TAIPEI (TVBS News) — Taipei Metro (台北捷運公司) announced plans on Tuesday (Aug. 27) to replace all gates by the end of 2025, incorporating diverse payment methods such as QR codes and credit cards. This initiative aims to provide passengers with more payment options and streamline the commuting experience.
Taipei City Councilor Chan Wei-yuan (詹為元) highlighted that this change could significantly impact EasyCard Corporation (悠遊卡公司), whose primary revenue sources might be affected. Chan urged EasyCard to prepare for these changes proactively.
He noted that EasyCard's top three revenue streams over the past three years include service commission income from credit card co-branded clearing fees and co-branded revenue, sales revenue from EasyCard sales, and licensing income, accounting for 54%, 37%, and 5% of their income this year, respectively.
EasyCard Corporation responded by stating that the extent of the impact will depend on discount policies. The company plans to offer various promotions and adapt to multiple payment forms to mitigate potential revenue losses. They cited international examples, noting that in Singapore, where no commuter discounts are offered, credit card usage is nearly 40%, whereas in Hong Kong, with various discount schemes, the usage is only 3%.
Taipei Metro has already begun retrofitting gate electronic modules and adding multi-payment modules. This upgrade will enable passengers to use credit cards and QR codes for fare payment, offering a broader range of payment choices. Chan emphasized that EasyCard must adapt, as the new gates will allow direct credit card access, posing a significant challenge to EasyCard's revenue model.
EasyCard Corporation has been actively developing mobile payment solutions, such as telecom EasyCards, Easy Wallet for transportation, QR code-based Easy Wallet, and Samsung Pay EasyCard, to maintain its market share in transportation. The company also offers various discounts and differentiated services, such as promotional tourist cards and senior and disability card point services.
