W36 - Business Value of Quick Payments and Loan Payments

A new understanding of the business value of quick-pay and loan-pay for B-side clients.

From the B2B OKR perspective, there are two core metrics in total.

One is the fund closed-loop rate, whose main achievement paths are balance payments, pending settlement payments, and wealth management payments. Its significance lies in the extent to which settlement funds are consumed within the merchant system. By this logic, quick-pay and loan-pay do not contribute to the fund closed-loop rate.

The other metric is the merchant financial services penetration rate. As a standard payment capability, quick-pay can cover more business scenarios and a wider user base compared with other proprietary B-side payment methods; users have stronger awareness of and higher acceptance for quick-pay. Therefore, in early value estimates, quick-pay was expected to contribute 1.82% to merchant penetration, accounting for more than half of the overall OKR. The overall B2B payment OKR is 3%.

Quick-pay and loan-pay can also deliver some direct business revenue. According to estimates, in 2020 quick-pay could save 2.39 million in channel fees. Loan-pay could generate 2.56 million in interest income.

Finally, quick-pay is highly significant for account accumulation. This aligns with the financial services LRP strategy that centers on the account system: using high-frequency activity to drive low-frequency activity and empower B-side deposit and loan businesses.

The upcoming marketing capability build-out is the final push for this year’s new payment capabilities to contribute to the two metrics above and is crucial to achieving this year’s OKRs.