China Merchants Bank

Having partnered with China Mobile IoT and China Unicom Wo-Wallet, Wiseasy is kicking off a new round of cooperation with China Merchants Bank (CMB).

Our partner this time is the Credit Card Center of China Merchants Bank Co., Ltd. (CMB). The strategic partnership between the two parties is dependent on WANG POS, a commercial smart device: Wiseasy is leading the comprehensive management, customer services and operation & maintenance of the device, while CMB is focusing itself on business expansion. This partnership has lifted the O&M burden on CMB’s Credit Card Center, making it easier for CMB to cooperate with a broad range of retailers.

The Advent of “Cardless Payment”

The impact of Internet finance to real banks is primarily concentrating on retailing businesses, with means of payment the most heavily hit. As mobile payments are flourishing, users have developed a new habit of clicking mobile phones to pay in just a few seconds, without the fuss of swiping cards at the cash register. This means an increasingly narrow space for the existence of banking cards.

How to activate credit card users and increase their frequency of using cards is a challenge facing CMB.

Application Options for Credit Card Points

CMB’s credit card users have racked up a lot of rewards points. Normally they tend to redeem the points for some gifts or goods. However, these goods cost some money and the delivery fees arising from here are not cheap for the bank itself.

What if these points can be capitalized on? Will it be able to activate the credit card users and encourage them to swipe their cards?

But before that, there is a big hurdle to cross for CMB Credit Card Center – how to create application options for consumers? Reward points can be converted into some real goods: e.g. drink coupons, coffees, or desserts.

A payment channel is a must before the options can be offered. A POS terminal and cash register was normally the solution for credit card users, but this does not work well in the era of mobile payment.

First, the traditional POS device can hardly meet the new requirements on mobile payment because it is complicated to use, slow in response, and with a truly high training cost.

Second, cash register’s PCs can play a part in mobile payment, yet the cashier is required to open various kinds of windows on the screen, input coupon/voucher numbers one by one, not to mention having to tackle with network instability, or computer shutdown…this not only keeps users wait for a longer time, but hampers the consumer experience.

In this context, we began to contact CMB in 2014; and this year, both parties agreed to promote our cooperation in all aspects after several rounds of discussions.

WPOS possesses all security certificates issued by China UnionPay and supports the function of redeeming reward points. Given the needs of CMB and the features of WPOS, both parties proposed a new solution for redeeming credit card points and converting points into cash.

The QR code payment technology has been developed for CMB credit cards, with cash coupons linking online and offline payments, and reward points converted into discounts or offers. As a commercial smart device applied in some big cities of China, WPOS has materialized the concept of “virtual currency” and broken down the barrier of mobile payments by dealing reward points as virtual money.

When you buy things in a cafe, a hot-pot restaurant or a dessert shop, you can scan the “Palm Housekeeper” on WPOS to pay via either reward points or cash coupons. The extra expenses can be paid by credit cards through the WPOS system. Thus, users redeem reward points and pay for their expenses all at once, without using any cash – a significant enhancement to their experience. This not only brings real benefits to users, but more importantly activates credit card points and drives users to pay by credit cards. “ Kill three birds by one shot!”

A Secure and Smart System to Meet CMB’s Needs

As everyone knows, security is the cornerstone of banks in fostering finance and payment innovations. Without a reliable payment channel, there would be no way that innovations may occur.

As a product of joint efforts, WANG POS has passed all security certifications of UnionPay and employed an upgraded Chinese encryption algorism.
To meet the special requirements of CMB, the “Palm Housekeeper” feature has been installed in the system to support such functions as converting credit card points into cash, redeeming cash coupons/vouchers, and providing O&M services to satisfy the business needs of CMB.

Expand the Use of Commercial Smart Devices

Today, Wiseasy is creating an integrated environment that encompasses our lifestyle, daily consumption, and financial activities in various application scenarios, such as “eating”, “drinking”, “playing”, “having fun”, and “travelling”. Through the partnership, we provide CMB with device management, service delivery, and operation & maintenance, so as to streamline their business process, and reduce the burden on their equipment and network. Also, this gives us the opportunity to accelerate innovations in payment methods and solutions using commercial smart devices in the new retailing era.