This month, the Taiwan Cooperative Bank (TCB) and Visa have implemented what both call Taiwan's first standardized and EMV-compliant QR code payment.
Part of Financial Information Service Co.'s "Standardized QR Code Solutions," the new EMV solution will be among the first large-scale deployments of standardized QR Code payments in Taiwan, initially covering more than 8,000 TCB acceptance points. In the future consumers can link their TCB Visa debit or credit cards with the Taiwan Mobile Payment mobile app to experience the security and convenience of mobile payment.
Visa announced plans to introduce QR code payment in Taiwan in July last year. It was meant as a response to the introduction of Apple Pay, Samsung Pay and Google Pay in March, May and June of the same year.
At the time, Visa said it had 35 million credit cards issued by 20 banks in Taiwan – presenting both a threat and opportunity for the card company with the introduction of alternative payment platforms for consumer retailers hooked to their smartphones.
In January 2018, mobile payment in Taiwan stood at just 13% – low for a highly developed economy renowned for leading innovation. In contrast, mobile payment in China accounted for 61.2% of the global user base in 2018. With the encouragement of Taiwan Premier, Lai Ching-te, the government is aiming to have 90% of mobile phone users using mobile payment by 2025.
"This roll-out will boost the bank's already extensive acceptance footprint due to standardized QR Code's cost-effectiveness as a payment method. We hope to help further advance Taiwan's mobile payment for the benefits of all." TCB chairman Chung-Dar Lei.
Marco Ma, General Manager of Visa Taiwan, added that "the EMV QR Code Specifications are intended to be globally interoperable, and with the right mobile application local consumers, as well as overseas travelers will be able to use the same QR Code to make payments everywhere the specifications have been adopted, opening up more revenue sources beyond Taiwan."
TCB's EMV QR code solution offers extensive payment applications including payments for credit card bills, utilities, insurance premiums, tuition fees, air tickets, taxes, food and e-commerce purchases.
First published in Fintech Innovation