Ant was restricted, there were more opportunities in this market, with 6 Douyin, which has a traffic volume of 100 million, must also want a share of the pie.

Of course, there may be other reasons for Douyin to make payments, such as keeping payment transaction data within its own system and serving as a reference for user behavior; exporting payment service capabilities to the B-end and charging a certain amount technical service fees; its own payment products are stable, collaborative, and controllable.