Chapter 1404: Global Payment System

"So Chairman, what is the name of this company?'

'Should it be placed under the Jiuding Financial Group?'

After understanding the positioning of this asset management company, Wang Qi's pressure eased by a large margin, but there were still some things that had not been made clear, so he took the initiative to ask Xia Yu.

Xia Yu shook his head with a smile, 'Don't put it under the Jiuding Financial Group.'

'Let's call the new company Kylin Capital.'

'We are an asset management company that brings good luck and wealth to investors.'

Wang Qi applauded, flattering him lightly: 'The name has a good meaning, and people will be impressed as soon as they hear it.'

Xia Yu laughed and scolded: 'Okay, don't be so pretentious.'

'The asset management business of companies such as Jiuding Bank and Jiuding Securities will not be divided and assigned to Kylin Capital, so after the new company is established, you must immediately find a way to raise funds.'

'However, I will give you the authority to recruit people, and you can recruit people from the entire Jiuding Financial Group to the new company, but the prerequisite is that it does not cause a major impact on the original company.'

Wang Qi hurriedly nodded and said, 'Chairman, don't worry, I will grasp the right degree.'

'Mm.'

Xia Yu nodded slightly, and after a moment of contemplation, he reminded him, 'There is one more thing you must remember. Kylin Capital must differentiate itself from Jiuding Securities when raising funds, so as not to cause misunderstanding among investors.'

'Otherwise, the low management fees and low commissions of Kylin Capital will easily make investors of Jiuding Securities feel unbalanced. If there is an advantage here, conditions must be added in other areas, such as the length of the closed management period.'

'We cannot let investors of Jiuding Securities transfer their funds to Kylin Capital. That would be pointless.'

'Kylin Capital will have to take the cake from its competitors.'

Wang Qizheng nodded emphatically and promised, 'Chairman, don't worry, I will do my best to control the situation.'

'As soon as the company is established, I will immediately formulate a business plan, and I will ask you to give it your approval.'

Xia Yu smiled and agreed: 'Okay.'

'Are there any other questions?'

'No, for now.'

'Okay, you can go back to work.'

'Okay, Chairman, I'll go now.'

After seeing Wang Qi leave, Xia Yu got up and walked around the office a bit to stretch his legs.

After relaxing for ten minutes,

Xia Yu once again got back to work.

After combing through the assets, he discovered three major types of problems.

The establishment of a unicorn capital company did not solve any of these problems.

It merely found a seemingly good solution to the second type of problem.

The faster unicorn capital grows, the more assets it has, and the smaller these problems will become.

No one, not even Xia Yu, can predict when these problems will truly be solved.

After all, the future is full of infinite possibilities, and he may always be short of money...

He had already done his bit to raise money.

But he couldn't neglect the spending side of the equation.

Because there was one market where spending could be generated, and the future was bright.

That was the credit card market!

This was a market where total spending had exceeded the total global cash spending before Xia Yu's rebirth, and it was also destined to be the first to enter the digital currency era in the future.

Before Xia Yu's rebirth, the global credit card spending had exceeded 26 trillion US dollars, and it was still expanding at a very high growth rate every year.

The market value of the credit card giants of the future, Visa and MasterCard, is over 500 billion US dollars and nearly 400 billion US dollars respectively, and there are even more giants behind them.

Of course, a large market with high potential is one thing.

The key reason for entering this market and becoming bigger and stronger is that this is an irresistible trend for any bank.

Behind this is the global payment network system, which is hidden at the bottom and has infinite power!

Unless Xia Yu doesn't want to build a stronger barrier for his financial empire, this matter must be done!

In later generations, there were six major credit card alliances in the world, accounting for more than 90% of the global credit card market.

They are Visa, MasterCard, American Express, Diners Club, JCB, and China UnionPay!

The credit card alliance serves many purposes, but the most important one is to provide a payment card system that clears and settles multiple currencies.

This function can speed up the settlement between financial institutions and greatly improve transaction efficiency.

Xia Yu's banking empire is all over the world, involving a large number of currencies, such as the British pound, US dollar, Japanese yen, Canadian dollar, Hong Kong dollar, etc.

It can be said that except for some small countries, most countries in the world now have his bank branches.

These bank branches belong to different banks and their relationships are not completely open.

Although Xia Yu's Jiuding, Guangming and Polaris consortia have established cooperative relationships with each other and are particularly close,

the resources of the banking empires have only been partially tapped.

A global transaction and payment network is urgently needed to link these banks and achieve further intercommunication of funds and resources.

Without this network, not only will the banks lose out in the future, they will also lose out in the current competition.

Of course, at present, Xia Yu's major banks have basically joined the major credit card organisations.

For example, HSBC has joined the European International Payment Organization and issues Europay cards.

Standard Chartered Bank, Wells Fargo Bank and Northern Trust Company have joined the MasterCard International Organization and issue MasterCard cards.

Australia's Westpac Banking Corporation has joined the American Visa International Organization and issues Visa cards.

The Chiba Bank, Shizuoka Bank and many other banks in the island country have joined the island country's JCB International Organization and issue JCB cards.

Their own banking resources all contribute to these credit card organisations.

Because these credit cards are issued, they must follow the standards and rules of these credit card organisations.

Most importantly, these organisations can control the data of these credit card users.

Although these organisations are still in the nature of alliances and are not for profit, Xia Yu, who is familiar with future trends, is well aware that this is because they are still in the pioneering period.

The major international credit card organisations are still competing for customers, and making money is not the goal. Gaining control of standard-setting and market leadership is currently the most important thing.

Once the situation stabilises, these international credit card organisations will transform into a for-profit company.

At that time, the standard-setter will hold all the power, and both banks and individual users will have to comply with the rules that are changed later, such as card opening fees, card replacement fees, handling fees, etc.

This kind of approach is nothing new to the capitalists, and it is a tried and tested method that will work everywhere, unless it encounters the iron fist of socialism.

Fortunately, the major international credit card organisations are still competing for market share, and the future global market share of Visa and MasterCard, which together account for 72% of the global credit card market, has not yet been decided.

China UnionPay has not even appeared yet.

Morgan Stanley is dissatisfied with the fact that Diners Club International is controlled by Citibank, and has started its own business. Last year, it also created Discover Card International, which is the sixth largest credit card company in the United States, and has only just started at this time.

And now the largest Visa International organisation in the US market is backed by the Bank of America, a California consortium.

The second largest MasterCard International organisation is backed by the Mellon consortium, the Texas consortium, the Boston consortium and other old consortia.

Needless to say, the third largest American Express International organisation was created by the American Express Company, which is deeply influenced by the Rockefeller consortium, and is fully supported by giants such as Chase Manhattan Bank.

...

In Xia Yu's long-term plan,

Southeast Asia is his base, and the mainland market is also his stronghold.

In his previous life, Southeast Asia was basically eaten up by Visa and MasterCard.

Even after the establishment of China UnionPay in the mainland, more than 90% of the more than 600 million credit cards issued are still Visa and MasterCard.

Although the accounts of these cards are managed by the issuing banks, the card issuing rules, business specifications, technical standards, transactions, and clearing all follow the unified regulations of Visa and MasterCard. Card data is centrally managed by them, and major transactions and clearing are completed through their networks.

Under this structure, each issuing bank has become a brand distributor for Visa and MasterCard, and regional or domestic bank card networks and organisations mainly carry out transaction switching for them, and have effectively become part of their global network.

In essence, this situation means that multinational companies such as Visa and MasterCard dominate the global personal payment system.

This kind of power, he also craves to have!

Therefore, when Wang Qi was fully building Kirin Capital,

Xia Yu had two floors of a building in Central taken out and registered and incorporated a credit card international organisation called 'Global'.

After incorporation, Xia Yu did not immediately go public.

Instead, he mobilised the resources of the consortium and recruited globally.

In addition, Xia Yu also used money to buy two credit card organisations in the western United States and the United Kingdom.

With the experience of these two credit card organisations and the support of the consortium's resources,

the Global Credit Card International Organisation took shape at rocket speed.

However, time moved on to the end of March.

While the Global Credit Card International Organisation was still being set up, Kirin Capital Company was the first to be fully ready.

Xia Yu was the titular chairman, Wang Qi was the president of Kylin Capital, and various financial elites gathered under his command. Funds were also ready.

Xia Yu gave the order.

The financial media took the lead, and Kylin Capital appeared in front of the world in a very high profile.

As the buzz spread across Asia,

beautiful brochures introducing Kylin Capital were sent out.

Those eligible to receive the brochures were all high-quality customers with bank deposits of over 1 million Hong Kong dollars.

Jiuding Bank, HSBC, Standard Chartered Bank and other banks provided Kylin Capital with information on these customers.

And the tycoons with assets of over 100 million Hong Kong dollars not only received the brochures, but also an exquisite invitation to the cocktail party!