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Tag: payments

  • Prepare for a mobile payment revolution among Chinese travelling shoppers

    Prepare for a mobile payment revolution among Chinese travelling shoppers

    Mobile payments will soon overtake cash and credit cards as the preferred payment choice for Chinese travellers shopping abroad, according to a new survey.

    Mobile payments specialist Cancan and financial research authority Kapronasia have published a global study, 2017 Mobile Payment Survey: Chinese Consumers Abroad, covering the impact of Asian mobile payment solutions at point-of-sale worldwide. Over 1,000  Chinese consumers and more than 60 C-level decision-makers from global merchant companies were surveyed.

    Among the key findings, the study found that Mainland Chinese consumers expect to spend more with mobile payments such as Alipay and WeChat Pay this year and next year than in 2016 when travelling abroad.

    Most Chinese travellers spent in the range of either US$393–US$786 or US$1,179–US$1,572 for retail purchases on their most recent overseas trip, the report found, while 5.7% spent more than US$6,288.

    Some 67% of respondents reported that they use mobile payments overseas. When consumers were asked about their primary method of payment while overseas, mobile payments represented about 41% of overseas consumption.

    Nearly half of the consumers surveyed made between 10-30% of their overseas shopping purchases with QR code-based mobile payment methods; one third of consumers paid over 50% of their purchases in China with mobile.

    chinese travellers mobile payments survey - Retail in Asia

    Fashion and cosmetics/skincare are among the categories consumers were most likely to purchase with mobile payment.

    The survey found that transaction convenience and the ability to track purchases in real time were the primary reasons for using mobile payments. Not needing to carry cash and credit cards was also appreciated. “You can easily spend days in China without opening your wallet, and consumers expect that too when they are shopping overseas,” the report said.

    The main reasons for not using mobile payments were merchants not offering the facility, as well as consumers’ ignorance that it was possible to use mobile payments when merchants do offer it.

    Alipay, WeChat Pay and Apple Pay are the most popular mobile payment methods. Over 75% of the surveyed merchants accepted Alipay. Over one third of merchants who do accept mobile payments indicated that it contributed to at least 3% or more of their global sales, with some experiencing a share as high as 15-25%.

    Although customer demand is primarily driving merchant adoption of mobile payment (over 80% of respondents agreed that they were reacting to customer demand), retailers also appreciate the speed of transaction and many desire to be seen to be “ahead of the game”.

    Cancan Managing Director Candice Koo: “Global merchants can profit from the mobile payments revolution storming out of the Far East, but they need to focus on the Chinese consumer”.

    “If the overseas market continues to mirror China’s mobile payment growth and development, this will likely change over time. Loyalty and points programmes in mainland China were slow to take off but are now informing an increasing number of merchant’s digital strategy, many of whom all have domestic WeChat official platforms.”

    Cancan and Kapronasia concluded that as well as there being continued growth in mobile spending, there will also be a change in what consumers buy using mobile payments.

    “Although they started out being used for smaller value purchases, mobile payments are increasingly being used for higher value and luxury items,” the report said. “The average transaction value on Alipay went from US$82 in 2015 to nearly US$100 in 2016, an increase of +22%.

    “The implications for overseas merchants are pretty clear: mobile payments have become a way of life for many Chinese and Asians and their habits are extending overseas.”

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  • Asia still top dog for payments innovation but Europe gaining ground

    Asia still top dog for payments innovation but Europe gaining ground

    Asia remains home to most payments innovation but Europe is making a charge, leapfrogging Africa, North America and Latin America, according to a survey of industry execs which also calls out distributed ledger technology as over-hyped.

    Based on a survey of 70 execs from 37 countries, the Global Payments Innovation Jury table sees Asia crowned champion again – a position it has held since the inaugural 2008 Jury. The continent scores 64% of the vote and while the “China effect” is significant, there have also been innovative developments in the likes of South Korea, Singapore, Japan and Malaysia.Notably, for the first time in nine years, Europe has leapfrogged Africa, North America and Latin America to take second place in the ranking.

    Says John Chaplin, chairman, Global Payments Innovation Jury: “While Europe has never been rated favourably for payments innovation in the past, the 2017 Jury sees real grounds for optimism.

    “There is now a much more progressive regulatory environment in Europe, world-leading innovation hotspots have developed in London and Berlin and we are starting to see that consumers are more willing to give new financial service providers a go.”

    In developed markets, such as Europe, a big majority see B2B investment as more likely to generate good returns than B2C, citing the consumer expectation that payment services should be free and the major marketing investment required to build a substantial user base.

    However, in markets such as Asia and Africa, the sheer size of the population still without access to formal financial services makes the Jury lean more towards B2C (56%) than B2B (44%).

    Addressing top industry trends, three quarters of the Jury believe that APIs are going to play an increasingly significant role in the payments market over the next three years.

    “Payments are often a source of friction and that means lost sales for retailers and frustrated customers. Using APIs it is much easier to integrate payments into apps so that transactions become almost automatic,” says Chaplin.

    Meanwhile, DLT is seen as the most over-hyped payments innovation. Says Chaplin: “While the Jury believe that distribution ledger technology can deliver real benefits for the overall financial services business they also consider that many of the claims made about its applicability to retail payments are over the top.”

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  • Cashing in on mobile payment

    Cashing in on mobile payment

    Eight years ago, Starbucks developed an app for mobile payments. Today, it is still held up as the gold standard in the US. In Asia’s rapidly developing market, where mobile payment is almost a decade ahead of the West, things are quite different.

    In China, you can mobile pay for everything, from cab fares to a utility bill. In 2015, WeChat registered more financial transactions in a day than PayPal did in 12 months. It is not just China that is adopting the trend – mobile payment is also making massive inroads in South-east Asia as shopping apps gain popularity.

    In Singapore, there are 30,000 retail points accepting contactless payment methods, such as Apple Pay, Android Pay and Samsung Pay. In Indonesia, the most populous country in the region with 250 million people, most of the big traditional retailers are unveiling e-commerce plans of their own.

    In a recent GfK study, The Connected Asian Consumer, consumers here and in Indonesia reported fairly high usage of shopping apps (37 per cent and 35 per cent, respectively).

    This growth is fuelled by affordable smartphones, a massive young and tech-savvy population as well as efforts by governments and telco operators to expand and improve high-speed wireless networks.

    It is only a matter of time before mobile payment goes mainstream.

    Unfortunately for traditional retailers, the age of e-commerce also produced a new consumer – we like to call them the “connected consumer” – and their behaviours are shaping the future of retail.

    In the GfK FutureBuy survey last year of 20,000 consumers in 20 markets, it was found that shoppers are becoming less loyal to any one retailer.

    Almost half (46 per cent) of all consumers (aged 14 to 65) stated that they are less loyal when shopping. This figure rises among the youngest consumers – to 53 per cent of Gen Y (aged 18 to 29) and 58 per cent of Gen Z (aged 14 to 17).

    For retailers who understand the connected consumer, there are opportunities to stay ahead of the competition – and mobile payment is a huge part of it.

    Despite becoming less loyal, many connected consumers expect an omni-channel shopping experience, where they interact with a brand. Connected consumers in Asia-Pacific seek the best of both worlds.

    For example, shoppers in China are the most likely to embrace omni-channel shopping – 71 per cent shop both online and in-store, while Australian shoppers are the most likely to shun online shopping (62 per cent shop exclusively in-store).

    In contrast, Indians lead the way in online shopping with 23 per cent shopping the category exclusively online.

    NEW REALITY

    Therefore, it is important for retailers to understand the new reality of the omni-channel consumer and know that the “whatever, whenever” culture demands that user experience is seamless across all devices.

    If retailers do not understand this, customers will simply delete their app and move on.

    At the same time, using analytics, retailers can receive customer data to offer more personalised services. In turn, this presents an opportunity to generate long-term relationships.

    But it is important to note that not all connected consumers are the same.

    For example, older consumers are not as comfortable with sharing personal information as younger consumers.

    Understanding the shopper’s purchase journey is easier these days, with research offering detailed information on the route shoppers take when making a purchase as well as ways in which online and offline touchpoints influence their decisions.

    We believe that brands that understand, respect and protect the consumers’ individual boundaries will earn their loyalty.

    As mobile payments continue to grow in Asia-Pacific, businesses in sectors such as financial services, cybersecurity and telecommunications stand to gain, and they can evolve to support the changing landscape.

    Loyalty is great, but to really retain customers in today’s omni-channel space, the shopping experience is equally important.

    To connected consumers, simplicity and convenience is paramount. Not only do they expect everything quickly, they also lose their patience faster.

    For large retailers, mobile payment offers the opportunity to segment and target consumers much more effectively, with highly-personalised offers.

    Discounts and offers can be integrated into mobile payment, replacing the need for physical coupons and entering information into a terminal.

    Connected consumers will wave goodbye to the traditional checkout queue and benefit from customised rewards.

    Mobile payment also offers a chance for small retailers to move into a new era of retailing. Freed from high transaction fees and with new ways to connect with consumers, they can embark on the kind of personalisation and targeting that is usually the privilege of larger players.

    With e-commerce here to stay, there is plenty of potential for retail businesses to leverage research intelligence to adequately design and develop strategies to target this group of consumers.

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  • Bango enables new payment option for Amazon customers in Japan

    Bango enables new payment option for Amazon customers in Japan

    Bango, the leading mobile payments company, announces that it has enabled a new payment method for Amazon customers in Japan. Amazon customers with a KDDI or NTT DOCOMO mobile phone account can now pay for physical goods from Amazon.co.jp, by charging the cost to their mobile phone bill.

    Adding carrier billing as a payment option increases choice for customers in Japan, making it easy to complete purchases. Selecting this payment method enables instant purchase completion, without needing to register card details online. Bango technology ensures reliability, security and customer success when paying with carrier billing.

    Charging online payments to a phone bill is a widely-adopted payment method in Japan, where mobile usage is deeply embedded into business and culture. The Japanese market has pioneered carrier billing, offering it as a simple and secure payment method, enabling more consumers to purchase goods and services, online and in retail stores. It is a highly effective way to engage new customers and is popular with younger consumers.

    The payment method opened-up to purchase goods on Amazon.co.jp at the start of June, greatly increasing the range of products that can be charged to the phone bill by KDDI and NTT DOCOMO customers, who cover around 75% of all mobile subscribers in Japan (Telecommunications Carriers Association, Japan, 2016).

    “Internet usage in Japan is mobile-first, with billions of dollars in online purchases charged to Japanese consumers’ phone bills,” said Ray Anderson, Bango CEO. “The Bango Platform ensures global retailers can offer these customers the trust and transparency they want from a payment method, and can deliver this at scale.”

    To use this payment option, a KDDI or NTT DOCOMO subscriber simply adds carrier billing as a payment option in their Amazon.co.jp account and then purchases can be made from any device, with the cost charged to their post-paid phone bill.

  • Swift unveils industry’s first ever cross-border payments tracker

    Swift unveils industry’s first ever cross-border payments tracker

    SWIFT announces today the availability of its new cross-border payments Tracker that enables international payments to be traced in real-time. The Tracker is the cornerstone of SWIFT gpi – the cooperative’s new payments innovation service – which is revolutionizing the industry by combining real-time payments tracking with the speed and certainty of same-day settlement for international payments.

    Available since January 2017, more than 20 global transaction banks are using or implementing the SWIFT gpi service, with another 50 in the implementation pipeline. Hundreds of thousands of gpi payments have already been sent across more than 85 country corridors.

    “Uptake of SWIFT’s gpi service has been encouraging and the addition of the Tracker capability can only help build momentum and accelerate adoption of the service in international payments,” says David Bannister, Principal Analyst, Ovum. “The most common complaint from corporates is the lack of visibility on their payments’ status. With the Tracker capability, SWIFT gpi tackles that issue and will be a useful tool to help corporate treasurers to execute their core responsibilities.”

    SWIFT gpi enables companies engaged in international trade to get paid for services, or delivery of goods, in a more timely fashion, enabling a faster supply chain process. The highly innovative gpi Tracker provides corporate treasurers with a real-time, end-to-end view of their payments combined with a confirmation notice when the money reaches the recipient’s account. It also enables a more accurate reconciliation of payments and invoices, optimizes liquidity with improved cash forecasts and reduces exposure to FX risks with same-day processing of funds in the beneficiary’s time zone. The Tracker is available via an open API, making it compatible with proprietary banking systems worldwide – helping to ensure maximum impact of gpi benefits at a greater adoption speed.

    SWIFT gpi has garnered considerable industry support across the globe. More than 110 leading transaction banks have committed to the service, representing over 75% of all SWIFT cross-border payments. Recent joiners to SWIFT gpi include: Agricultural Bank of China, Bank of Communications, Banque Centrale Populaire, BayernLB, China Citic Bank, China Minsheng Banking Corporation, Commercial Bank of Kuwait, Denizbank, Ebury, Industrial Bank, Guangfa Bank, Lek Securities, Ping An Bank, Piraeus Bank, Postal Savings Bank of China, Shanghai Pudong Development Bank, Turkiye Cumhuriyeti Ziraat Bankasi, Westpac Banking Corporation and Yapi Kredi, and Zhejiang Rural Credit Cooperative Union. Click here for a full list of participating banks.

    The service is also compatible with and integrated into domestic payment market infrastructures(MIs) across the globe, facilitating local clearing and settlement of gpi payments. Banks can already exchange gpi payments over the 56 SWIFT-connected MIs as well as other MIs that have established local market practices for their participants that use the gpi service. SWIFT will also continue to actively engage with additional MI communities for future gpi compatibility.

    “Today’s announcement is a significant step towards a game-changing experience for corporates the world over,” says Christian Sarafidis, Chief Marketing Officer, SWIFT. “By taking advantage of the right technology, at the right time, with the right players behind us, SWIFT has successfully helped correspondent banking reach a significant milestone in its evolution.”

    Wim Raymaekers, Programme Manager for SWIFT gpi adds, “This is only the beginning for SWIFT gpi. We will continue to explore new technologies, such as blockchain, and deliver more value added payment services further transforming the international payments landscape and, in doing so, accelerating global trade.”

     

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  • Biometrics to authenticate 2b m-payments this year

    Biometrics to authenticate 2b m-payments this year

    A new report by Juniper Research predicts the number of mobile payments authenticated by biometrics will climb to to nearly 2 billion this year, up from just over 600 million in 2016.

    The new research found that while Apple Pay had provided the catalyst for initial growth, other leading wallets including Android Pay and Samsung Pay were increasingly offering biometric solutions for authentication.

    Furthermore, the size of the opportunity has been boosted by the greater availability of fingerprint sensors. Juniper estimates around 60% of smartphone models are expected to ship with such sensors this year, with many Chinese vendors incorporating them into mid-range models.

    The research emphasized the increasing momentum behind alternative biometric solutions. It recognized Mastercard as an early leader in this space through its Identity Check Mobile capability, due to go live in the latter part of 2017. Informally known as “selfie pay”, this allows users to scan their fingerprints and/or take selfies to validate their identities and thereby make payments.

    Meanwhile, it expected to see strong adoption of the authentication app recently unveiled by India’s identification authority, through which merchants can verify a customer’s ID via either fingerprint or iris scan. Indeed, since the biometric data is linked to a bank account, the process acts as both authentication and transaction enabler.

    However, the research argued that the key challenge for service providers would be striking the right balance between end-user convenience and solution security.

    Research author Dr Windsor Holden pointed out that “typically, the more secure the solution, the more time-consuming the authentication process. It is essential to offer a range of verification options allowing clients to determine what level of security is required for a given authentication.”

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  • Kudo to Grab in battle for Indonesian market

    Kudo to Grab in battle for Indonesian market

    South-east Asia’s largest ride-hailing company Grab has bought Indonesian online payment start-up, Kudo, as the company kicks off a battle with rivals Uber and Go-Jek for market share with the first investment of a US$700 million (S$978 million) pledge in its largest market over the next four years.

    Grab did not disclose the value of the deal announced yesterday, but Reuters put the figure at over US$100 million.

    In a statement, Grab said the acquisition “solidifies (its) leadership in digital payments” with Kudo’s team and platform being integrated with its online mobile payment service, GrabPay.

    Founded in 2014, Kudo allows less tech-savvy consumers and those without bank accounts to shop online and pay for bills such as utilities and phone credits through its network of “agents”, who help to make those payments to merchants and suppliers on their behalf.

    It currently has 400,000 “agents” in 500 towns and cities across Indonesia.

    Combining Kudo’s presence in smaller cities and rural areas through these agents, GrabPay’s customer base will provide “millions of people across Indonesia with increased access to convenient cashless payments and new income opportunities, while also unlocking compelling new ways to boost online spending”, Grab’s president Ming Maa said.

    Grab said it plans to support and accelerate the expansion of Kudo’s network of agents while leveraging on its reach to bring in more riders, drivers and GrabPay users onto the Grab platform.

    Kudo also plans to explore opportunities to grow its financial services offering, including insurance and consumer loans. Its chief executive, Mr Albert Lucius, a former analyst at Goldman Sachs and product engineer at Apple, said in the same statement that the acquisition “creates immediate synergies with our existing business”.

    “We are excited to work together to bring the ease and convenience of cashless payments to more Indonesians than ever before,” he added.

    SPH Media Fund, the corporate venture capital arm of Singapore Press Holdings, was among the investors who sold their stake in Kudo. SPH Media Fund first invested in the Indonesia-based e-commerce platform in April 2015 and participated in another funding round in December 2015.

    Singapore-based Grab offers car and motorcycle ride-hailing services in South-east Asian countries such as Singapore, Indonesia, the Philippines, Malaysia, Thailand and Vietnam. Go-Jek is a market leader in motorbike taxi services in Indonesia. Uber remains a small player, introducing motorcycle-taxi services only in April last year.

    Transport analysts in Jakarta told The Straits Times the acquisition illustrates how ride-hailing providers were extending their businesses beyond transportation.

    The rivalry has been particularly intense between Go-Jek and Grab.

    Since its launch in 2015, Go-Jek has been setting itself apart from its two other rivals by diversifying into various services, allowing its customers to buy food and groceries, hire beauticians and masseusses, and book cleaners.

    Mr Yoga Adiwinarto, a director at the Institute of Transportation and Development Policy, said: “Grab doesn’t want to lose out. But since building an e-payment system takes time, the easiest way is to buy a company that has already established itself in this area.”

    “After this, I’m sure there will be huge innovations and Grab will expand into service sectors such as mini-markets and the selling of train tickets and flights too,” he added.

    Dr Ellen Tangkudung, lecturer at the University of Indonesia, noted that customers would only stand to gain from the competition.

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  • CIMB-Alipay mobile wallet provides Chinese tourists a more seamless payment experience

    CIMB-Alipay mobile wallet provides Chinese tourists a more seamless payment experience

    CIMB Bank Bhd (CIMB Bank) and Ant Financial Services Group (Ant Financial), the parent company of Alipay, the world’s largest online and mobile payment platform, yesterday announced a collaboration to enable the Alipay mobile wallet in Malaysia as an alternative cashless payment for Chinese tourists.

    CIMB Bank will act as the settlement and merchant acquirer bank to facilitate Alipay payments in Malaysia, to enable Chinese visitors to pay for their transactions in renminbi without concern about exchange rates, through a simple barcode-scanning method that they are used to in China.

    Douglas Feagin, Senior vice president of Ant Financial said, “We are pleased to work with a leading financial institution in Malaysia and Asean such as CIMB Bank to bring the convenience of the Alipay service to our users wherever and whenever they need them. We see CIMB Bank, with its extensive merchant network, as the perfect collaboration partner to provide our payment solutions to Chinese travellers in this region.”

    Tengku Dato’ Sri Zafrul Aziz, group chief executive, CIMB Group said, “The entry of Alipay marks a notable milestone in the growth of mobile wallet payment services in Malaysia. We are excited to work with Alipay to provide Chinese tourists a convenient and secure payment experience while in Malaysia and we target to go live with our merchants by May 2017, having received Bank Negara approval just recently.

    “CIMB’s leading edge expertise in transaction banking is not only supporting Malaysia’s drive for a safe and secure cashless society, but also providing our customers with a seamless banking experience within Asean.”

    Earlier on, an exchange of Memorandum of Understanding (MOU) took place between CIMB Bank and Ant Financial to officiate the collaboration. Ant Financial was represented by Douglas Feagin while CIMB Group was represented by Tengku Dato’ Sri Zafrul Aziz.

    Witnessing the MOU exchange were Dato’ Sri Najib Razak, Prime Minister of Malaysia; Jack Ma, executive chairman, Alibaba Group; Dato’ Sri Nazir Razak, chairman, CIMB Group and Lucy Peng, chairman, Ant Financial.

    Thus far, CIMB is collaborating with Genting Malaysia Berhad, Digi Telecommunications Sdn Bhd, YTL Corporation Berhad and Maxincome Resources Sdn Bhd (which operates the FamilyMart convenience store chain) to be the pioneer merchants to accept Alipay mobile wallet payments in Malaysia.

    Alipay merchants in Malaysia will have the opportunity to deepen their wallet share from Chinese travellers, by providing an alternative payment channel to current cash or dual-currency credit card facilities.

    Genting Malaysia Berhad’s leading integrated resort, Resorts World Genting will be the first merchant working with CIMB to incorporate Alipay as an alternative payment channel for its customers. The award winning resort will have the world’s first Twentieth Century Fox Theme Park, the brand new SkyAvenue mall’s food and beverage and retail outlets, and also hotels under its RM10.4 billion Genting Integrated Tourism Plan.

    Digi Telecommunications Sdn Bhd will enable tourists from China to enjoy the convenience of paying for Digi mobile and data plans through the Alipay mobile wallet, enabling them to stay connected while they are in Malaysia. The Alipay mobile wallet provides customers payment convenience in line with Digi’s strategy to bring a seamless digital experience to its customers.

    YTL Corporation Berhad is looking into welcoming acceptance of Alipay mobile wallet with CIMB, especially for YTL Hotels & Properties, the hospitality arm of YTL Corporation Berhad, YTL Hotels & Properties owns and manages a prestigious collection of award-winning resorts, hotels, boutique experiences and spa villages; as well as Hutong @ Lot 10, and Starhill Gallery in Kuala Lumpur, where many Chinese tourists frequent whenever they visit Malaysia.

    FamilyMart will enable Alipay acceptance in three of its current outlets, located in Wisma Lim Foo Yong, Mid Valley, and KLIA 2, in its continuous efforts to bring more convenience to its shoppers. FamilyMart, which originates from Japan, is the first convenience store chain in Malaysia to bring mobile payment and Alipay to Chinese tourists. The chain targets to open 300 stores in five years.

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  • Invapay, World First team on cross-border payments

    Invapay, World First team on cross-border payments

    Payment technology firm Invapay has teamed up with World First to allow clients making payments on its platform will be able to take advantage of purportedly favorable exchange rates and faster payments.

    Invapay has integrated World First’s API into its payments platform, so customers have real-time visibility of exchange rates. Allied to the Cashflow and Treasury optimization features of its existing platform, it is expected to give greater control and flexibility to company finance and treasury departments.

    “We identified a significant problem facing companies today and responded by developing a unique and exciting cutting edge solution which will bring huge and real benefits,: said Neil Radley, Director at Invapay.

    “We are delighted to have worked with the World First team, who share our belief in minimising transaction costs, to develop this unique solution which will benefit the 84% of companies who are dissatisfied with their current processes and foreign exchange costs.”

    Seth Harvey, Global Head of Partnerships at World First, commented: “We are delighted to be partnering with Invapay to offer a new solution that allows businesses to save money when making international payments. Invapay has demonstrated innovative thinking within the business to business payments space and our combined approach will offer companies a seamless service that removes the hassle of payments when trading internationally”.

    A day following the Invapay-World First partnership, the CEOs of Invapay and Optal announced an agreement to sell Invapay to Optal,  a provider of Mastercard payment products.

    “The acquisition of Invapay enables Optal to deliver a one-stop-shop for corporate B2B payables needs. Combined with our existing highly successful virtual payment solutions including virtual account numbers or VANs, Invapay completes our product offering, enabling us to offer genuine ‘pay anyone, anywhere’ capabilities,” said Optal CEO Rob Bishop.

  • Rakuten expands in-store payment system

    Rakuten expands in-store payment system

    Japanese e-commerce giant Rakuten is expanding its Rakuten Pay in-store payment system to support 14 major digital money brands and Android Pay.

    Rakuten Pay provides affiliated stores with a single payments service that supports a variety of payment methods, including credit cards, electronic money, and a smartphone app.

    It now accepts payments made through Rakuten Edy, the digital payment service provided by Rakuten Group, nine electronic money brands affiliated to transport organizations, including Suica, PASMO, and nanaco which can be used at Seven & i Holdings retailers across Japan; WAON,  the electronic money brand provided by the AEON Group (planned service launch in 2018), as well as QUICPay+TM  and iD*1.

    As the system supports Rakuten Edy, it is also compatible with Android Pay.

    In the future, Rakuten said it plans to make the service compatible with NFV payment services, such as Visa payWave, Mastercard Contactless, and J/Speedy, making it possible for affiliated stores to process payments made by foreign tourists visiting Japan as well.

    Moreover, the Rakuten Card & NFC Reader Elan will become available for purchase from March 6, 2017. This device is equipped with functions that enable payment through both credit cards and electronic money.

    For participating stores that already carry the older device and stores that wish to accept only major electronic money brands, the Rakuten NFC Reader Piu, an electronic money reader that is equipped with NFC functions, is scheduled to go on sale in the summer of 2017.

    Rakuten launched the Rakuten Pay in-store payment system, originally a settlement service for credit cards, in December 2012 to the Rakuten Ecosystem to brick-and-mortar stores. In October 2016, Rakuten began providing a smartphone app service through Rakuten Pay which utilizes the Rakuten Member ID.

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  • China’s m-payment market growing 142% annually

    China’s m-payment market growing 142% annually

    The total value of mobile payment transactions in China is expected to grow at an average annual growth rate of 142% over the next three years to reach 13,776.5 trillion yuan ($2,011.17 trillion) by 2020, according to Research and Markets.

    According to a new report by the research firm, mobile banking accounted for 83.1% of the value of mobile payment transactions in 2015, but this is expected to decline slightly to 80.4% in 2020.

    Among the banks, China Construction Bank had a 23.1% market share, followed by Industrial and Commercial Bank of China (20.0%) and Agricultural Bank of China (13.9%).

    Faced with fresh challenges from payment service providers, the banks are expected to strengthen competitiveness by introducing differentiated services and products, such as jointly-issued cards or support for large payments.

    Third-party mobile payment transaction values have been estimated at 21.96 trillion in 2015, with the market rapidly growing. Alibaba’s Alipay and Tencent’s Tenpay have captured 90% of the market.

    Market competition further intensified in 2016 as handset vendors and traditional enterprises stepped up their presence in the payment market.

    Research and Markets expects 2D QR code payment technology to continue to lead the market. More secure and advanced technologies such as near field communication (NFC), hosted card emulation (HCE), token authorization and biometric authentication will meanwhile mature more gradually.

  • Cash payment declines by 2% in 6 year

    Cash payment declines by 2% in 6 year

    Cash as a mode of payment has declined in the country by 2 per cent in the past six years, from 14.02 per cent in 2010 to the current 12 per cent.

    As per the State Bank of Việt Nam’s report released this week, the country currently has around 67.4 million bank accounts compared to 16.8 million accounts in 2010.

    Modern infrastructure and technology to facilitate non-cash payments, especially online payments, have developed significantly. The number of bank cards has increased by 11.36 per cent against the end of 2015, to around 111 million now.

    There are around 254,000 points of sales (POS) and 17,380 automatic teller machines (ATMs), up 13.77 per cent and 5.39 per cent, respectively, compared to end of 2015.

    The central bank has issued many policies relating to modern infrastructure and technology to boost non-cash payments, to protect customer interests, and ensure quality of service.

    It has instructed commercial banks to quickly carry out a plan to convert all magnetic cards into chip cards to prevent fraud. Under the plan, all ATM cards will become EMV-standard chip cards by 2020, to reduce risks in e-commerce for both buyers and sellers.

    To protect the interests of customers, in October 2016, the central bank issued Circular 30/2016/TT-NHNN, which requires credit card service providers to compensate card owners for loss not caused by the owners, starting November 28, 2016.

    The Government also recently approved a policy encouraging cashless transactions in Việt Nam in order to reduce the number of cash-based deals, improve electronic payment methods and control tax evasion.

    Under the plan, by 2020, cash transactions in the country will be account for less than 10 per cent of total market transactions. As per the plan, all supermarkets, shopping malls and distributors will accept credit cards; 70 per cent of water, electronics and telecommunication service providers will accept cash-free payments from households and individuals; and 50 per cent of the total urban households will use electronic payment for daily transactions.

    The policy also proposes the development of new payment methods for rural and remote areas in order to encourage financial inclusion and increase overall access to services. At least 70 per cent of Vietnamese citizens over the age of 15 will have bank accounts by the end of 2020. Social welfare and pensions will be paid through electronic payment methods.

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  • CB Bank in Myanmar rolls out cardless cash withdrawal and P2P payment services

    CB Bank in Myanmar rolls out cardless cash withdrawal and P2P payment services

    Recently, Diebold Nixdorf helped CB Bank migrate all its ATMs to more secure EMV chip card technology and obtain EMV certification with both VISA and MasterCard. EMV is a technical standard for smart payment cards introduced by Europay, Mastercard and VISA.

    Diebold Nixdorf is also assisting CB Bank with the implementation of cardless cash withdrawals at ATMs. The solution allows bank customers to use their mobile devices to generate a one-time PIN to activate a withdrawal at an ATM either for themselves or for a third party without requiring a bankcard. The technology provides an innovative person-to-person payment service to consumers especially in developing markets, and underscores Diebold Nixdorf’s commitment to drive connected commerce and help bridge the digital and physical worlds.

    “Diebold Nixdorf was awarded the contract due to its superior product quality, flexible software and ability to offer field service for both hardware and software within the country,” said U Kyaw Lynn, CEO and Executive Vice Chairman, at CB Bank. “With the help of their advanced technology and services provided, we aim to become one of Myanmar’s top banks offering secure, innovative and convenient cash services across our branch, online and mobile channels.”

    Diebold Nixdorf’s Myanmar partner, Kaytumadi iSolutions, will localize product features and begin installing the new systems at the start of next year. The rollout is scheduled for completion by the end of 2017.

    Diebold Nixdorf will service the entire 1,000-strong fleet of advanced cash systems in CB Bank’s network of 180 branches.

    “Together with our local partner, we are enabling CB Bank to extend the reach of its self-service offerings and win a greater share of Myanmar’s growing market for cash services,” said Neil Emerson, Senior Vice President & Managing Director, Asia Pacific, at Diebold Nixdorf.

    Demand for cash is strong in Myanmar. Cash is the main mode of payment in the southeastern Asia country of more than 53 million people. Competition to provide cash services is also fierce. CB Bank already operates one of the largest ATM networks in the country and aims to expand its market position even further by doubling the number of terminals in its self-service network.

    CB Bank benefits from its IT partner’s wealth of local experience in Myanmar. Diebold Nixdorf, which has been delivering solutions to CB Bank since 2012, is a major supplier of cash-handling technology and services to all major banks in the country and across the Asia-Pacific region.

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  • Innisfree collaborates with POSPi and Bank of China to launch mobile payment in China

    Innisfree collaborates with POSPi and Bank of China to launch mobile payment in China

    Mintel reports that in 2017, brands will be looking for innovative ways to use data to proactively assist consumers in all aspects of the sales journey to optimise customer service.

    The trio hopes that by adopting the innovative concept and technology, it will enable them to provide a personalised, more engaged and more convenient service to maximise the customer experience.

    Digital growth

    Innisfree, which promotes green sustainability and eco-friendliness, has ploughed resources into presenting its brand as a progressive, authentic and digitally-savvy leading destination.

    To date, it is the natural beauty name’s entry into the Chinese beauty arena that has proved the most lucrative step for the company. Since its expansion into the Chinese market in 2011, it has gone on to open 300 outlets and achieved an annual sales revenue of RMB 5.7 bn (€776 mn).

    “Innisfree, as one of the fastest growing brands under AmorePacific, has inherited the spirit of innovation and achieved a geometric growth over the past 4 years, especially in the Chinese market,” said Cai Jianren, General Manager of Innisfree.

    Celebrating its 17th birthday this year, Innisfree has an e-commerce site to help build brand awareness throughout APAC, secure a global following and increase sales by connecting online marketing efforts with an offline presence.

    With stores located throughout the APAC region, including South Korea, Hong Kong, China, Japan, Taiwan, India, Singapore, Malaysia, and Vietnam, Innisfree has positioned itself as a strong adopter of the online-to-offline (o2o) commerce trend.

    On-the-go service

    “The application of mobile POS allows us to offer a personalised service to our customers at retail stores. Each of our salespersons is now equipped with a mobile POS which has successfully eliminated queuing and empowered them to respond to customer’s various requests anywhere, anytime on the floor,” Jianren added.

    Based in Shanghai, POSPi, researches and develops mobile retail technology solutions to help brands move into a smart and intuitive retail environment.

    Feng Yanrong, Senior Manager of Bank of China, highlighted the impact this collaboration is expected to have on the business landscape: “This project marks a new step of Bank of China in the field of mobile POS, which will help multinational retailers enter the smart retail era.”

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  • Easy Pass users can now top up with MasterCard via “easyBills”

    Easy Pass users can now top up with MasterCard via “easyBills”

    2C2P, Expressway Authority of Thailand (EXAT) and MasterCard have partnered to launch a new top-up channel for Electronic Toll Collection System for Easy Pass users in Thailand. Easy Pass users can now top up their cards easily with their MasterCard via easyBills’ mobile application or its website (www.easyBills.in.th), without having to pre-register their cards with the respective issuing banks. They will enjoy benefits including points accumulation upon card usage, extended due dates for payments made through the credit card, convenient storage of their favorite billers for repeat usage and checking their historical transactions, as well as the ability to set bill alerts on their calendar.  A thousand gift cards worth 500 baht each will be given away to the top 1,000 MasterCard cardholders who accumulate the highest Easy Pass top-up value via easyBills from now till 28 February 2017.

    Mr. Piyachart Ratanaprasartporn, Chief Executive Officer of 2C2P (Thailand) Co., Ltd., said:  “easyBills is an innovative payment service catered to digital users who are familiar with the online platform. The collaboration marks the first time that Easy Pass users can easily and conveniently top up their cards without cash, using their MasterCard without pre-registering with their banks, simply by downloading and using the easyBills mobile application on either iOS or Android, or by visiting easyBills’ website.”

    “easyBills helps consumers pay their bills easily, bringing convenience to everyone. It is equipped with special features that enable users to store their favorite billers for future usage, store their credit card details securely for future payments with 2C2P’s PCIDSS Level 1 certification and set biller alerts on their calendar to remind them of the payment due. Users will receive their payment confirmation via their emails,” Mr. Piyachart added. 

    Mr. Antonio Corro, Country Manager for Thailand & Myanmar, MasterCard, said, “MasterCard is very pleased to join our partners to increase convenience to our customers. They can now top up their Easy Pass card through the easyBills mobile application and website, with their MasterCard that is issued by all the banks in Thailand. They can be assured that all the online transactions are secure, while enjoying the privileges from using MasterCard. We believe this service will pave the way for Thailand to become a cashless society soon.”

    Mr.Narong Gieddech, Governor of Expressway Authority of Thailand (EXAT) said: “Since 2010 we have provided our service for the Electronic Toll Collection (ETC) system;  there are 1.3 million Easy Pass card users. We are excited to join hands with MasterCard and 2C2P who developed easyBills. easyBills’ application and website will be the 12th top-up channel for Easy Pass. This service will be bolstered by Thailand’s National e-Payment system, which the government is set to launch to transform Thailand into a cashless society.”

    easyBills “Pay Bill Easily…Get More Easier”, is developed by 2C2P in collaboration with MasterCard. Through this service, cardholders can pay utility bills, such as electricity, water supply, telephone, mobile phone top-up and e-wallet, as well as for insurance premium, online products, games, books and several other bills all in one app, anywhere anytime. Most importantly, security meets the international standard of 3D Secure.

    There will be a giveaway of a thousand Tesco Lotus gift cards worth 500 baht each. The prizes will be awarded to the top 1,000 MasterCard cardholders who accumulate the highest top-up value on their Easy Pass via easyBills from now until February 28, 2017.

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