How China’s Quick Pay Transformed Online Payments and Boosted Success Rates

Quick Pay Overview

In early 2010 Alipay’s online payment success rate was around 60% because the process required multiple redirects, U‑keys, certificates and dynamic passwords. To improve user experience Alipay launched Quick Pay , a third‑party service that allows a one‑time card binding and subsequent payments without redirecting to bank pages.

Quick Pay Models

Three deployment models are used in China:

Three‑party model (e.g., Yibao Pay)

UnionPay model (CUPS cross‑bank transfer)

Bank model (directly offered by banks such as China Merchants Bank)

Three‑party model

Payment institutions provide the Quick Pay product to merchants. After a user binds a card, the success rate rises to >90% (≈95% for credit‑card payments).

UnionPay model

UnionPay’s online platform includes a no‑redirect Quick Pay option that routes transactions through the CUPS system.

Bank model

Banks issue Quick Pay directly. Same‑bank cards are processed internally; other‑bank cards are routed via UnionPay.

Architecture Overview

The typical flow consists of:

Merchant creates an order and obtains a payment identifier.

Checkout page (hosted or custom) renders and collects card‑binding or payment data.

Payment request is sent to the payment institution’s engine.

Engine forwards the request to a clearing channel (NetClear, UnionPay, etc.).

Clearing channel batches transactions, settles with the central bank and sends asynchronous callbacks.

Implementation Details

Merchant Integration

Two integration options are available:

Hosted checkout page : the payment institution provides a ready‑made page; the merchant redirects users to it.

Direct API : the merchant builds its own UI and calls the institution’s API, allowing full control over user experience.

The checkout page handles initial card binding, distinguishes credit and debit cards, and processes subsequent payments using the stored binding.

Payment Institution Processing

The institution receives the request, performs protocol signing (binding the user’s bank account to a merchant‑specific ID) and generates a protocol number used for later transactions. The request is then forwarded to the appropriate clearing channel.

Clearing and Settlement

Clearing institutions (NetClear, UnionPay) batch‑process transactions, settle net amounts with the People’s Bank of China, and push asynchronous settlement callbacks to the payment institution.

Detailed Flow for the Three‑Party Model

Typical steps:

User initiates payment; if no binding exists, the checkout page prompts for card details and performs a one‑time verification.

Card is bound to the merchant’s user ID; a protocol number is stored.

Subsequent payments reuse the stored binding, requiring only password entry.

Note: after direct connections were disabled, the three‑party provider routes transactions through NetClear or UnionPay.

UnionPay Quick Pay

UnionPay’s “no‑redirect” Quick Pay uses the CUPS (Cross‑Bank Card Transfer System) to transfer funds between issuing and acquiring banks. UnionPay also offers four related products on its open platform, including an “account direct‑pay” service that supports prepaid‑card accounts.

Bank‑Provided Quick Pay

Banks such as China Merchants Bank provide an H5 online Quick Pay. Payments with the same bank’s card stay within the bank’s internal system; other‑bank cards are transferred via UnionPay.

Full‑Stack Integration Example (E‑Pay)

For an e‑commerce platform integrating a three‑party provider:

Merchant calls the provider’s /order/create API to obtain a payment identifier.

Merchant redirects the user to the provider’s hosted checkout or renders a custom UI that calls /pay.

Provider’s engine signs the request, generates a protocol number, and forwards the transaction to NetClear/UnionPay.

Clearing channel settles and sends an asynchronous notification to the provider, which forwards it to the merchant.

Four‑Layer Channel Management

Payment channels can be organized as:

Channel – e.g., NetClear, UnionPay.

Product – Quick Pay, authentication pay, etc.

Interface – API endpoint or hosted page.

Protocol – the binding agreement (protocol number) between user, merchant and bank.

Protocol Signing and Payment

Signing flow:

User submits identity verification and card‑binding data.

Payment institution forwards a signing request to the clearing institution.

Clearing institution returns a protocol number.

Payment flow:

User initiates a payment using the stored protocol number.

Payment institution forwards the request to the clearing institution.

Clearing institution processes the payment and, on success, sends an asynchronous settlement request back.

Settlement Process

Clearing institutions aggregate transactions over a settlement window, calculate net positions, and settle with the People’s Bank of China. After settlement they push final callbacks to the payment institution.

Quick Pay dramatically increased payment success rates, reduced user friction, and laid the foundation for modern mobile, wallet and other innovative payment solutions in China.