Going cashless – Mobile Payments in Asia

mobilepayment

Throughout Asia Pacific where smartphone penetration is the highest in the world, consistent progress by local governments toward cashless societies is benefiting the mobile payments market. Going cashless is seen as a catalyst for the mobile payments market both in markets where use of cards is transitioning gradually into use mobile payments and in markets where consumers are leapfrogging to mobile payments from cash. Getting to 100% cashless will see mobile payments realize its potential as a key enabler of Cashless Societies.

Regulatory push, standardization, the availability of a ubiquitous payments infrastructure and comprehensive solutions as well as local consumer behaviour play a role in determining how fast the transition to 100% cashless is going to be. The top down regulatory push towards cashless societies across Asia Pacific will see the $71.92 billion mobile payments market (excluding China and India) grow exponentially to reach $271.47 billion by 2021. The number of active customers too will double to 130.8 million users.

Although benefiting from regulatory push factor, the initial slow take up is mainly due to the drawbacks of today’s mobile phone as a form factor. This includes lack of user interface and payment flow standardization, the need for additional security features such as tokenization and biometrics authentication, effective resolution of data privacy issues and above all and the fact that it doesn’t replicate the physical wallet. The presence of local proprietary e-wallets built to differing security standards alongside global and open 3rd party e-wallets further add confusion to the market.

Despite current challenges, the market is progressing. Standardization efforts are already underway in some countries and contactless payments facility is growing. However, contactless payments facility is still far from ubiquitous i.e. it has to be available on trolleys, at toilets, for donations to churches, at tourist foreign exchanges and virtually everywhere else. There is also a lack of comprehensive solutions to cater for segments holding on to the use of cash e.g. the poor, the old, people with disabilities, people living in rural areas and short term visitors/tourists, that will complete a transaction that involves payment method, loyalty/rewards, receipts and in some instances identification.    

It is clear that there is still a lot of work ahead, especially in replicating physical wallets and offering a truly seamless user experience. Ultimately, the focus now should shift to mobile payments in order to build a 100% cashless future across Asia Pacific.

Join Quah Mei Lee to gain her insights on the latest developments alongside key issues plaguing Asia Pacific. Together with an expert panel, she will then debate these issues & questions.

1. What would be the ideal mobile payment solution?

  • Current focus has been to leave it to market forces to determine which solutions will prevail
  • Is the confusion created by multiple solutions in the market holding back the demand for mobile payments?
  • Why aren’t solutions providers offering seamless comprehensive solutions?
  • Will transforming the mobile phone into a physical wallet increase take up of mobile payments?  

2.What direction should standardization of mobile payments take?

  • Current focus is on payment flow and acceptance of all payment methods at merchant site
  • Should it include guidelines on minimum security and handling of data privacy issues?
  • Should it mandate seamless comprehensive solutions that will replace the physical wallet while leaving room for competition in innovation within this broad scope?

3. What would be the final combination of efforts from industry (regulator, solution providers, merchants) that will make mobile payments go mainstream in Asia Pacific?

  • Current focus by governments has been on pushing options that increase cashless transactions. In addition to this,
    • Australia is looking into removal of higher value currency notes i.e. $50 and $100, but while this will help push mobile payments that is capped below $100, there are indications from India that people may revert back to use of cash and behavior switches are temporal.
    • Singapore is funding cashless payment acceptance at small merchants (hawker centres). While this will take time to complete, take up is still slow elsewhere despite wide acceptance via NETS
    • Malaysian tolls are going 100% cashless through use of a single payment method.
  • What steps are necessary to increase take up and encourage use of mobile payment facilities?
  • Should the regulator mandate use of mobile payments?
  • Should the regulator mandate or encourage via incentives true ubiquitous acceptance in order to get to 100% cashless?

 

If you are interested to join this panel discussion, please get in touch with us! info@transactives.com

 

  • GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit #Thailand plans for >500k EDC terminals for #Payment - some super EDC even support #alipay #wechat #Kbank https://t.co/6uVMPi3g9X 1 day ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit an amazing development to watch! @Payconiq https://t.co/q1L8Z5wJdg 1 day ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit How to select the best #PSP in a fragmented #payment methods landscape? https://t.co/9MCS2oZ9FD via @ThePaypers 4 days ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit they are already here! #alipayfollowschinesetourists https://t.co/aibKq9HHk4 5 days ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit MAS collaborates with United Nations to drive #financialinclusion in #ASEAN https://t.co/VA1owh8BGc 6 days ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit RT @omise_go: Payments Startup Omise Joins Wave of Digital-Coin Fundraising https://t.co/J0AL5CCuA8 #ethereum #crowdfunding 6 days ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit A regular 7-11 in #bangkok now offers #alipay #wechatpay #truemoney visa ... #paymentchoices https://t.co/3ZuaOc5UMD 1 week ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit "No consumer interest means no merchant interest" #ApplePay #Nothappening #LowAdoption https://t.co/CQWHZuIjuI #Payment 2 weeks ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit RT @stevevance: Transit payment cards in Asia have their own character. Here's Tokyo/Japan and Taiwan. Both are owned by companies separate… 2 weeks ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit Fintech in Southeast Asia dropped and just < 0.5% of global mkt volume -- a drop in the big ocean https://t.co/AJnsPaWQLE #fintech #SEA 2 weeks ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit Pay with Bitcoins at 260,000 shops in Japan! - Japanese retailers quickly embracing #bitcoin #payments Nikkei https://t.co/s7TMFesTrX #japan 2 weeks ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit Adoption is tougher! Furthermore SG is a pretty safe city, no one feels dangerous carrying #cash at all?… https://t.co/mzAM8ES0zx 3 weeks ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit #China & Digital Finance – How 1.4 billion people pay, shop, and save https://t.co/vuDpDbUTZ2 #payment #digital #fintech #banks #innovation 3 weeks ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit Check out our latest emailing! https://t.co/XmzkmRPmKv 3 weeks ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit Jus Grab and Go? The way to accelerate things probably!... Grab to Acquire #Indonesian Online #Payment Startup Kudo https://t.co/Vm8ED4pB6l 3 weeks ago
    GlobalPaymentSummit GlobalPaymentSummit @GlobalPaySummit RT @jonrazuan: Alipay expansion: How it can benefit Southeast Asia and its economy - The Payment Gateway https://t.co/VV4LXSbBvb 3 weeks ago
  • Also interesting
    Going cashless - Mobile Payments in Asia
    Written on 20 April '17 by
    READ MORE
    China & Digital Finance - How 1.4 billion people pay, shop, and save
    Written on 5 April '17 by
    READ MORE
    Check out our new video trailer!
    Written on 4 April '17 by
    READ MORE
  • Speakers 2016