Here’s a wrap up of what we learned from Taiwan’s first eCommerce Expo Asia.
In the world of digital retailing, all eyes are on Asia-Pacific, which holds the fastest and largest growth. Taiwan is not left out.
On October 6-9 last year, a team from Asian Banking and Finance was invited to attend Taiwan’s first ever exhibition of eCommerce Expo Asia. Hosted by trade promotion organization, Taiwan External Trade Development council (TAITRA), the exposition attracted over 50 e-businesses and occupying 120 booths. Exhibitors were from Singapore, Malaysia, mainland China, The US, France, Germany and Russia.
TAITRA president and CEO Peter W.J. Huang notes that the first exhibition of the eCommerce Expo Asia is a new milestone in Taiwan's industry as it is expected to bring considerable opportunities to the already vibrant Asia-Pacific area.
The eCommerce Expo Asia was held in conjunction with Taipei International Electronics Show (TAITRONICS) which features 530 exhibitors spread out over 1000 booths, and 40,000 professional buyers and members of the electronics and electrical industry.
Latest retail survey by Nielsen Global eCommerce found that Taiwan is the second largest online-grocery purchasing country in the world alongside India and following China. The survey show that a quarter of the polled 30,000 online respondents across 60 countries purchase groceries online. Taiwan surpassed one-third of those surveyed, at 36%.
Various domestic and foreign reports also point out that Taiwan is third fastest growing e-commerce market in AsiaPac. China has achieved growth of 34%, followed by South Korea with 22%.
Taiwan eCommerce market is expected to grow further in the coming years, thanks to the Payment Processing Institutions Act which was passed into law last May 2015. The law in effect have officially allowed non-financial sectors to partake in third party businesses paving way for faster licensing and more competition. The process for acquiring the license takes about two months. Currently, there are three local banks and three gaming companies who will be first to take a slice of the huge cake. Future enterprises are also eyeing future developments to dive into a sea of tremendous business opportunities.
Third party payments
At the sideline of the eCommerce Expo Asia, Asian Banking and Finance caught up with one of the emerging third party payment solution provider, Asia Express Mobile Corp, to talk about the rapid rise of ecommerce and how they take advantage of this phenomenon. The firm develops a mobile payment service called Go2Pay where buyers can make payment by linked with credit cards and sellers can easily receive payment without the purchase of EDC machine and POS machine.
Here’s the full script of the interview with Asia Express Mobile Corp’s Chief Operating Officer Will Hsu:
ABF: How do you take advantage of the rapid rise of ecommerce?
Will: We provide multi online payment solution for our client, and delivery service is given. Our payment gateway service is including credit card, debit card, account balance, reward point convenient stores (7-11 and FamilyMart) pay-on-pickup payment and across-border payment. Other delivery includes across-border SF Express and local post office delivery. The most importantly is we provide the best mobile payment system for our client. It allows buyer to use APP to make purchase by scanning a QR Code on any smartphone without the inconvenience of traditional payment methods. For this payment system, buyer doesn’t have to keep any credit card information or personal information on merchant platform. In addition, we also provide the mobile payment system customized service to conduct any business, such as online shop, parking service, shopping mall and other business. In the near future, we will go further to other region such as east south Asia, Africa and other countries. We are giving the best total solution services of online payment, mobile payment and across border payment for our client in rapid rise of ecommerce market.
ABF: What can you say about the Payment Processing Institutions Act that has just been passed into law? How do you benefit from it?
Will: On May 12, Taiwan's Financial Supervisory Commission (FSC) passed the Payment Processing Institutions Act. The law allows banks, online payment companies and electronic ticketing operators to conduct electronic payment business, and store, transfer value and across-border payment (face to face). The Act will bring enormous benefits for the development of Taiwan’s electronic commerce (e-commerce) market. On the other hand, the process of registration is too complicated for user. First, user has to go mobile phone OTP and Email verification and then registered ID number, credit card information and bank account number. The system is very good for consumer protection, but FSC doesn’t know the customer just want to make very simple and quick deal. Moreover, the effective performance in top-up service and transfer value service of digital wallet is not really well for current online payment companies. In my opinion, it is much suitable for online game company because they need user to top-up reward points. Therefore, our company suspends to apply Payment Processing Institutions Act, and we will focus on mobile payment system development this year.
ABF: Kindly briefly explain the mobile payment service that you've got to offer. What makes it unique and interesting? How does it address payment security?
The service that Go2Pay offer is to make transaction easier and safer between buyers and sellers. Through using Go2Pay app, buyers can make payment by linked with credit cards and sellers can easily receive payment without the purchase of EDC machine and POS machine. Both buyers and sellers are protected by Go2Pay as a third party payment, and approved by the ISO 27001 and PCI-DSS. Additionally, another unique service that Go2Pay provide is that we can help businesses to develops their own exclusive mobile payment app that is under business's name, and all developments will be efficiently done within 1 month.
ABF: What are the challenges you currently face and how do you intend to overcome them?
Go2Pay is facing the challenge that mobile payment is still unfamiliar in Taiwan. People in Taiwan still get used to pay in cash, thus it takes efforts to encourage users in Taiwan to make payment by using mobile devices. However, mobile payment is trend to change our future life, so we need to enhance and strengthen our marketing strategy. For example, use Go2Pay payment will be cheaper to pay in cash.
ABF Is there anything that you would like to add?
Go2Pay is not just simply a mobile payment app that provides users to make payment and receive payment. The most unique service that Go2Pay provides is that we develops and create the mobile payment app that is under your business name and provides the best available app service that fits our client in any business. We can help clients to save unnecessary costs and time. All development and planning will be efficiently done within one month. Currently, there is still no such company provides the similar service.
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