China Union Pay Profit Model Innovation Research

With the opening of the domestic payment and clearing market and the rapid development of mobile Internet, China UnionPay is facing a huge challenge in the profit model. In particular, led by Alipay, the use of the third party online payment platform makes the profit of China UnionPay has been greatly affected. Although in the course of the previous industry competition, China UnionPay has also carried out the relevant profit model innovation, but its innovation was not enough in the intensity, depth and scope. So China Unionpay gradually falls into a stalemate in the profit model when it faces the growing development of innovative payment platform.In order to change this predicament, this paper tries to explore the research of China UnionPay’s strategic transformation from the perspective of profit model innovation. In this paper, it elaborates the overall situation and development trend of the payment industry; summarizes the current situation of China UnionPay’s profit model and analyzes the shortcomings of China UnionPay under the Internet environment. And it puts forward some innovation of profit suggestions combined with the theory of value chain on how to effectively integrate internal and external resources and how to seize the opportunity to reform the innovation for China Unionpay.This study has three main focuses:First, China UnionPay. China UnionPay as the core enterprise of China’s bank card industry, how to establish its own profit model in order to stabilize the supporting position in the bank card system under the rapid development of the mobile Internet industry business environment. Second, profit model. In this paper, the purpose of selecting China UnionPay as the main subject is to explore the survival strategy of enterprises in the Internet environment, and the key to the survival of the enterprise is to make a profit. Therefore, this article selects the angle of the enterprise profit to explore how the enterprise should carry on the transformation and upgrade in the current Internet environment. The innovation of the profit model of China UnionPay will change the development of enterprises to a certain extent, and ultimately achieve the long-term survival of the enterprise. Third, the value chains. The current social competition is becoming increasingly fierce, so enterprises need to obtain competitive advantages and improve the value of output. In this paper, it analyzes the strategic significance of the key link through the research of the enterprise internal value chain and makes the business activities which are different from other enterprises. By studying the industrial chain of value activities to weigh the pros and cons to obtain the best investment project, to achieve the development of the whole industry and common prosperity eventually.