Becoming Rich with Daily Scavenging APP-Chapter 526: Payment License

The business Schaefer has brought to the table seems quite simple to get going.

Chen Yiyang invested some money in a local photovoltaic company and helped them secure the deal.

Once the order is in hand, whether there will be further issues remains uncertain. After all, the United Kingdom has a history of unilaterally breaching contracts.

Now, Chen Yiyang is focusing on the flash sale battle.

Originally ranked third in the flash sale field, Yiyang Flash Sale, through the linkage with Kuxing and the ice cream factory, managed to climb to second place in market share.

Currently, Ugly Group still holds the top market share in the flash sale sector.

After all, Ugly Group has monopolized this field for years, holding an absolute advantage.

Previously, the delivery battle with Jindong only managed to chip away a small corner of Ugly Group’s monopoly.

Taobao initially intended to boost its share to a level comparable to Ugly Group’s.

Unexpectedly, after pouring in hundreds of billions, not only did Taobao’s share not increase, but Chen Yiyang’s Yiyang Flash Sale caught up.

This put Ali in a defensive stance.

As a result, an attack in public opinion arrived unexpectedly.

"Aren’t you going to take care of this?"

Chen Yiyang went directly to Yang Chengru, showing him the recent news reports.

"Ali’s media matrix is accusing me of disrupting the film market, causing a film industry ’cold winter’ this year? Is this something a human could say?"

Exactly, these people from Ali, unable to confront him directly, turned their focus to the realm of public opinion.

This time they chose a particularly eccentric angle.

This year, the film industry has officially entered a ’cold winter’.

Last year, there were Earth Wandering 2 and Full River Red. This year, the highest-grossing film is Dangal, which Chen Yiyang imported from India.

Such dismal results have put many cinemas on the brink of bankruptcy due to lack of profitability.

Therefore, Ali shifted the blame to Chen Yiyang.

First, they accused Chen Yiyang of interfering with cinema scheduling last year, leading Earth Wandering 2 to an unusually high number of screenings, setting a bad precedent.

Then they said Chen Yiyang only picks profitable films to invest in and doesn’t contribute to the industry. He tries every way to invest in money-making films while refusing to invest a penny in those that don’t.

Finally, they blamed him for importing foreign films, impacting the normal development of the domestic film industry, resulting in this year’s ’cold winter’ for films.

Reading these reports amused Chen Yiyang quite a bit.

The most absurd accusation was saying he only invests in profitable films.

What, should industry development rely on non-profitable trash films created just to promote actor offspring or idols instead of money-making movies?

"If it were another company behaving this way, we certainly would intervene."

Yang Chengru spread his hands helplessly, "But that’s Ali."

"What, are they untouchable?"

"What are you thinking?" Yang Chengru continued, "Standing behind Ali is another faction. If we were addressing other enterprises, I could mobilize the entire Lin’an City’s resources for you.

But this now equates to an internal conflict. If I say a word about protecting local entrepreneurs and combating misinformation, the other side claims there’s no misinformation, making it impossible to proceed with this task."

Ali has ingrained itself in Lin’an City for many years, accumulating connections Chen Yiyang couldn’t have imagined.

Fortunately, though, Chen Yiyang can’t match Ali, he also isn’t easily bullied. Therefore, Ali can only resort to these minor tactics to irritate him.

"Well then, I can ignore Ali bothering me, but if my company continues to develop in Lin’an, the Lin’an Government needs to support me."

"What kind of support do you want? Subsidies or policy advantages?" Yang Chengru realized that Chen Yiyang wasn’t targeting Ali today; he had another purpose.

"I don’t want subsidies or policy advantages; I want a payment license for Yiyang Flash Sale," Chen Yiyang stated his goal.

"You really dare to ask for it." Yang Chengru was slightly shocked by Chen Yiyang’s request.

A payment license, also known as a Payment Business License, is established to strengthen the management of non-financial institutions engaged in payment business, so no institution or individual, without authorization, shall engage in or disguise engagement in payment-related business.

Payment licenses are useful mainly because they allow licensed enterprises to directly settle funds with downstream merchants.

If such a license isn’t available, settlements can still be done via licensed companies, but regardless whether it’s Flash Pay, MicroPay, or Rich Pay, there’s a channel fee.

This fee may seem minor at a glance, but with the rapid growth of Yiyang Flash Sale’s business, it becomes quite considerable.

More importantly, each transaction at Yiyang Flash Sale has to pay a fee to payment channels with a license, effectively adding another fixed cost.

It’s a cost Chen Yiyang can’t accept under any circumstances.

To date, 270 payment licenses have been issued domestically.

The number seems large, but having a payment license isn’t worry-free; they need periodic reviews every few years, and so far, ninety companies have failed those reviews and had their licenses revoked.

This situation has led some small and medium-sized payment license companies to accept acquisition offers from big companies as a solution to avoid failing reviews.

Most larger online companies have acquired companies with payment licenses, securing their own payment licenses.

The most typical of these is the Ugly Group.

Now eagerly asking users to bind their bank cards for payments to avoid paying channel fees through MicroPay or Rich Pay.

This is why platforms like Ugly Group and Jindong, if you bind your bank card and use their payment licenses, often offer direct discounts of about ten yuan on initial binds.

That’s because, compared to the discount, it costs them more when you continue using MicroPay or Rich Pay.

"Why wouldn’t I dare to ask for it?" Chen Yiyang tapped his fingers on the table and said, "Which internet giant doesn’t have its own payment license now?

My game company, flash sale company, car company, all accept direct online payments, and without a payment license, we’d spend a lot more money each year."

"But the problem is, since 2016, issuance of new payment licenses has been halted," Yang Chengru said, "This is the top-level policy, and I can’t help navigate through such high levels."

"Of course, I know that," Chen Yiyang wasn’t really expecting Lin’an to get a new payment license for him.

It would probably require developing two-nanometer chips and every process from lithography to tape-out to be in place before that could happen.