Chapter 649: New Payment Methods

Jingdong is a competitor of Alibaba in e-commerce, while Group-Buy is now competing with Alibaba in the payment market. Together, they have pushed the user count of Cloud Flash Pay to a new peak.

Currently, the transaction volume of Group-Buy’s Cloud Flash Pay has reached the market share that Alipay holds in the e-commerce sector.

However, as Alipay focuses on expanding its offline payment market, Cloud Flash Pay’s achievements in the online market are somewhat overshadowed.

“The promotional efforts of Alipay are simply too formidable.”

“If Alibaba occupies the offline payment market first, no matter how well Cloud Flash Pay performs online, the chances of turning the situation around are quite slim.”

“Exactly. Payment software is inherently different from other types of software.”

Payment apps differ from e-commerce and food delivery platforms; it’s tough for users to get advantages just on payments. So, the only way these apps can retain customers is by being convenient and fast.

For this reason, the market share in the payment sector does not fluctuate too violently. Basically, whoever captures the customers first will likely win.

This win isn’t absolute, but a dominant position is certainly hard to replace.

Having hundreds of thousands in Alipay, you wouldn’t withdraw it just because Cloud Flash Pay is calling loud.

Hence, companies developing payment apps all vie to acquire the customer’s first usage.

Currently, Cloud Flash Pay has just caught up with Alipay’s online rhythm; it hasn’t started offline yet, which does not bode well for its long-term prospects.

The founder of Hungry Yet?, Zhang Xuhao, shares this view.

Pang Rui promised him that once the offline payment market is fully deployed, Hungry Yet? would integrate it.

Therefore, the better Alipay performs, the more it helps Hungry Yet?.

Riding this wave, Hungry Yet? is also beginning to invest in the college student market, attempting to catch up with Group-Buy’s food delivery service.

Honestly, Zhang Xuhao feels he’s hit a good streak.

Why?

Because when they initially turned to grab the college student market, they were really afraid that Group-Buy’s food delivery might catch up again. But now, Group-Buy’s focus has suddenly shifted to the payment market, and they are less concerned about the food delivery market.

From summer to autumn, Hungry Yet? saw a 326% increase in business volume in university towns.

According to previous market shares, they have actually returned to the levels they had during their rivalry with Meal Point.

However, Chen Jiaxin is somewhat worried about Zhang Xuhao’s optimism, these worries are baseless and stem only from an understanding of Jiang Qin.

“Something’s not right.”

“Didn’t Group-Buy’s street promotion start the moment Cloud Flash Pay was launched?”

“Where did those promoters go?”

Located at the forefront of the market and competing directly with Group-Buy, Hungry Yet? is quite aware of Group-Buy’s movements.

Chen Jiaxin noticed some activity at Group-Buy’s branches in July and also received feedback from the marketing department that Group-Buy’s street promotions had started up again, but because Cloud Flash Pay online was gaining momentum, everyone’s attention was quickly diverted.

But if you think about it, where did Group-Buy’s street promotions go?

Chen Jiaxin was momentarily startled, realizing a problem, a frown quickly forming.

It’s mid-October and the scent of autumn is gradually becoming noticeable.

For the northern regions, autumn is probably the shortest season because summer tends to dominate and stretches long, while winter often arrives fiercely due to the addition of cold air.

But it must be said, autumn is indeed a very comfortable season.

At just past eight in the morning, freshman Zhang Ming got up early to go for a club interview and stopped by the school cafeteria on the way. He was taken aback upon entering.

The cafeteria was plastered with Cloud Flash Pay posters. Besides, next to the original card machine at the clean and bright food window, there was a new QR code sticker saying, “Use Cloud Flash Pay, enjoy a 20% discount.”

Zhang Ming bought a tray of steamed buns and saw many seniors already using Cloud Flash Pay.

In college, losing a meal card happens so often it isn’t considered a part of the college experience unless it happens two to three times a semester. Some students, after losing their cards, lazily rely on giving cash to their dorm mates year after year…

So, when the cafeteria supported Cloud Flash Pay, the number of student users surged.

Zhang Ming isn’t someone who chases trends and he prefers using Alipay, so he still used his meal card and then went to his club interview.

After the interview, Zhang Ming met up with his girlfriend.

The two were high school sweethearts and had a strong relationship, already dreaming of graduating together, taking post-graduate exams together, and then marrying and having children.

“Zhang Ming, give me your phone. I’ll go buy some milk tea.”

“Oh, okay.”

Zhang Ming handed his phone to his girlfriend and then quietly waited at the corner.

It wasn’t long before his girlfriend returned with two cups of Xitian’s “Confession” series, and Zhang Ming’s ZTE N88 now had a new icon for Cloud Flash Pay.

“?”

“Xitian has a discount with Cloud Flash Pay, 20% off. Seems like it works in the school supermarket too, and for ordering food delivery as well.”

Zhang Ming acknowledged and began using Cloud Flash Pay the next morning for his breakfast. At noon, he ordered food delivery to his dorm and used it for online shopping on Jingdong…

The first to feel the impact was Hungry Yet?. From mid-October, their business volume gradually began to slip.

Zhang Xuhao immediately sensed something amiss and quickly called the city manager.

“They’re burning cash.”

“Group-Buy’s food delivery service burning cash again?”

“No, it’s Cloud Flash Pay that’s burning cash but… it’s as if Group-Buy’s food delivery is burning money too.”

“?”

The market manager for Hungry Yet? in Kyoto swallowed nervously: “Ordering food from Group-Buy and then paying with Cloud Flash Pay gets you 20% off. Although the discount is offered by Cloud Flash Pay, it’s essentially as if Group-Buy’s food delivery is offering the discount.”

After listening, Chen Jiaxin sighed: “Got it. He’s using one sum of money to promote two apps, achieving two discounts with one move.”

“Damn…”

Jiang Qin’s business logic is quite straightforward; it’s basically a combo hit.

Group-Buy’s food delivery + Cloud Flash Pay, enjoy 20% off. For users, it’s just switching one payment app, but it leads to two outcomes.

Result one, students switch from Alipay to Cloud Flash Pay; result two, ordering from Group-Buy is cheaper than Hungry Yet?.

Consumers don’t care whether it’s Group-Buy’s food delivery giving the discount or Cloud Flash Pay; the key issue is they’re spending less.

“Their street promotions, while making constant online ad pushes for Cloud Flash Pay, were actually negotiating with college cafeteria contractors.”

“So, we didn’t see them on the streets.”

“From what we’ve gathered, eighty percent of college cafeterias have already implemented Cloud Flash Pay’s QR code payment function.”

After hearing Chen Jiaxin’s analysis, Zhang Xuhao suddenly realized a problem: with Cloud Flash Pay, Group-Buy has already formed a closed loop in the college student market.

If delivery is made via Group-Buy and payments through Group-Buy, and it’s cheaper, Hungry Yet? just doesn’t stand a chance with college students.

But, this might also be an opportunity because Alipay and Hungry Yet? can also team up in this way.

“I’m heading to Hangcheng to invite them to vie for the market. Alibaba wouldn’t ignore such a big opportunity.”

“No use, those cafeteria contractors have signed with the Group-Buy Supply Chain. Another price war, and we are the side that can’t afford to keep up.”

“How the hell is Group-Buy’s supply chain everywhere we go? It’s maddening!”

“Because that supply chain is what we burnt money to build…”

“?????”

The news about Cloud Flash Pay spreading QR code payment in college cafeterias didn’t stay quiet for long, soon it was buzzing everywhere.

They spent the money not only to promote Cloud Flash Pay but also kept Hungry Yet? from exploiting the opportunity, a tactic that truly opened everyone’s eyes.

Most crucially, Group-Buy, originally making no significant moves in the offline payment market, almost caught up with the efforts Alipay made in these two months just by gaining the college student market.

Group-Buy truly lives up to being the company closest to the consumers.

“Boss Pang probably regrets it now…”

“Regrets that decision from that summer.”

Lu Zhichuan and Pang Rui were friends who often dined together and cooperated on many related businesses. However, after Lu Zhichuan left Alibaba, the two lost contact.

But now, as the two companies are at loggerheads, Lu Zhichuan finds it easy to remember this old friend, wondering what his mood might be now.

In fact, during past group-buying wars, if Pang Rui had been ruthless enough to choose Lashou and exploit the online payment difficulties to curb Group-Buy’s expansion, they wouldn’t be facing this situation now.

Even without Group-Buy’s channels, they needed more time to promote, which would have been better than being ambushed in their own camp.

It’s a pity, after all the effort to get the license, Pang Rui was too aggressive back then.

Think about it: from 2004, Alipay carried the burden of operating without a license, stealthily making its way through five long years. Who wouldn’t want to run wild the moment they got the license? How could they resist not using Group-Buy’s channels?

But it’s exactly because of this that they ended up empowering their biggest competitor later on.

Now, Group-Buy’s ecosystem is hamstringing Alibaba, essentially building a high wall between them and the consumers, but Alibaba no longer has anything to hamstring Group-Buy with.

“Boss, the materials required by Wanzhong Mall and Xihan River Qing have been prepared and dispatched.”

“OK, great job. Let the Public Relations and Street Marketing departments take a three-day break.”

“Thank you, boss.”

Jiang Qin sat in the conference room’s boss chair, looking at his Cloud Flash Pay balance, 12.80: “Lanlan, how much is Taobao worth now?”

Wei Lanlan looked up: “It should be valued at around 50 billion.”

“50 billion? Su Nai, can you do some backend manipulation for me, change my balance to 50 billion, and I’ll use Cloud Flash Pay to scan and buy Taobao?”

“?????”

Lu Zhichuan shivered beside him, thinking, the boss, this humanoid creature, is terrifyingly ruthless.