TAIPEI (TVBS News) — Taiwan's contactless payment industry is witnessing a surge in growth, driven by the adoption of technologies like the TWQR integrated payment system. This advancement is welcomed by a broad spectrum of businesses, from major retailers to small convenience stores and beverage shops.
As reported by the Financial Supervisory Commission, Taiwan had 10 dedicated and 20 hybrid electronic payment institutions as of September. The diverse nature of these institutions meant that businesses collaborating with multiple providers had to manage several QR codes at checkout points, complicating consumer and business transactions.
The TWQR system has been implemented to streamline this process, allowing for payments through a single QR code. This simplification is expected to significantly enhance the checkout experience.
Liu Mei-ling, general manager of an electronic payment provider, highlights the benefits for affiliated stores. “In terms of affiliated stores, if there is an integrated payment system, they only need to sign a contract with one entity. It's similar to credit cards, where they only need to sign with one acquiring bank. This benefits the stores as it can save significant costs and procedures associated with multiple integrations," she said.
Liu also underscored the value for consumers. "It's similar to credit cards in the past. If they see the logo of the issuing bank, they don't have to worry about which issuing bank they belong to. The application of an integrated platform is more widespread. I believe this provides significant value for consumers," she added.
With 37 financial institutions, including major banks and electronic payment providers, the TWQR system is poised to offer a unified payment experience across various channels using a single account.
However, this integration has raised concerns among some merchants and service providers. Nieh Chien-chung from the Department & Graduate Institute of Banking & Finance, Tamkang University, shared his thoughts on the potential impact on businesses.
"Most businesses may prioritize their interests. Integrated payment like this may result in the potential loss of different service providers, where they are losing some control they originally had," Nieh said. But he also believes it's not a zero-sum game, especially for robust businesses. "I believe that if a business is strong and sizable enough, even if its customers use an integrated platform, it should still be able to retain their customer base and follow their own path," he added.
As Taiwan moves toward a more integrated electronic payment future, the TWQR system signifies a major advancement in mobile transactions. It marks the beginning of a new era in transactional practices.
