1. Online payment solution in China
by

2. Summary
• Payment Gateway vs Third
Party Payment
• Stakeholders of Payment
Gateway in Asia
1
2

3. Payment Gateway
vs
Third Party Payment
1

4. Payment Gateway vs. Third Party Payment
What is a Third Party Payment
lower setup
fees
fixed
monthly
costs
charge a
higher
discount rate
(as much as
5.5%).
cheaper for very
small business
(<$5000/ month)
• A Third Party Processor does not require its
merchants to obtain a merchant account, so
they are able to start processing transactions
much quicker
• The initial costs may seem cheaper
• The fees which are charged are higher
• Less expensive in the short term and that is
why so many new online businesses choose to
start with some of them like PayPal.
• Their name shows up on the customer’s credit
card bill
• They are responsible fraudulent transactions

5. Example of fees
(PayPal)
TRANSACTION FEE FOR
ONLINE PAYMENTS
(based on monthly sales)
PayPal fees
$0 to $3,000 2.9% + $0.30 per
transaction
$3,001+ to $10,000 2.5% + $0.30 per
transaction
$10,001 to $100,000 2.2% + $0.30 per
transaction
$100,001+ 2.2% + $0.30 per
transaction
Deal Flow Rate Term of service
0 - 60k 1.20% 1 year
60 - 500k 1.00% 1 year
500k – 1M 0.90% 1 year
1M – 2M 0.80% 1 year
2M - X 0.70% 1 year
Example of fees
Alipay
Payment Gateway vs. Third Party Payment
What is a Third Party Payment

6. How Third Party Payment Works
(escrow)
Buyer pays with
Alipay
Alipay tells the
merchant that the
money is here
Merchant delivers the
product
Payment is released after
buyer confirms delivery
1 2
3
4
Payment Gateway vs. Third Party Payment
What is a Third Party Payment
MerchantConsumer
3rd PP

7. • E-commerce application who provides
the interface between your
website/computer and your Merchant
Account Provider, with a direct
integration.
• The equivalent of a physical point of
sale terminal located in most retail outlets.
• Payment gateways protect credit card
details by encrypting sensitive information,
such as credit card numbers
higher
setup fees
monthly
and
up-front
costs
lower discount
and
per-
transaction
rate
Cheaper for
bigger business
(>$5000/Month)
Payment Gateway vs. Third Party Payment
What is a Payment Gateway

8. Example of fees
(Eway - Australia)
Annual Fees Eway fees
$399
(5free transactions/month)
$0.60 per transaction
$799
(200 free transactions/month)
$0.40 per transaction
$1499
(400free transactions/month)
$0.22 per transaction
Payment Gateway vs. Third Party Payment
What is a Payment Gateway

9. How Payment Gateway Working
User places
order
Merchant’s
Web Server
Payment
Gateway
BankMerchant
Request payment
Gateway
Request
to Bank
Bank
Response
Money paid to
Merchant
Payment Gateway
Response
Server
Response
Payment Gateway vs. Third Party Payment
What is a Payment Gateway

10. Stakeholders of Payment
Gateway in China
2

11. Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in China

12. Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
Global

13. Alipay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
Alipay
• China’s leading third-party online payment solution
• More than 550 million registered users
• 8.5 million transactions daily.
• Provides an escrow payment service
• Provides payment solutions for Taobao and Alibaba.com,
and more than 500,000 external merchants for online retail,
virtual gaming, digital communications, commercial
services, air ticketing and utilities fee payment transactions.
• Partners with more than 65 financial institutions, including
19 leading national and 45 regional banks across China, as
well as Visa and MasterCard.
• Facilitates offline value-added services through a
strategic partnership with China Post, which has coverage
of rural areas and university campuses.

14. Alipay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
Alipay
Deal Flow Rate Term of
service
0 - 60k 1.20% 1 year
60 - 500k 1.00% 1 year
500k – 1M 0.90% 1 year
1M – 2M 0.80% 1 year
2M - X 0.70% 1 year
Prepayment Deal flow Term of
service
￥600 60k
1 year
￥1,800 200k
1 year
￥3,600 450k
1 year
Deal flow
rates
Subscription
rates

15. Tenpay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
Tenpay
• The website must be located in mainland China and your site
shall be filed with the authority
• The main competitor of Alipay.
• Developed by Tencent which owns the most popular IM in
China – QQ with more than 300 million users.
• More than 200,000 shopping websites accept Tenpay.
• Compatible with the e-banking service of major domestic
bank.
• Users can use Tenpay to send payment/ Receive payment
• Withdraw money to bank account.
• Use to charge mobile, deposit money to game account, and
buy air ticket.
• Provides an excellent payment platform to corporate
users, covering B2B, B2C and C2C areas.

16. Tenpay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
Tenpay
Prepayment Deal flow
Fee Rate of
Excess Part
Term of
service
Suitable
Commercial
Clients(Average
monthly trade
volume)
￥480 50k 1% 1year <¥5,000
￥1,680 200k 1% 1year <¥20,000
￥3,750 500k 1% 1year <¥50,000
￥7,000 1m 1% 1year <¥100,000
￥12,000 2m 1% 1year <¥200,000
￥25,000 5m 1% 1year <¥400,000
￥45,000 10m 1% 1year >¥500,000

17. 99Bill
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
• The website must be located in mainland China and
your site shall be filed with the authority.
• Has over 80 banking or financial institutions with over
300 access points.
• Has over 1.1 million merchant partners that span 20
industries, including travel business, insurance, online
shopping, logistics, clothing and education.
• First to provide these merchant partners with innovative
services like no-card credit card payment, large-amount
online payment support and IVR voice payment.

18. 99Bill
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
Payment category Register or not Fee/Rate
Bank card payment No 1%(0.01yuan minmum)
99bill account payment Yes 1%(0.01yuan minmum)
Telephone bank
payment
No
1%(0.01yuan minmum)
Offline payment No ¥1 each

19. China
UnionPay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
• The only bankcard organization in China. Three in ten
cards worldwide are a Union Pay Card
• English gateway
• 48h approval
• No China entity required
• No china bank account required
• Flat low service rate.

20. China
UnionPay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
Merchant Location China
Discount Rate Rates from 0.7%
Activation Fee $250.00
Monthly Account Fee $25.00 USD per month
Transaction Fee
From 5 cents USD per
transaction
Rolling Reserve 2% of gross volume*
Payment Currency ¥ CNY (RMB)
Settlement Currency ¥ CNY (RMB)
Settlement Timeframe From every 2 days
Cards Accepted
Chinese debit cards and
credit cards
Integration Method
Hosted sales page (https post)
/ Various

21. China PNR
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
• Set up in shanghai in 2006
• Its founder was the former high level executive from
China UnionPay
• Focus on financial payment and industrial chain
Payment
•Specialized in Financial Fund, airline travel, and gaming
industries

22. Yeepay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
YeePay Advantages
• All-In-One Total Solutions for Online, Mobile,
Telephone, POS.
• Value-Added Services including Financial &
Marketing Tools.
• Customized Vertical Solutions for Industry
Specific Applications.
Products & Services
• Online Payment (Gateway & Virtual
Account/e-Wallet)
• Mobile Payment (Flexible Billing: In-App, Pay-
Per-Play, Subscription)
• Telephone Payment (Call Center-based
Solution)
• Point-of-Sale Terminal Payment (Retail)
• Multi-card support: Bank Cards (Debit/Credit)
+ Universal Prepaid Cards
• B2C, B2B, C2C Support
• Credit Payment Service
Major Verticals
• Online Shopping (eCommerce)
• Digital Entertainment (Gaming)
• Air & Travel
• Telecom & Mobile
• Education
• Insurance
• Logistics
Certification/Membership
e-Payment License(Issued by People’s
Bank of China)
Member of China Payment and Clearing
Association
National Information Security Certification
Payment Card Industry Security Standards
ISO/IEC 27001:2005

23. Yeepay
Payment Gateway vs. Third Party Payment
Stakeholders of Payment
Gateway in Asia
Payment category Fee/Rate
Online payment 1%
Easyown rechargeable
phone card
1%
Jcard 1%

24. L’Atelier Management Consulting (Shanghai) Ltd.
Cloud Nine Plaza, 9/F
1118, West Yan'an Road | 200052 Shanghai | China
T 86 21 62 81 85 33 | www.atelier.net | asia@mail.atelier.net