Apr 21, 2021
Aenco Xfiles: Contactless Choices
Aenco focuses on real-life challenges of digital financing for both fintech projects and the investing community
Last time, we discussed the gradual adaptation of contactless payment in the global arena. This time, at Aneco X-files, we unveil the notion of contactless and its applicability in Asia. We adopt a regional focus on Taiwan and refer to several industry examples for our discussion this week.
𝓕𝓸𝓻𝔀𝓪𝓻𝓭
The increasing demand for contactless payment in Taiwan has led to fierce competition among mobile-wallet providers as customers are likely to settle transactions with their smartphones.
𝓒𝓸𝓷𝓽𝓮𝓷𝓽
Taiwan’s mobile payment market is dominated by three digital services, Line Pay, Apple Pay, and JKoPay, holding more than 60% of the market share.
According to the semi-governmental Market Intelligence & Consulting Institute (MIC) report in January 2019, Line Pay takes up 22% of the market, followed by Apply Pay and JKoPay, each with about 20% share. But in the past year, JKoPay has doubled its market share, becoming Taiwan’s leading mobile-wallet provider; while Line Pay and Apple Pay loses 3% and gains 2% respectively.
JKoPay’s success lies with its focus on promoting cashless payments among small merchants. The company provides free tokens to users, which subsidizes up to 20% of the transaction. Also, JKoPay offers discounts to customers if they pay via their service. This, in turn, persuades and attracts merchants to operate with JKoPay as it helps them to drive businesses.
Contrastingly, Line Pay’s massive user base of 19 million and its attractive collaboration with banks to issue credit cards constitute to its success. 1.83 million of the co-branded CTBC credit card was issued in 2016, allowing cardholders to earn Line Pay credit points per NT$100 spent.
The government also cooperates with mobile payment providers, especially Line Pay, to offer points redemption or cashback for cashless transactions in specified areas with abundant small merchants like Ningxia Night Market in Taipei.
Although Apple Pay only constitutes 20% of the market, with Apple being the top smartphone seller in Taiwan, notably 25% of penetration rate, Apple Pay becomes handy for online transactions.
𝓒𝓵𝓸𝓼𝓲𝓷𝓰 𝓣𝓱𝓸𝓾𝓰𝓱𝓽𝓼
We are working tirelessly to ensure the future launch of discount benefits in our AENXv2.0 platform — and trading with AENS is also a kind of contactless transaction! Aenco envisages it to be a growing global trend where crypto trading and crypto payment is gradually immersing to the mainstream payment methods. Stay tuned for more updates about Aenco and its future development; we will be back later with a new topic!
𝓕𝓲𝓷𝓭 𝓐𝓮𝓷𝓬𝓸:
✔𝘛𝘦𝘭𝘦𝘨𝘳𝘢𝘮: 𝘵.𝘮𝘦/𝘈𝘦𝘯𝘤𝘰
✔𝘔𝘦𝘥𝘪𝘶𝘮: 𝘮𝘦𝘥𝘪𝘶𝘮.𝘤𝘰𝘮/@𝘢𝘦𝘯𝘤𝘰𝘪𝘯/
✔ 𝘐𝘯𝘴𝘵𝘢𝘨𝘳𝘢𝘮: 𝘪𝘯𝘴𝘵𝘢𝘨𝘳𝘢𝘮.𝘤𝘰𝘮/𝘢𝘦𝘯𝘤𝘰𝘪𝘯/
✔𝘓𝘪𝘯𝘬𝘦𝘥𝘐𝘯: 𝘭𝘪𝘯𝘬𝘦𝘥𝘪𝘯.𝘤𝘰𝘮/𝘤𝘰𝘮𝘱𝘢𝘯𝘺/𝘈𝘦𝘯𝘤𝘰
✔𝘛𝘸𝘪𝘵𝘵𝘦𝘳: 𝘵𝘸𝘪𝘵𝘵𝘦𝘳.𝘤𝘰𝘮/𝘈𝘦𝘯𝘤𝘰𝘪𝘯
✔𝘍𝘢𝘤𝘦𝘣𝘰𝘰𝘬: 𝘧𝘢𝘤𝘦𝘣𝘰𝘰𝘬.𝘤𝘰𝘮/𝘈𝘦𝘯𝘤𝘰𝘪𝘯
✔𝘋𝘪𝘴𝘤𝘰𝘳𝘥: 𝘥𝘪𝘴𝘤𝘰𝘳𝘥.𝘨𝘨/𝘕𝘟𝘱𝘍𝘤𝘒𝘘
✔𝘠𝘰𝘶𝘛𝘶𝘣𝘦: 𝘠𝘰𝘶𝘛𝘶𝘣𝘦.𝘈𝘦𝘯𝘤𝘰𝘪𝘯.𝘤𝘰𝘮
✔𝘝𝘪𝘣𝘦𝘳: 𝘈𝘦𝘯𝘤𝘰 𝘝𝘪𝘦𝘵𝘯𝘢𝘮
✔𝘡𝘢𝘭𝘰: 𝘻𝘢𝘭𝘰.𝘮𝘦/𝘨/𝘷𝘷𝘨𝘭𝘮𝘫886
