[Summary]

1. The prepaid card industry is very scattered. The largest prepaid card company has a share of less than 1%, about 20 billion dollars. The industry is very rudimentary; it's basically gifts and tax avoidance functions.

2. Now QR code payments have been stopped by the central bank. The way online payments go offline is not in line with the central bank's regulations. The central bank's way of thinking is to separate online and offline. MicroPOS is not certified by UnionPay, and has technical risks and conflict of interest patterns. Prepaid cards are micropayments. They are a vehicle and tool for making micropayments. They are not the same as the bank's big account system. Apart from having to separate online and offline, what the central bank wants to block is super accounts, and it cannot compete head-on with banks. The central bank's position on third-party payments is actually micropayments and fragmented financial services.

3. The central bank will no longer issue national prepaid card licenses. The reason is: Currently, there are no cross-regional usage habits for prepaid cards in China, and anti-corruption reasons.

4. In the traditional offline process of running business and making payments online, this process is not easy to achieve. It connects more than 3,000 people, and the landing workload is very heavy, and the landing is labor-intensive. The ability of merchants to execute IT is also a major challenge.