Reborn in 08, a heretical cultivator starting a business

Chapter 51 Payment Interface: Laying Out Payment!

Wang Junshan looked again at Yu Xingwen, the head of the warehousing department:

"YouTuan will be launched in a week, and the warehousing center also needs to be set up as soon as possible. What are your plans?"

Yu Xingwen was prepared:
"President, we will mainly lease warehouses in the early stages. Later, as the scale increases, we can build our own warehouses and lease them in addition to leasing them."

“The five schools we currently cover are all in Shishan District. Based on the principle of proximity, our central warehouse can be built in Shishan District.”

"Of course, Shishan District is an affluent area, so rents are expensive in the city center, but they are very cheap in the villages!"

Wang Junshan nodded. "That's a good idea."

These days, there isn't much large-scale demolition and construction yet.

Ten years later, many places in Shishan District have become luxury homes costing tens of thousands of yuan per square meter, but they are still small fishing villages that have not been demolished!
The rent in the village is much cheaper.

Without demolition and relocation, we're all just ordinary dogs.

Once the land is demolished, some of the stray dogs will be transformed into golden phoenixes!
"As for the specific location, we can choose a village located in the center of one of the five universities, which is the closest to the delivery location, only three or four kilometers away!" Yu Xingwen said.

Wang Junshan waved his hand: "Being close to the university makes delivery to the university shorter, but it makes procurement inconvenient!"

"Why not rent a large warehouse in Xinjiazhuang to serve as YouTuan's central warehouse?"

Yu Xingwen's eyes lit up, and he instantly understood Wang Junshan's plan: "The president is brilliant!"

"Next to Xinjiazhuang is Hongyun Wholesale Market, the largest fruit, vegetable and non-staple food wholesale market in Binhai City."

"We can just buy whatever we need directly. The vendors are so close that they can deliver it to our central warehouse for free. All we need to do is repackage it and send it to the various universities!"

"As for repackaging, we can hire people from Xinjiazhuang to do the repackaging and packaging. The hourly wage is only six or seven yuan."

"From the Xinjiazhuang warehouse to the five universities, it's only ten kilometers, not far at all!"

Wang Junshan nodded: "That's right, let's arrange it that way. Sign up a few regular, high-quality suppliers at Hongyun Wholesale Market."

"Consumers place orders on YouTuan.com, and the order deadline is 11 p.m.

"After the order deadline, YouTuan.com automatically generates a purchase order, which we use to contact our regular suppliers to make purchases."

"The supplier sourced the goods from the Hongyun Wholesale Market next door and delivered them to the Xinjiazhuang Warehouse."

"Then we hired nearby residents to pack and repackage the goods overnight, and sort them according to different schools."

"The next morning, the truck was loaded onto the truck, and the drivers delivered the repackaged goods to the pick-up points at various universities in turn."

"Starting from Dacang in Xinjiazhuang, first go to Binzhou University, then to Hotel Management, Hengxing Vocational College, University of Science and Technology of China, Qin University, and finally return to Dacang, making a perfect loop!"

"As for how the goods will be delivered to the school? It's simple, just pick them up at the YouTuan pick-up point."

"We can launch a home delivery service later, hire students part-time, pay 3 yuan per order, and the platform will take a 1 yuan commission!"

Upon hearing this, everyone suddenly understood and praised it highly.

I now have a complete understanding of how U-Tuan.com operates.

"YouTuan.com will launch in one week. Get warehousing and logistics sorted out as quickly as possible! Meeting adjourned!" "Yes, sir!"

Everyone responded and went about their own business.

Tang Jinghe left it at the end: "Chairman, I've also finalized the server arrangements. The initial order volume isn't large, so we don't need too many servers."

"Once the summer vacation and school starts, we can increase orders at any time."

“Sure. What about the payment interface?” Wang Junshan asked, as this was also crucial.

More than ten days ago, he sent Tang Jinghe to talk to him.

"I have worked with payment interfaces such as UnionPay, Alipay, Tenpay, and 99Bill."

"UnionPay has a market share of over 60%, but it's too cumbersome. It requires signing agreements with every bank individually, and the technical integration is complex. It's suitable for medium to large e-commerce companies, but we're just starting out, so it's unnecessary for us. Besides, we can't complete it in the short term."

"Alipay has a 25% market share, a 1.2% fee rate for non-Taobao users, and funds can be received within T+1."

"Tenpay has a 5% market share, and the fee rate for non-QQ Mall users can reach 1%, but the payment is processed on T+2."

"99Bill has a 2% market share, and can negotiate fees down to 1% or even 0.7%, but it only settles accounts on a T+3 basis, and it has few users!"

"All things considered, Alipay is the most suitable. It has many users and the funds arrive the fastest, so I chose Alipay."

“Sure, we can use Alipay as the payment interface initially, and then introduce online banking as the business grows.” Wang Junshan had no objections.

The sooner the money arrives, the sooner we have working capital.

This is very important for startups.

Tenpay's T+2 payment method means one less day of working capital!

Moreover, in 2008, Tenpay did not have the support of WeChat, and QQ Wallet had not yet appeared. Its user base was far smaller than Alipay's, and its market share was only one-fifth of Alipay's.

YouTuan had no choice.

As for using Alipay for payment, if YouTuan grows bigger and falls out with Alibaba, will it be able to restrict its access to services?
That's not a big problem.

If it really grows big, UnionPay and Tenpay have already integrated with it, so there's no need to worry about it being blocked.

More importantly, relying on third-party payment methods has always put us at a disadvantage.

Developing your own payment system is the key to success!
YouTuan's future revenue will become terrifying, and Wang Junshan doesn't want to keep paying 1.2% handling fees to third parties.

More importantly, there was no such thing as a payment license in 2008!
The first batch of payment licenses was issued in 2011, with 27 licenses issued at once!
In other words, in 2008, regulations were lax, and payment services could be conducted without a payment license!

Currently, neither Alipay, Tenpay, nor 99Bill have payment licenses; they are all operating without licenses!
The restrictions continued to tighten.

Alipay, Tenpay, and 99Bill were among the first batch of companies to obtain licenses in 2011, becoming one of the 27 companies that went from having no license to having one.

Opportunities are for those who are prepared.

With three years to go, Wang Junshan is making early preparations to build his own payment platform.

Three years from now, there is a very good chance that we can get a payment license!
(End of this chapter)