Representatives of the four major banks were shocked. Beibao was also Feng’s company? ! Beibao was not developed by eBay, but by another company, but their first big customer was eBay. eBay once wanted to acquire Beibao, but was stopped by Kirilenko.
Because Beibao had already been acquired by Feng Yu.
eBay originally planned to spend US$300 million to acquire Beibao, but Beibao's shareholders believed that Beibao was very valuable, at least US$600 million. Although at this time, Beibao has not yet been listed, and its market value is not worth US$100 million.
The price difference between the two parties is doubled, so the negotiation is naturally unlikely to succeed. However, Feng Yu waved his hand and asked Ralph to negotiate. It didn't matter if the price was higher, but the important thing was that it had to be fast.
As a result, Feng Yu bought Beibao directly for US$600 million without any expense. At the same time, the two founders of Beibao were given 4% of the shares each, allowing them to continue to manage Beibao. The original technical team of Beibao was also awarded 2% of the shares, allowing them to continue to provide technical support for Beibao.
With Bei Bao, why does Feng Yu need to develop a payment package
There are two reasons for this. The first point is that there is still a big difference between Beibao and Alipay. The second point is that after a company achieves a de facto monopoly, it will inevitably be targeted by the entire industry. For example, Microsoft was almost forced to split up, and Yahu has been split into Yahu America, Yahu Asia, Yahu Europe and other companies.
Rather than being split up, it is better to create a competitor yourself, which will not form a monopoly and can more comprehensively occupy the third-party payment platform market.
In the previous life, the development direction of Beibao and eBay was very different. Beibao was equivalent to an online credit card, while payment package was equivalent to an online savings card.
When Beibao was first designed, it was based on online banking and slowly developed into a virtual credit card. The design of the payment package is based on payment guarantee. Guarantee is the core, and it is slowly developing towards a virtual savings card.
Beibao has expensive handling fees, which is the main source of profit for Beibao. The payment package is mainly an account. Whether it is the accumulation of funds or the value of big data based on consumption data, it is more important than the handling fee. But this has affected the interests of those banks.
So in the previous life, Beibao developed very quickly, but the development of payment packages abroad was a bit slow because of the resistance from those banks. Of course, it is best for the bank itself to know about things like accounts.
Beibao tends to protect buyers and can refuse payment as long as the buyer has objections. The payment package tends to protect sellers. Is Amazon a B2C model? The seller is the company itself. This can effectively prevent buyers from refusing to pay after taking the goods.
Beibao is more suitable for Westerners who like to spend money in advance, while Paypack is more suitable for Asians who don't like to spend money in advance. Even before Feng Yu was reborn, many Chinese people had never used a credit card in their lives. In many countries such as Europe and the United States, when they are old enough to apply for a credit card, they will apply as soon as possible.
Credit cards can stimulate consumption, but they can easily lead to a subprime mortgage crisis, which is the so-called fraud. You don’t need to have income, take a loan from Bank A for consumption, then take a loan from Bank B, repay Bank A’s credit card, then take a loan from Bank C, and repay Bank B’s credit card.
After loans and repayments accumulate to a certain amount, the overdraft amount will increase due to the improvement of credit. It seems to be a good way to never make money but to have money to spend.
But when there is a problem in any of these links, the person will go bankrupt. If it goes bankrupt, it will create a bad debt. It doesn't matter if one or two people are like this, but when one million, two million people are like this, or even more people are like this, then a crisis will come.
Therefore, Beipay and Alipay are still very different. They can cooperate to a certain extent in the future, but they will definitely not merge.
Of course, in the previous life, Alipay was limited in its development in China, and the settlement currency was RMB, while Beibao was born with the golden key of the global settlement currency, the US dollar, so Alipay was suppressed by Beibao from the beginning. .
But after Alipay entered the United States, didn't Alipay make a turnaround? The biggest advantage of Alipay is that it does not require such high handling fees. Alipay will bear part of this money, and the bank will waive part of it, giving customers the greatest discount.
Anyway, Alipay has an account in hand, so there is no chance of making money. What's more, Alipay also has a seven-day delayed settlement feature, which allows Alipay to have more cash deposits, which is equivalent to using customers' money to invest and make money.
If under Feng Yu’s command, the investment cannot earn back the handling fees, then Alipay has failed!
Moreover, there is one big difference between Bei Bao and payment package, that is, Bei Bao sellers can withdraw cash immediately, while with payment package, unless the buyer confirms, they have to wait for seven days, and the buyer can even extend the payment.
There are some other differences between the two payment platforms. Of course, they also have something in common, that is, they both focus on online payment business, and their main business entities are relatively similar.
Of course, Feng Yu would not explain these details to these bank representatives. To put it bluntly, Beibao and the others could easily accept it and get good profits from it. But the payment package is different, which is equivalent to taking away a large part of their profits.
"Mr. Feng, we can make Beibao develop faster, but we think the payment package model is not suitable." Yuntong's representative said.
"Isn't it appropriate? What's inappropriate? I won't pay you less for the handling fee, but our user traffic is so large, which is also good for your development, so in terms of handling fees, you should Give us a discount.”
"Mr. Feng, the payment package you mentioned will leak customer privacy. We think this is very inappropriate."
Reveal customer privacy? What nonsense! It seems like your bank doesn't have control over customer privacy. Why, only the state officials are allowed to set fires, but the people are not allowed to light lamps
To put it bluntly, the bank still wants to keep the account in its own hands and does not want to be divided by others.
"What if I allow you to invest in this payment package in the future?" Well, in the future, they will only be allowed to invest in the payment package in the United States in exchange for their support for this payment package.
"The future is too far away. If we are asked to invest now, we can consider it." Huaqi's representative's eyes revealed a shrewd light.
He was talking about buying shares, not financing, which meant that he wanted voting rights and became one of the real bosses of the payment package company.
"Do you all think so? Then you can leave. You are not the only four banks in the United States!"
(End of chapter)