02.2022 Office Talk
Mobile payment platform: the new force of e-generation jinliu service
Far Eastern International Bank / Chen Junkai
In 1974, the first local credit card appeared in Taiwan, changing the consumption mode of many people. In the following decades, with the continuous innovation of technology, the gradual maturity of fintech and the popularization of smart phones, the advent of "mobile payment" was accelerated. Now, under the catalysis of the epidemic, mobile payment has gradually replaced cash as a new payment option.
Evolution of transaction types
With the development of Internet and communication technology, people's financial trading habits are constantly changing. 5 ~ 10 years ago, post offices, banks and convenience stores provided paper payment notes to greatly improve the convenience of payment. Now the transaction type is moving from physical currency to paperless transaction. As long as you move your finger to scan QR code, you can pay immediately, which is more convenient and time-saving than before.
The government and financial institutions jointly promote the financial flow service platform
The government promotion action payment platform "beep pay" provides a more convenient payment platform for Chinese people. You can scan the bar code or enter the bill number to pay public utility fees and relevant fees of government agencies, so as to achieve the purpose of paperless, energy conservation and carbon reduction. In order to improve the utilization rate, it even offered a preferential activity of "giving 50 yuan reward to depositors when joining members".
Another "national payment network" is a payment platform launched by the association of banks of the Republic of China (BAROC) integrating major financial institutions, agricultural (fishery) associations and credit cooperatives, covering more than 370 bank libraries.
The above two are the financial flow service platform established by the government to expand various collection channels on the basis of entrusted collection operations between existing financial institutions and public institutions. In order to attract customers to use their own cash flow services, banks not only launch payment or credit card preferential activities from time to time, but also provide cross withdrawal and cross transfer fee free financial services to guide customers to reduce the use of cash transactions, so as to promote the popularization of digital transactions.
Covid-19 affects the transaction patterns of consumers
Although more than 60% of Taiwan's consumption is still paid in cash, and the proportion of digital payment methods such as credit card is less than half, according to the "visa consumer payment attitude report 3.0" published by visa in 2021, according to the statistics of 2000 people in Taiwan, Hong Kong and Macao, the consumption proportion of credit card and signing financial card has soared from 80% in 2020 to 99%, Ten percent of consumers do not even use cash at all, and the proportion of cash in overall expenditure has decreased from 35% to 27% in the past two years, indicating that the epidemic has indeed accelerated the penetration of contactless finance into consumers' lives. "Card payment", "e-wallet" and "Digital Banking" have become three major daily consumption tools, which will gradually replace cash payment in the future.
Moreover, the report also pointed out that in the consumption materials with an amount of more than 200 yuan, one of every two consumers chose to pay in non cash, and the payment scene has gradually shifted to convenience stores, supermarkets and vendors with small consumption. Therefore, payment preference will become the main battlefield for banks to seize customers' cash flow in the future. For example, when consumers place orders in stores or online shopping malls, they will ask whether the stores have preferential activities, or which credit card or payment platform to use before checkout can get more feedback.
Due to the epidemic, the proportion of consumers in Taiwan using digital banking services is increasing. 74% of consumers have installed mobile banks. Also, because digital banks are very convenient and can handle most of their financial needs in real time, the most commonly used businesses are account inquiry (78%), transfer (70%) and bill payment (63%), Fifty percent of consumers use mobile banking for transactions at least once a week. It can be seen that digital banking services have gradually been deeply rooted in people's financial life, and the whole society is developing towards a cashless trading environment.
Change of payment preference pattern and seize the consumer cash flow market
Driven by the anniversary of the department store, the double 11 Shopping Festival and the Christmas celebration in December, the fourth quarter often becomes the traditional peak consumption season every year. Department store retail and major online shopping platforms have offered card swiping preferential schemes, and banks and payment platforms have also cooperated with sales channels to seize business opportunities. In addition to increasing the proportion of card swiping feedback, It also adopts the marketing strategy of double bonus points or other additional discounts to attract consumers to spend with their own credit cards.
According to the survey on the payment methods of online shopping consumers conducted by the financial products online comparison platform "money101", 47.9% of consumers prefer to use cash feedback credit cards, 33.2% prefer to use mobile payment, and 32.6% prefer point feedback credit cards. The top two main factors affecting consumers' choice of payment methods are: whether the feedback is high enough Whether the feedback items comply with consumption habits.
At present, the average proportion of credit card payment feedback of banks in the market is 1%. If they are matched with different payment platforms, they can also get extra code. How to seize the business opportunities of cash flow is a big test for banks and payment platforms. In addition to improving the feedback of credit card payment, integrating all cash flow services is also one of the ways to attract customers. However, for consumers, although the credit card payment can be offset in the future bill, if they do not continue to spend in the future, the credit card payment will not be returned in other forms, which is not the most substantive discount. Therefore, if the card payment can be returned to the customer's deposit in the form of cash, it is bound to give consumers a more substantive feeling.
The progress of Internet communication technology enables readers to "know the world's affairs", while the development of e-commerce channels enables consumers to "buy things in the world". How to use payment platforms and consumer feedback means to firmly grasp customers' cash flow in the consumption boom and diversified promotion strategies will be one of the focuses of generation e cash flow services, It is also a place for strategists in the financial sector to compete in the future.
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Evolution of transaction types
With the development of Internet and communication technology, people's financial trading habits are constantly changing. 5 ~ 10 years ago, post offices, banks and convenience stores provided paper payment notes to greatly improve the convenience of payment. Now the transaction type is moving from physical currency to paperless transaction. As long as you move your finger to scan QR code, you can pay immediately, which is more convenient and time-saving than before.
The government and financial institutions jointly promote the financial flow service platform
The government promotion action payment platform "beep pay" provides a more convenient payment platform for Chinese people. You can scan the bar code or enter the bill number to pay public utility fees and relevant fees of government agencies, so as to achieve the purpose of paperless, energy conservation and carbon reduction. In order to improve the utilization rate, it even offered a preferential activity of "giving 50 yuan reward to depositors when joining members".
Another "national payment network" is a payment platform launched by the association of banks of the Republic of China (BAROC) integrating major financial institutions, agricultural (fishery) associations and credit cooperatives, covering more than 370 bank libraries.
The above two are the financial flow service platform established by the government to expand various collection channels on the basis of entrusted collection operations between existing financial institutions and public institutions. In order to attract customers to use their own cash flow services, banks not only launch payment or credit card preferential activities from time to time, but also provide cross withdrawal and cross transfer fee free financial services to guide customers to reduce the use of cash transactions, so as to promote the popularization of digital transactions.
Covid-19 affects the transaction patterns of consumers
Although more than 60% of Taiwan's consumption is still paid in cash, and the proportion of digital payment methods such as credit card is less than half, according to the "visa consumer payment attitude report 3.0" published by visa in 2021, according to the statistics of 2000 people in Taiwan, Hong Kong and Macao, the consumption proportion of credit card and signing financial card has soared from 80% in 2020 to 99%, Ten percent of consumers do not even use cash at all, and the proportion of cash in overall expenditure has decreased from 35% to 27% in the past two years, indicating that the epidemic has indeed accelerated the penetration of contactless finance into consumers' lives. "Card payment", "e-wallet" and "Digital Banking" have become three major daily consumption tools, which will gradually replace cash payment in the future.
Moreover, the report also pointed out that in the consumption materials with an amount of more than 200 yuan, one of every two consumers chose to pay in non cash, and the payment scene has gradually shifted to convenience stores, supermarkets and vendors with small consumption. Therefore, payment preference will become the main battlefield for banks to seize customers' cash flow in the future. For example, when consumers place orders in stores or online shopping malls, they will ask whether the stores have preferential activities, or which credit card or payment platform to use before checkout can get more feedback.
Due to the epidemic, the proportion of consumers in Taiwan using digital banking services is increasing. 74% of consumers have installed mobile banks. Also, because digital banks are very convenient and can handle most of their financial needs in real time, the most commonly used businesses are account inquiry (78%), transfer (70%) and bill payment (63%), Fifty percent of consumers use mobile banking for transactions at least once a week. It can be seen that digital banking services have gradually been deeply rooted in people's financial life, and the whole society is developing towards a cashless trading environment.
Change of payment preference pattern and seize the consumer cash flow market
Driven by the anniversary of the department store, the double 11 Shopping Festival and the Christmas celebration in December, the fourth quarter often becomes the traditional peak consumption season every year. Department store retail and major online shopping platforms have offered card swiping preferential schemes, and banks and payment platforms have also cooperated with sales channels to seize business opportunities. In addition to increasing the proportion of card swiping feedback, It also adopts the marketing strategy of double bonus points or other additional discounts to attract consumers to spend with their own credit cards.
According to the survey on the payment methods of online shopping consumers conducted by the financial products online comparison platform "money101", 47.9% of consumers prefer to use cash feedback credit cards, 33.2% prefer to use mobile payment, and 32.6% prefer point feedback credit cards. The top two main factors affecting consumers' choice of payment methods are: whether the feedback is high enough Whether the feedback items comply with consumption habits.
At present, the average proportion of credit card payment feedback of banks in the market is 1%. If they are matched with different payment platforms, they can also get extra code. How to seize the business opportunities of cash flow is a big test for banks and payment platforms. In addition to improving the feedback of credit card payment, integrating all cash flow services is also one of the ways to attract customers. However, for consumers, although the credit card payment can be offset in the future bill, if they do not continue to spend in the future, the credit card payment will not be returned in other forms, which is not the most substantive discount. Therefore, if the card payment can be returned to the customer's deposit in the form of cash, it is bound to give consumers a more substantive feeling.
The progress of Internet communication technology enables readers to "know the world's affairs", while the development of e-commerce channels enables consumers to "buy things in the world". How to use payment platforms and consumer feedback means to firmly grasp customers' cash flow in the consumption boom and diversified promotion strategies will be one of the focuses of generation e cash flow services, It is also a place for strategists in the financial sector to compete in the future.
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