Professor Christina Soh and Senior Research Scientist Dolly Leow prepared this case based on published sources. This case is intended for class discussion and learning, and not intended as source research material, or as illustration of effective or ineffective management.

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The Asian Business Case Centre, Nanyang Business School, Nanyang Technological University, Nanyang Avenue, Singapore 639798. Phone: +65-6790-4864/6552, E-mail: [email protected]

A TALE OF TWO ECOSYSTEMS: E-PAYMENT IN CHINA AND SINGAPORE

Christina Soh and Dolly Leow

The electronic payment (e-payment) industry has experienced rapid growth in recent years, especially in Asia, driven in part by technological developments such as the widespread adoption of smartphones and the e-commerce boom. Like other digital innovations, the continued adoption and diffusion of e-payment depends on an ecosystem of users – consumers as well as merchants – and transaction facilitators known as payment service providers (PSPs). This case describes the e-payment ecosystems of two Asian countries – China and Singapore – that started their e-payment journeys at different times and in different cultural contexts. The two countries’ e-payment ecosystems differ in their development trajectories as well as their resulting configuration, raising important issues for discussion regarding ecosystem design and evolution.

INTRODUCTION Electronic payment (or e-payment) is a way of paying for goods and services without the use of cash or cheques. Transactions are typically fulfilled via debit, credit or stored value cards, mobile phones or an online wallet (e-wallet), and processed through an electronic medium or system.1 According to a recent report by Statista,2 total global transaction value in the digital payment segment amounted to US$3.4 trillion in 2018. This is expected to grow at an annual rate of 13.9% to US$5.7 trillion by 2022. In 2018, 2.8 billion users completed e-payment transactions such as online payments, mobile payments processed via smart devices at point-of-sale, and digital consumer commerce transactions (e.g. through using credit cards with online payment platforms). The market's largest segment, e-commerce, saw a total transaction value of US$2.8 trillion in 2018.

1 Wrobel-Konior, S. (2016, August 29). What is an e-payment system?. Business 2 Community. Retrieved from

https://www.business2community.com/ecommerce/e-payment-system-01641721 2 Statista. (2018). Worldwide digital payments in 2018. Retrieved from https://www.statista.com/outlook/296/100/digital

payments/worldwide

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In recent years, digital mobile payment solutions, such as e-wallets, have emerged; this trend is most prominent in Asia. A World Payments Report by Capgemini and BNP Paribas highlighted that from 2015 to 2016, non-cash transactions in developed Asia-Pacific nations grew by 8.8% while emerging Asia-Pacific markets experienced 28.6% growth in the same segment. Digital payments in Asia are also forecasted to grow at an annual rate of 16.4% to reach over US$2.5 trillion per year in 2022 – almost half of the estimated worldwide total of US$ 5.4 trillion. 3 China, in particular, experienced the highest growth in cashless transactions between 2010 and 2015.4 This growth was fuelled by high penetration of smartphones and apps, which has also supported the e-commerce boom. In addition, technology has lowered the barrier to entry for non-bank entities to run standalone payments businesses. Nonetheless, e-payment, like many other digital innovations, requires the creation and sustaining of an ecosystem comprising shared technology platforms and diverse actors such as payment processors and complementary service providers, suppliers, customers, and regulators. This case describes the different paths taken by two Asian countries, China and Singapore, in the development of their e-payment ecosystems. While China only adopted this technology in the 21st century, Singapore started its journey in the mid-1980s. In China, there are two major private sector e-payment operators anchoring the ecosystem: Alipay and WeChat Pay. In Singapore, NETS is the designated national PSP, and the government plays an active – even pivotal – role in driving e-payment. CHINA’S E-PAYMENT ECOSYSTEM China has experienced tremendous growth in cashless payments over the last five years,5 due primarily to mobile payments. According to figures reported by Statista, 6 the total transaction value in the digital payments segment in China amounted to US$1.2 trillion in 2018. This is expected to grow at an annual rate of 20.6%, reaching a total amount of US$2.6 trillion by 2022. A 2017 survey conducted on the Chinese population found that 40% of respondents regularly carried less than RMB100 (US$14) in cash. The survey also reported a higher adoption rate for mobile payment in eastern and northern China.7 There are two major private sector e-payment operators anchoring the ecosystem: Alipay and WeChat Pay. Alipay is the online payments platform of Alibaba Group Holding affiliate Ant Financial Services, while WeChat Pay is operated by Tencent Holdings. Together, they account for 94% of China’s mobile payments market. Alipay has 54% and WeChat Pay has 40% of market share.8 Both payment service providers (PSPs) have popularised point-of-sale (POS) e-payment modes where users simply tap, swipe, check in with a smartphone using the built-in near-field communications feature, or scan a machine-readable optical label known as a quick response (QR) code.9

3 Capgemini & BNP Paribas. (2018). World payments report 2018. Retrieved from https://www.worldpaymentsreport.com/#non-cash-

payments-content 4 Vinayak, H. V., Istace, F., & Kamal, R. (2012, September). Insights from McKinsey’s Asia-Pacific payments map. Retrieved from

https://www.mckinsey.com/~/media/mckinsey/dotcom/client_service/financial%20services/latest%20thinking/payments/ mop15_insights_from_asia-pacific_payments_map.ashx

5 The world’s top 10 cashless countries in 2017. (2017, October 19). Finance Monthly. Retrieved from https://www.finance-monthly.com/2017/10/the-worlds-top-10-cashless-countries-in-2017/

6 Statista. (2018). Worldwide digital payments in 2018. Retrieved from https://www.statista.com/outlook/296/100/digital payments/worldwide

7 IPSOS Research. (2017, August). 2017 mobile payment usage in China report. Retrieved from https://www.ipsos.com/sites/default/files/ct/publication/documents/2017-08/Mobile_payments_in_China-2017.pdf

8 Aldama, Z. (2017, September 9). Going cash free: why China is light years ahead in the online payment revolution. South China Morning Post. Retrieved from https://www.scmp.com/magazines/post-magazine/long-reads/article/2110118/going-cash-free-why-china-light-years-ahead

9 ibid.

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Alipay Alipay was established in 2004 as the payments processing department of Taobao, the online B2C marketplace operated by Alibaba Group. One common pain point in e-commerce in China was the lack of trust between sellers and buyers.10 People were reluctant to buy or sell online, and transactions on Taobao often failed because both sides suspected each other of being fraudsters. Taobao introduced Alipay as a third party to temporarily place a hold on money paid by the buyer. The money would only be released to the seller once the buyer confirmed that the products ordered were received in good condition. There was tremendous transaction growth on Taobao after the introduction of Alipay, and over time, Alipay began facilitating transactions on all the other e-commerce platforms held by the Alibaba group as well (Tmall, AliExpress, Alibaba.com, and 1688.com). Alipay can be used to pay utility bills, book taxis, conduct peer to peer (P2P) transfers, book hotels, and facilitate many other everyday transactions (see Exhibit 1A). Today, Alipay has built a 600,000-strong network of merchants11 and a user base of 520 million.12 Popular services provided by Alipay’s merchant partners include ride-hailing via Didi, local delivery services via Koubei and movie ticket booking via

Taopiaopiao.13 In 2013, Alipay launched a financial product platform called Yu'ebao (余额宝), a money market fund for shoppers’ idle deposits in their Alipay accounts.14 Many shoppers found Yu’ebao attractive and began to use it as a virtual wallet as its offered interest rate was higher than that of bank deposits. WeChat Pay WeChat Pay, an outgrowth of the WeChat social media mobile app, was launched in 2014. Chinese conglomerate Tencent launched WeChat in 2011. Since its creation, the Chinese government has subsidised the app’s development and aided its adoption in China by raising barriers to entry for potential competitors: censoring Facebook Messenger in 2009, blocking the South Korean-owned LINE messaging app in 2015, and banning WhatsApp in 2017.15 By the end of 2016, WeChat had 890 million active users, more than half of whom logged into WeChat for more than 90 minutes a day.16 Businesses and consumers were very familiar with the app, and this level of comfort and familiarity made them more willing to adopt the payment infrastructure. By the first quarter of 2018, more than one billion users had registered accounts on WeChat,17 and WeChat Pay boasted a 300,000-strong network of merchants.18 Upon entering their bank account information, users were able to navigate their daily lives almost exclusively through their mobile phones: WeChat Pay enabled them to pay bills, transfer money, purchase groceries, book hotels, etc. via electronic means (see Exhibit 1B). An impact report by WeChat revealed

10 Liu, C. C. (2017, March 2). Everything you need to know about Alipay and WeChat Pay. Retrieved from

https://medium.com/@charliecliu/everything-you-need-to-know-about-Alipay-and-wechat-pay-2e5e6686d6dc 11 Aveni, T. & Roest, J. (2017, December) China’s Alipay and WeChat Pay: Reaching rural users. Retrieved from

https://www.cgap.org/sites/default/files/researches/documents/Brief-Chinas-Alipay-and-WeChat-Pay-Dec-2017.pdf 12 AliPay. (N.D.). Alipay. Retrieved from https://intl.alipay.com/ 13 Liu, C. C. (2017, March 2). Everything you need to know about Alipay and WeChat Pay. Retrieved from

https://medium.com/@charliecliu/everything-you-need-to-know-about-Alipay-and-wechat-pay-2e5e6686d6dc 14 Carsten, P. (2014, March 26). Alibaba launches entertainment investment fund. Reuters. Retrieved from

https://www.reuters.com/article/us-alibaba-internetfinance/alibaba-launches-entertainment-investment-fund-idUSBREA2P0NE20140326

15 Liao, S. (2018, February 1). How WeChat came to rule China. The Verge. Retrieved from https://www.theverge.com/2018/2/1/16721230/wechat-china-app-mini-programs-messaging-electronic-id-system

16 Koh, J. (2017, July 24). Cashless in China: An experiment with mobile payments for a day. Channel News Asia. Retrieved from https://www.channelnewsasia.com/news/cashless-in-china-an-experiment-with-mobile-payments-for-a-day-9058584

17 Hollander, R. (2018, March 6). WeChat has hit 1 billion monthly active users. Business Insider. Retrieved from https://www.businessinsider.com/wechat-has-hit-1-billion-monthly-active-users-2018-3/?IR=T

18 Aveni, T. & Roest, J. (2017, December) China’s Alipay and WeChat Pay: Reaching rural users. Retrieved from https://www.cgap.org/sites/default/files/researches/documents/Brief-Chinas-Alipay-and-WeChat-Pay-Dec-2017.pdf

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that WeChat Pay’s usage almost doubled between 2016 and 2017, especially in daily transactions such as supermarket transactions, food payments and online shopping. In 2017, the e-payment app was used by 97% of WeChat users under 18 years old.19 Role of the Chinese Government China’s state-dominated economy is often viewed as inefficient and unable to provide the necessary physical infrastructure to respond quickly to market needs.20 This perceived weakness has allowed private enterprises such as Tencent and Alibaba to take the lead in catering to consumers and to succeed rapidly with bold initiatives. Apps and user platforms are developed independently by the companies; as such, they set their own security policies as well as user protection guidelines. The Chinese government, however, has played an important role in pushing e-payment adoption by supporting digitisation as an investor, developer, and consumer.21 In March 2015, Premier Li Keqiang unveiled the Internet Plus strategy, which aimed to harness the potential of the Internet and emerging technologies for China’s economy.22 This strategy promoted the adoption of technology in the public sector, with the aim of linking government services to the platforms of the two e-payment leaders. In addition, state-run media and government agencies maintain official WeChat accounts, with which they communicate directly with users.23 Since 2017, China has gradually introduced more regulatory policies, 24 tightening access to payment licensing and raising requirements on renewal. In addition, the People's Bank of China formulated and issued the System of Centralized Custody of Clients' Reserves of Payment Institutions and made more efforts to crack down on unlicensed payment and money laundering, laying a foundation for more regulated development of mobile payment in China.

Ecosystem Competition and Challenges Domestic competition between Alipay and WeChat Pay is intense. Each fiercely protects its own turf. For example, when Tencent invested in Dianping, China’s most popular restaurant review app, only WeChat Pay was featured as a payment option.25 Similarly, on Taobao, a B2C e-commerce platform operated by the Alibaba Group, payment for purchases cannot be made via WeChat Pay; only Alipay is accepted.26

19 Graziani, T. (2018, May 14). WeChat Impact Report 2018 shows impressive social impact. Walk the Chat. Retrieved from

https://walkthechat.com/wechat-impact-report-2018-shows-impressive-social-impact/ 20 China’s internet giants go global. (2017, April 20). The Economist. Retrieved from

https://www.economist.com/news/business/21721203-tencent-leading-acquisition-spree-alibaba-close-second-chinas-internet-giants-go

21 Rosa-Bohrer, S. (2018, July 2). Why China leads the world in mobile payments. Retrieved from https://mobilepaymentconference.com/why-china-leads-the-world-in-mobile-payments/

22 Zahn, N. (2018, May 11). Insight: How Chinese payment apps are taking over public services. GovInsider. Retrieved from https://govinsider.asia/inclusive-gov/insight-chinese-payment-apps-taking-public-services/

23 Liao, S. (2018, February 1). How WeChat came to rule China. The Verge. Retrieved from https://www.theverge.com/2018/2/1/16721230/wechat-china-app-mini-programs-messaging-electronic-id-system

24 Research and Markets. (2018, February 2). Global and China mobile payment industry report 2018: Transactions approximated RMB294.97 trillion in China in 2017, an upsurge of 41.4% from RMB208.6 trillion in 2016. Retrieved from https://www.prnewswire.com/news-releases/global-and-china-mobile-payment-industry-report-2018-transactions-approximated-rmb29497-trillion-in-china-in-2017-an-upsurge-of-414-from-rmb2086-trillion-in-2016-300592556.html

25 Xiao, E. (2017, April 20). How WeChat Pay became Alipay’s largest rival. Tech in Asia. Retrieved from https://www.techinasia.com/wechat-pay-vs-Alipay

26 Gentlemen in China. (2017, October 25). Online payment in China: WeChat Pay vs Alipay. Marketing to China. Retrieved from https://www.marketingtochina.com/online-payment-china-wechat-pay-vs-Alipay/

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Both often offer users discount coupons and prizes to encourage the use of their platforms.27 For example, between 1 and 8 August 2017, Alipay offered its users cash rebates of up to RMB 4,888, as well as the chance to own a share in 18.888 kg of gold, to use of its mobile app to make e-payments.28 During the first three days of this promotion, residents in Hangzhou and Wuhan, the first two Chinese cities identified by Alibaba as model cities for cashless living, could take buses free of charge up to 12 times by using Alipay. During the same period, rival WeChat Pay also offered its own promotions – users could accumulate cash rebates for e-payments made between 1 and 7 August 2017, and redeem them during a one-off spending day on 8 August. The Shenzhen-based technology company also offers discount coupons for shopping and dining at designated merchants. Both PSPs constantly come up with new service offerings and strategies to capture market share. In 2014, WeChat Pay capitalised on China’s tradition of gifting cash-filled red packets (known as “hongbao”) with the launch of its virtual red packet, which lets users send up to US$29 to WeChat friends. A total of 16 million digital hongbaos were exchanged through WeChat Pay on the eve of Chinese New Year alone in 2014.29 A year later, this number jumped to one billion. By 2018, as many as 768 million people used WeChat to send out digital hongbaos, accounting for 55% of the entire 1.4 billion population in China.30 Rival Alibaba’s owner, Jack Ma, called it a “Pearl Harbour Attack” on Alipay, which subsequently launched its own red packet equivalent in retaliation.31 These two e-payment providers also strive to ensure that they are at the forefront of technological innovation. Alipay uses facial recognition technology to beef up user identification and security. WeChat has initiated integration with China’s electronic ID system – the company plans to issue virtual ID cards, which individuals can use in lieu of their physical state-issued ID cards. This is possible since WeChat requires users to register with their real names in accordance with government policy.32 Against the backdrop of tighter control by the Chinese government, both PSPs have strategically partnered with banks to accelerate growth. Alibaba has partnered with China Construction Bank (CCB) while Tencent has partnered with Bank of China (BOC).33 The former allows Ant Financial to offer the bank’s wealth-management products through its Alipay and Ant Fortune platforms.34 As for the latter, BOC, one of the country's big four state-owned lenders, and Tencent have essentially come together to establish a joint financial technology laboratory which will work on cloud computing, big data, blockchain and artificial intelligence to create innovations such as financial services offered through the cloud.35

27 Aldama, Z. (2017, September 9). Going cash free: why China is light years ahead in the online payment revolution. South China

Morning Post. Retrieved from https://www.scmp.com/magazines/post-magazine/long-reads/article/2110118/going-cash-free-why-china-light-years-ahead

28 Tao, L. (2017, August 1). Alibaba and Tencent kick off cashless payment promotions. South China Morning Post. Retrieved from https://www.scmp.com/business/companies/article/2104939/alibaba-and-tencent-kick-cashless-payment-promotions

29 Xiao, E. (2017, April 20). How WeChat Pay became Alipay’s largest rival. Tech in Asia. Retrieved from https://www.techinasia.com/wechat-pay-vs-Alipay

30 Lee, C. (2018, February 22). WeChat red packet senders total 768m over Chinese New Year. ZDNet. Retrieved from https://www.zdnet.com/article/wechat-red-packet-senders-total-768m-over-chinese-new-year/

31 Xiao, E. (2017, April 20). How WeChat Pay became Alipay’s largest rival. Tech in Asia. Retrieved from https://www.techinasia.com/wechat-pay-vs-Alipay

32 Liao, S. (2018, February 1). How WeChat came to rule China. The Verge. Retrieved from https://www.theverge.com/2018/2/1/16721230/wechat-china-app-mini-programs-messaging-electronic-id-system

33 Research and Markets. (2018, February 2). Global and China mobile payment industry report 2018: Transactions approximated RMB294.97 trillion in China in 2017, an upsurge of 41.4% from RMB208.6 trillion in 2016. Retrieved from https://www.prnewswire.com/news-releases/global-and-china-mobile-payment-industry-report-2018-transactions-approximated-rmb29497-trillion-in-china-in-2017-an-upsurge-of-414-from-rmb2086-trillion-in-2016-300592556.html

34 China Construction Bank announces strategic pact with Alibaba. (2017, March 29). Asia Times. Retrieved from http://www.atimes.com/article/china-construction-bank-announces-strategic-pact-alibaba/

35 BOC, Tencent establish joint laboratory of financial technology. (2017, June 23). China Daily. Retrieved from http://www.chinadaily.com.cn/business/tech/2017-06/23/content_29858963.htm

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Within China, WeChat Pay appears to be catching up with Alipay (see Exhibit 2),36 despite having started a decade later. In 2016, Alipay’s market share dropped to 55% (from 82% in 2014), with WeChat Pay claiming 37% (up from 10% two years ago). A year later, in 2017, Alipay’s share dropped further to 54% and WeChat Pay’s share increased to 40%.37 Outside of China, the situation is starkly different. Both Alipay and WeChat Pay are mobile payment tools but Alipay functions as a standalone mobile payment app, while WeChat Pay is one of the functions in a social media mobile app popular only in China. This might prove troublesome for WeChat Pay in countries which already have their own developed social network ecosystems such as Facebook, LINE, Kakao and WhatsApp. International users may see little reason to use WeChat if they are already active on another texting app or social network. Apart from social media platform independence and an early-bird advantage, Alipay also has an edge in its overseas payment network, with acceptance in more than 120,000 brick-and-mortar stores across 26 countries. WeChat Pay, on the other hand, is still catching up. As of end 2017, it was accepted in a mere 15 countries around the world.38 SINGAPORE’S E-PAYMENT ECOSYSTEM The Network for Electronic Transfers (Singapore) Pte. Ltd. (NETS) was set up in 1985 to push Singapore towards becoming a cashless society.39 Founded by a consortium of local banks – DBS Bank Ltd, Keppel Bank, OCBC Bank, OUB, POSB, Tat Lee Bank and United Overseas Bank Limited40 – it fulfilled dual roles as an acquirer as well as an issuer in the payments industry.41 In 1986, NETS introduced Electronic Funds Transfer at Point-of-Sale or EFTPOS. This allowed consumers to use their bank-issued automated teller machine (ATM) cards to pay for their purchases at shops and restaurants by keying in their personal identification numbers (PINs). Over the next 30 years, consumers and merchants in Singapore adopted NETS and its services as efficient and secure payment methods, with one in three people using its services for their everyday purchases.42 Ahead of the implementation of the Electronic Parking System (EPS) and Electronic Road Pricing (ERP) network in the late 1990s, NETS launched the CashCard stored value card in 1996. This can be inserted into a vehicle’s In-Vehicle Unit (IU) to make e-payments for road and car park usage. 43 13 years later, in 2009, NETS launched the FlashPay card, which could be used for the above as well as to make e-payments for public transport.44 In 2015, the Land Transport Authority of Singapore (LTA) and NETS jointly created the NETS Virtual CashCard (vCashCard), which allows customers to pay ERP charges using their credit or debit cards.45

36 Aveni, T. & Roest, J. (2017, December) China’s Alipay and WeChat Pay: Reaching rural users. Retrieved from

https://www.cgap.org/sites/default/files/researches/documents/Brief-Chinas-Alipay-and-WeChat-Pay-Dec-2017.pdf 37 Aldama, Z. (2017, September 9). Going cash free: why China is light years ahead in the online payment revolution. South China

Morning Post. Retrieved from https://www.scmp.com/magazines/post-magazine/long-reads/article/2110118/going-cash-free-why-china-light-years-ahead

38 Show me the (mobile) money: A comparison between Alipay and WeChat. (2017, November 29). Rambus. Retrieved from https://www.rambus.com/blogs/show-mobile-money-comparison-Alipay-wechat/

39 NETS. (2017). Corporate brochure 2017. Retrieved from https://www.nets.com.sg/assets/images/uploads/NETS-Corporate-Brochure-2017.pdf

40 NETS. (N.D.). Milestones. Retrieved from https://www.nets.com.sg/about/milestones/ 41 NETS. (N.D.). About us. Retrieved from https://flashpay.nets.com.sg/Info.aspx?pc=about 42 ibid. 43 Land Transport Authority of Singapore. (2018, November 16). In-vehicle unit. Retrieved from

https://www.lta.gov.sg/content/ltaweb/en/roads-and-motoring/managing-traffic-and-congestion/in-vehicle-unit-iu.html 44 Monetary Authority of Singapore. (2018, June 20). E-payments for everyone – Keynote speech by Mr Ong Ye Kung at the 45th

Annual Dinner of the Association of Banks in Singapore on 20 June 2018. Retrieved from http://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2018/EPayments-for-Everyone.aspx

45 Chan, J. (2017, December 16). NETS will secure its place at the top of the payment industry. ASEAN Today. Retrieved from https://www.aseantoday.com/2017/12/the-overly-pampered-nets-enjoys-a-secured-place-in-the-payment-industry/

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In 2001, NETS launched eNETS, an online payment gateway service which enables consumers to make online or mobile payments via direct debit or credit card to certain merchants and the Singapore government, as well as to pay bills and fines at AXS stations46 and make purchases on Taobao. NETS MerchantConnect – a platform for NETS to provide merchants with technical support, marketing of payment solutions and so on – was launched in 2010. In 2014, NETS collaborated with Alipay to launch the Alipay FlashPay Transport Card47 – the first overseas transport card for Chinese tourists. This card could be purchased through Alipay prior to arriving in Singapore, and used on all local transit, taxis, and at NETS acceptance points island-wide. In 2011, NETS was designated the national payment system by the Monetary Authority of Singapore (MAS) in view of its importance to Singapore’s financial system. It currently has more than 100,000 acceptance points at 37,000 merchants,48 and works with new and potential business owners to extend its reach of electronic points-of-sales (POS) across Singapore. 49 To date, NETS EFTPOS and GIRO (General Interbank Recurring Order) are the preferred C2B (consumer to business) modes of e-payment due to their safety and convenience: they enable direct debiting from bank accounts, eliminating the need to top up electronic wallets.50 In 2016, NETS reported that its various payment schemes processed S$24 billion (US$17.5 billion) in total transaction value in the country.51 In recent years, several innovations that leverage on new technologies have been introduced. In 2016, NETS eCommerce was launched to provide a quick and affordable end-to-end transaction management solution for online shops. This solution is integrated with secure payment options using eNETS debit and credit e-payment modes.52 In the same year, NETS started offering merchants business solutions to help them improve productivity and cost efficiency, build customer loyalty and expand into new revenue channels online.53 In 2017, more services were added, such as PayNow, a peer to peer transfer service; NETSPay, the mobile e-wallet version of NETS; and NETS QR, a payment option that utilises QR codes.54 These have made paying bills and transacting even more convenient and accessible through mobile phones.55 The take-up rate for PayNow has been encouraging – there have been more than 1.4 million registrations (25% of the country’s population), and close to S$900 million (US$655 million) has been transferred through the app since its launch.56 NETSPay leveraged on NETS’s large existing user base of consumers and merchants, forgoing the need for the PSP to expend additional capital to acquire users for the service. This move was seen favourably by industry players.57

46 The AXS Station is a multi-application transactional terminal that comes with a debit card and credit card payment facilities. Source:

AXS. (N.D.). AXS station. Retrieved from http://www.axs.com.sg/axsNetwork_axsStation.php 47 Lee, M. (2014, December 1). NETS and Alipay launch FlashPay card for Chinese tourists visiting S'pore. AsiaOne. Retrieved from

http://www.asiaone.com/news/travel/nets-and-Alipay-launch-flashpay-card-chinese-tourists-visiting-spore 48 NETS. (2017, November 20). Singapore’s local banks join hands with NETS to launch unified digital payment platform for the

nation. Retrieved from https://www.nets.com.sg/newsroom/singapores-local-banks-join-hands-with-nets-to-launch-unified-digital-payment-platform-for-the-nation/

49 NETS. (N.D.). About us. Retrieved from https://flashpay.nets.com.sg/Info.aspx?pc=about 50 Monetary Authority of Singapore. (2018, June 20). E-payments for everyone – Keynote speech by Mr Ong Ye Kung at the 45th

Annual Dinner of the Association of Banks in Singapore on 20 June 2018. Retrieved from http://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2018/EPayments-for-Everyone.aspx

51 NETS. (2017). Corporate brochure 2017. Retrieved from https://www.nets.com.sg/assets/images/uploads/NETS-Corporate-Brochure-2017.pdf

52 NETS. (N.D.). Ecommerce solutions. Retrieved from https://www.nets.com.sg/business/ecommerce-solutions/ 53 3 ways NETS Merchant Solutions can meet your business needs. (2016, November 25). The Straits Times. Retrieved from

https://www.straitstimes.com/tech/3-ways-nets-merchant-solutions-can-meet-your-business-needs 54 NETS (N.D.). NETS QR. Retrieved from https://www.nets.com.sg/personal/retail-payments/nets-qr/ 55 NETS. (2018, October 15). NETS launches PayCollect; using request-to-pay to help businesses collect faster. Retrieved from

https://www.nets.com.sg/newsroom/nets-launches-paycollect;-using-request-to-pay-to-help-businesses-collect-faster/ 56 Monetary Authority of Singapore. (2018, June 20). E-payments for everyone – Keynote speech by Mr Ong Ye Kung at the 45th

Annual Dinner of the Association of Banks in Singapore on 20 June 2018. Retrieved from http://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2018/EPayments-for-Everyone.aspx

57 Tung, Y. H. (2017, September 13). Nets could become Singapore’s national e-payment service operator. Yahoo! News. Retrieved from https://sg.news.yahoo.com/nets-could-become-singapore-national-e-payment-operator-104235781.html

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In 2018, NETS announced PayCollect, a service that allows businesses to issue invoices and accept e-payments, speeding up the collections process and improving their cash flow management.58 In that same announcement, NETS also revealed that PayCollect was integrated with popular accounting packages; this allowed corporations and SMEs to go fully electronic for the entire billing, payment and reconciliation cycle. Role of the Singapore Government The Monetary Authority of Singapore (MAS), with participation from the banking industry, led the development of the nation’s interoperable backend infrastructure for e-payment, the Fast and Secure Transfers system (FAST). Touted to be among the first of its kind in the world,59 it enabled 24/7 direct transfers from one bank account to another, across banks, for C2C, C2B, and B2B payments. In 2014, FAST was awarded 1st Runner Up for the Most Innovative Use of Infocomm Technology (Private Sector – General) at the National Infocomm Awards.60 FAST was a robust and flexible system that allowed the addition of features. For example, it was able to support PayNow and NETSPay when they were launched in 2017. In August 2018, FAST was also able to support PayNow’s extension to corporate clients of banks operating in Singapore such as Citibank, Development Bank of Singapore (DBS), HSBC, Maybank, Overseas Chinese Banking Corporation (OCBC), Standard Chartered Bank and United Overseas Bank (UOB).61 Local media reported that MAS also played a pivotal role in the development and deployment of the nation’s unified point-of-sale terminals (UPOS).62 Since 2016, MAS has led efforts to develop a UPOS terminal that will allow businesses to accept all forms of payment cards, including those embedded in mobile phones. UPOS is expected to support a wide range of payment modes such as NETS, Apple Pay, Android Pay, Samsung Pay and others. In early August 2017, the government announced the setting up of a Payments Council comprising 20 leaders from banks, PSPs, businesses and trade associations. 63 This Council aimed to encourage collaboration within industries, promote interoperability among e-payment solutions, develop strategies to drive pervasive adoption of e-payment, and make recommendations to MAS regarding payment-related policies. In November 2017, the Payments Council pushed for a national QR code payment standard (SGQR) to be developed and implemented, allowing businesses to display only one QR code that could be scanned with any e-payment system – from DBS PayLah! to Alipay.64 This would make transactions easier and less confusing for consumers and small businesses, especially for small value payments. Merchants would only have to display one QR code that could be used with multiple payment modes, instead of one QR code for each payment mode.

58 NETS. (2018, October 15). NETS launches PayCollect; using request-to-pay to help businesses collect faster. Retrieved from

https://www.nets.com.sg/newsroom/nets-launches-paycollect;-using-request-to-pay-to-help-businesses-collect-faster/ 59 Monetary Authority of Singapore. (2018, June 20). E-payments for everyone – Keynote speech by Mr Ong Ye Kung at the 45th

Annual Dinner of the Association of Banks in Singapore on 20 June 2018. Retrieved from http://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2018/EPayments-for-Everyone.aspx

60 NETS. (2017). Corporate brochure 2017. Retrieved from https://www.nets.com.sg/assets/images/uploads/NETS-Corporate-Brochure-2017.pdf

61 Heng, J. (2018, August 13). PayNow Corporate launched today. The Business Times. Retrieved from https://www.businesstimes.com.sg/consumer/paynow-corporate-launched-today

62 MAS working on unified Point of Sales terminal for seamless payments. (2016, April 2). Channel News Asia. Retrieved from https://www.channelnewsasia.com/news/singapore/mas-working-on-unified-point-of-sales-terminal-for-seamless-paym-8105958

63 Shiao, V. (2017, August 2). MAS launches Payments Council chaired by its MD Ravi Menon. The Business Times. Retrieved from https://www.businesstimes.com.sg/banking-finance/mas-launches-payments-council-chaired-by-its-md-ravi-menon

64 Monetary Authority of Singapore. (2017, November 20). Payments Council endorses Singapore Quick Response Code Specifications for electronic payments. Retrieved from http://www.mas.gov.sg/News-and-Publications/Media-Releases/2017/Payments-Council-endorses-Singapore-Quick-Response-Code-Specifications-for-electronic-payments.aspx

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In September 2018, MAS announced that the development of SGQR was complete, and that this universal QR code would be rolled out within the next six months. It would replace all existing QR codes for e-payment and support 27 e-payment modes.65 Like FAST, this innovation was developed by an industry taskforce led by government agencies, namely MAS and the Infocomm Media Development Authority (IDA). A few days after the announcement of the official launch of SGQR, the government also released news that FAST would be accessible to all, regardless of whether the solution was offered by a bank or e-payment processing company.66 FAST would essentially become the master connector to all e-wallets, payment apps, and bank accounts for quick fund transfers, overcoming existing barriers between them. More importantly, non-bank entities such as Grab, Razer and Singtel would be able to assess the central payment infrastructure once technical requirements had been ironed out. In the same month, it was also announced that NETS had been appointed as the master acquirer to facilitate e-payment in all 12,000 hawker stalls, canteens and coffee shops in Singapore with a single and unified system.67 NETS would be the sole touch-point for 20 payment schemes, including the e-wallets of Singtel DASH and GrabPay as well as Visa and Mastercard credit cards by August 2019. Also, NETS would be the only party to reconcile accounts, doing away with the hassle of having to deal with different e-payment firms to receive payments. Lastly, to encourage adoption, the all-in-one e-payment terminal would be rented to hawkers and participating food businesses at no charge for the first three years. Proliferation of Players and Offerings Following the Prime Minister’s National Day Rally message in 2017 for the nation to embrace e-payment, numerous companies decided to join the payment solutions ecosystem. Then-Minister for Education and MAS Board member Mr Ong Ye Kung explained that Singapore had deliberately taken a unique approach to allow more competition and innovation in the payments space.68 He stressed that while having one or two players dominate the market brings short term convenience to consumers, the lack of competition in the e-payment space may present downside risks in the longer term. Having just one or two dominant players who wield significant market power and own all the transaction data and customer information may make it tough for other PSPs to enter and compete fairly in the market, thus depriving the market of the fruits of healthy competition. Over time, this could also slow down the rate of innovation and give rise to the risk of unfair pricing for customers. As summarised by Mr Ong:

“[T]he key principle in our approach to e-payment: many choices but interoperable.” In May 2018, Singtel and Razer announced a partnership to create a mega e-payment network, with plans to connect 50 million users in Southeast Asia.69 Both companies stated that they would link their respective e-payment systems to create an interoperable network that allows credits from one system to be accepted in another. Singtel brings to the table its DASH e-wallet with more than 500,000 users, many of whom are foreign workers using the app for remittance. DASH, a collaboration between telecommunications giant Singtel and Standard Chartered Bank, was launched in June 2014. It allowed users to make payments with

65 Tham, I. (2018, September 18). Universal SGQR code to replace others within six months. The Straits Times. Retrieved from

https://www.straitstimes.com/tech/universal-sgqr-code-to-replace-others-within-six-months 66 Tham, I. (2018, September 18). Interbank system Fast to be linked to e-payment scene. The Straits Times. Retrieved from

https://www.straitstimes.com/singapore/interbank-system-fast-to-be-linked-to-e-payment-scene 67 Tham, I. (2018, September 12). Nets appointed to run unified e-payment system at hawker centres, canteens and coffee shops in

Singapore. The Straits Times. Retrieved from https://www.straitstimes.com/singapore/nets-appointed-to-unify-e-payments-at-hawker-centres-canteens-and-coffee-shops-in

68 Monetary Authority of Singapore. (2018, June 20). E-payments for everyone – Keynote speech by Mr Ong Ye Kung at the 45th Annual Dinner of the Association of Banks in Singapore on 20 June 2018. Retrieved from http://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2018/EPayments-for-Everyone.aspx

69 Tham, I. (2018, May 2). Singtel and Razer in e-payment tie-up to unify cashless payment in South-east Asia. The Straits Times. Retrieved from https://www.straitstimes.com/tech/singtel-razer-in-e-payment-tie-up-to-unify-cashless-payments-in-southeast-asia

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their mobile phones at over 50,000 locations for transport, dining, and shopping at retail outlets as well as online platforms such as Lazada and Qoo10.70 While gaming peripherals firm Razer plans to launch its RazerPay e-wallet in late 2018 in Singapore, the company announced that its app had already been rolled out in Malaysia in July 2018, reaching more than 6,000 acceptance points at major retail and F&B outlets.71 In addition, Razer unveiled plans to collaborate with UOB to pioneer a non-bank e-wallet app to offer fund transfers and cash-outs through NETS’s FAST network. It also publicised its buyout of MOL Global, whose e-payment gateway is used by online merchants Lazada and Expedia, signalling greater involvement in this space over the coming years.72 Grab, Singapore’s home-grown and leading ride-hailing operator in Southeast Asia, launched its cashless payment system, GrabPay, in 25 cash-reliant restaurants and hawker stalls on 1 November 2017, and announced that it would launch the GrabPay wallet across Southeast Asia in 2018.73 GrabPay allows its users to scan QR codes to make e-payment. In Singapore, as of 2017, the GrabPay user base numbered about four million; most of these users also utilised its ride-hailing platform. The company stated that its goal was to have 1,000 merchants using GrabPay by the end of 2017,74 and in the long-term, to bring on board all 20,000-odd merchants in Singapore as well as businesses across Southeast Asia.75 In June 2018, Grab partnered with Maybank to boost adoption and usage of GrabPay in Malaysia.76 These actions by NETS, the government and other PSPs have resulted in a promising take-up rate for e-payment in Singapore. More than eight in 10 consumers in Singapore have adopted e-payment and almost 3 in 5 merchants in Singapore accept e-payments. In addition, the value of e-payments measured by FAST and card transactions has reportedly been growing by more than $10 billion every year.77 Ultimately, this is the end-goal for the nation as laid down by Mr Ong:

“The aim is not to force a cashless society, but to enable everyone to enjoy the convenience and efficiency of e-payments [which are] simple, swift, safe and seamless.”

In summary, the government’s goal is to nurture a variety of competing yet interoperable payment solutions to maximise convenience and choice for consumers and merchants, as well as to encourage innovation. Interoperability is ensured with government support for backend infrastructure, namely FAST, which allows all PSPs to plug in and provide e-payment services easily and seamlessly.

70 Singtel. (2014, June 3). Dash transforms every mobile phone into an ATM. Retrieved from https://www.singtel.com/about-

Us/news-releases/dash-transforms-every-mobile-phone-atm 71 Razer Pay to launch in Singapore by Q1 next year. (2018, September 8). The Straits Times. Retrieved from

https://www.straitstimes.com/business/companies-markets/razer-pay-to-launch-in-spore-by-q1-next-year 72 Tham, I. (2018, May 2). Singtel and Razer in e-payment tie-up to unify cashless payment in South-east Asia. The Straits Times.

Retrieved from https://www.straitstimes.com/tech/singtel-razer-in-e-payment-tie-up-to-unify-cashless-payments-in-southeast-asia 73 Grab launches e-payment platform in restaurants, hawker stalls. (2017, November 1). Channel News Asia. Retrieved from

https://www.channelnewsasia.com/news/singapore/grab-launches-e-payment-platform-in-restaurants-hawker-stalls-9365442 74 Zhang, L. (2017, November 3). Grab joins e-payment race with four other players, where’s RazerPay?. The Independent Singapore.

Retrieved from http://theindependent.sg/grab-joins-e-payment-race-with-four-other-players-wheres-razerpay/ 75 Choudhury, S. R. (2017, November 1). Uber rival Grab says you can now pay restaurant bills using its mobile wallet. CNBC.

Retrieved from https://www.cnbc.com/2017/11/01/grab-says-users-can-now-pay-for-goods-using-grabpay.html 76 Maybank tie-up puts Grabpay ahead in cashless race. (2018, June 3). Finews.asia. Retrieved from

https://www.finews.asia/finance/26992-maybank-grab-malaysia-cashless-e-payment 77 Monetary Authority of Singapore. (2018, June 20). E-payments for everyone – Keynote speech by Mr Ong Ye Kung at the 45th

Annual Dinner of the Association of Banks in Singapore on 20 June 2018. Retrieved from http://www.mas.gov.sg/News-and-Publications/Speeches-and-Monetary-Policy-Statements/Speeches/2018/EPayments-for-Everyone.aspx

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E-PAYMENT ECOSYSTEMS – EXPANDING INTERNATIONALLY The Chinese e-payment market seems to have matured with two dominant players that are actively expanding overseas.78 With Alipay and WeChat Pay dominating 94% of the industry, it would be tough for any other PSP to enter the domestic market. Payment systems popular elsewhere in the world, such as Apple Pay and PayPal, do not even warrant a namecheck in China and are often relegated to the “others” category.79 With a stable local market, both PSPs are looking beyond Chinese shores for future growth. One promising strategy that has emerged is to ride on the wave of outbound Chinese tourists, who are increasingly spending more as they travel and are happy to use e-payment services while overseas.80 In 2016, a report highlighted that the five countries receiving the most Chinese tourists were all in Asia: Thailand, Singapore, South Korea, Japan, and Malaysia, with Vietnam and the Philippines ranked among the top 10.81 The report stated that both PSPs are expected to eventually expand and target the local population of these countries.

At the time of writing, however, WeChat Pay had indicated that it would not seek to offer its e-wallet service to overseas customers over the next three years, and had announced that it would remain focused on serving outbound Chinese tourists better in popular overseas destinations.82 At the moment, the user bases of Alipay and WeChat Pay are primarily Chinese. That said, the sheer number of outbound users is still sufficient to drive the internationalisation of these two PSPs.

“We already have partnerships with some of Europe’s best-known retailers, which have proven popular with traveling Chinese consumers. Our users’ lifestyles are increasingly global, so it is vital we are able to work with the leading payment providers across the world.”83

Douglas Feagin, Senior Vice President of Ant Financial and President of Alipay International

Innovation in customer services – from delivery to mobile banking – has happened faster in China than in the West in part because the country’s regulatory environment is less mature.84 Both Tencent and Alibaba, expecting a bumpy road ahead for their expansion plans beyond China, have tried to circumvent regulatory barriers by investing heavily in startups abroad, especially those in neighbouring Asian countries.85 While it is a tedious and slow process, both PSPs have recognised the strategic importance of establishing local partners in the countries that they seek to expand into; in the long run, synergy between the PSPs and these firms would be created by sharing technologies, data, users and consumption scenarios.86

78 Gentlemen in China. (2017, October 25). Online payment in China: WeChat Pay vs Alipay. Marketing to China. Retrieved from

https://www.marketingtochina.com/online-payment-china-wechat-pay-vs-Alipay/ 79 Aldama, Z. (2017, September 9). Going cash free: why China is light years ahead in the online payment revolution. South China

Morning Post. Retrieved from https://www.scmp.com/magazines/post-magazine/long-reads/article/2110118/going-cash-free-why-china-light-years-ahead

80 Zhang, R. (2018, August 3). Alipay and WeChat Pay eye china’s outbound tourism. The Passage. Retrieved from https://thepassage.cc/article/290/

81 Hahn, L. (2017, December 12). WeChat Pay moves against Alipay in overseas expansion. Capital Watch. Retrieved from http://www.capitalwatch.com/article-1530-1.html

82 Chen, C. & Deng, I. (2018, July 20). WeChat Pay to keep overseas focus on outbound tourism instead of offering more local wallets. South China Morning Post. Retrieved from https://www.scmp.com/tech/article/2154828/wechat-pay-keep-overseas-focus-outbound-tourism-instead-offering-more-local

83 Xiao, E. (2017, May 9). Chinese tourists are bringing their wallets – and China’s tech giants – overseas. Tech in Asia. Retrieved from https://www.techinasia.com/chinese-tourists-wechat-Alipay-global-expansion

84 The mobile payments race: Why China is leading the pack – for now. (2018, January 17). Knowledge @ Wharton. Retrieved from http://knowledge.wharton.upenn.edu/article/how-will-chinas-overseas-mobile-payment-systems-fare/

85 Xiao, E. (2017, April 20). How WeChat Pay became Alipay’s largest rival. Tech in Asia. Retrieved from https://www.techinasia.com/wechat-pay-vs-Alipay

86 Lee, E. (2017, August 18). Alipay vs WeChat: Challenges and strategies of two payment giants going global. TechNode. Retrieved from https://technode.com/2017/08/18/Alipay-vs-wechat-challenges-and-strategies-of-two-payment-giants-going-global/

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In 2016, Alibaba purchased a US$1 billion controlling stake in the Southeast Asian e-commerce giant Lazada and acquired stakes in Paytm, an Indian payments company, as well as Mynt, a financial services startup in the Philippines. 87 The year after, Ant Financial announced its merger with Singapore-based HelloPay Group, which provides payment solutions to Lazada. In India, Alibaba has deployed a three-pronged business model that it had honed in its home turf: shopping, payments and delivery. It has pumped US$200 million into the country’s leading online grocery group BigBasket, US$200 million into food-ordering app Zomato, and an undisclosed investment in India’s logistics group XpressBees.88 Tencent’s overseas forays included a US$1.4 billion investment into Indian e-commerce company Flipkart, alongside eBay and Microsoft, as well as a joint venture with Thailand’s largest e-book provider Ookbee.89 Tencent also owns stakes in Snap (US-based social media giant), Tesla (US-based electric carmaker) and Spotify (global music streaming service based in Sweden).90 It may be a challenge for WeChat Pay to expand in countries which have well-developed social networks such as WhatsApp and Kakao (a South Korean messaging platform), as prospective users would have to register on WeChat – a social media platform that many outside China are not familiar with – prior to setting up the e-wallet.91 Another problem WeChat faces in wooing users is its reputed ability to access the text messages, contact lists, and GPS locations of its users.92 Many consumers are reluctant to use WeChat due to privacy concerns. Furthermore, countries such as India, Australia, United States and Taiwan fear that this may present a threat to national and/or regional security. In June 2013, the Indian Intelligence Bureau flagged WeChat for security concerns and debated a ban on WeChat for potentially collecting too much personal information and data from its users. Meanwhile, in Taiwan, legislators were concerned that the potential exposure of private communications was a threat to regional security. In a 2016 Amnesty International report ranking technology companies on their implementation of encryption to protect the human rights of their users, Tencent was placed last out of 11 companies – which included Facebook, Apple and Google – for its lack of privacy protections such as not using end-to-end encryption and not disclosing government requests for data. In Singapore, NETS is well-positioned to remain at the top of the payment industry. To grow further, NETS has been targeting overseas expansion in China and Indonesia.93 A partnership with QR code payment providers in these countries could allow Singaporeans to make QR code-based e-payments via their banks or NETSPay apps while abroad. In September 2018, NETS announced that its services would be made available outside of Singapore for the first time94 – consumers based in Singapore could make e-payments abroad using NETSPay through the app’s partnership with China’s UnionPay at key destinations such as Australia, China, Hong Kong, Japan, Malaysia, South Korea and Thailand.95

87 Xiao, E. (2017, April 20). How WeChat Pay became Alipay’s largest rival. Tech in Asia. Retrieved from

https://www.techinasia.com/wechat-pay-vs-Alipay 88 Alibaba targets India as key ecommerce battleground. (2018, February 6). The Financial Times. Retrieved from

https://www.ft.com/content/8ffad544-0b2a-11e8-8eb7-42f857ea9f09 89 Xiao, E. (2017, April 20). How WeChat Pay became Alipay’s largest rival. Tech in Asia. Retrieved from

https://www.techinasia.com/wechat-pay-vs-Alipay 90 Tencent and Alibaba go abroad to push for growth and know-how. (2017, December 15). The Financial Times. Retrieved from

https://www.ft.com/content/a968cf62-de3f-11e7-a8a4-0a1e63a52f9c 91 FOMO Pay. (2017, August 28). WeChat Pay playing catch-up with Alipay in overseas markets. Retrieved from

https://www.fomopay.com/2017/08/28/wechat-pay-playing-catch-alipay-overseas-markets/ 92 Paska, A. (2018, January 24). Review: Why WeChat Is more popular In China given that WhatsApp is more popular elsewhere?.

Go Tech UG. Retrieved from https://www.gotechug.com/why-wechat-is-more-popular-in-china-than-whatsapp/ 93 Chan, J. (2017, December 16). NETS will secure its place at the top of the payment industry. Asean Today. Retrieved from

https://www.aseantoday.com/2017/12/the-overly-pampered-nets-enjoys-a-secured-place-in-the-payment-industry/ 94 NETS. (2018, September 11). UnionPay International and NETS enter into strategic partnership with major NETSPay app

upgrade. Retrieved from https://www.nets.com.sg/newsroom/unionpay-international-and-nets-enter-into-strategic-partnership-with-major-netspay-app-upgrade/

95 NETS taps UnionPay for overseas e-payment. (2018, September 11). Singapore Business Review. Retrieved from https://sbr.com.sg/financial-services/more-news/nets-taps-unionpay-overseas-e-payment

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Facilitated by the government agency Enterprise Singapore (previously known as International Enterprise Singapore), NETS also signed a Memorandum of Understanding (MOU) with the National Payments Corporation of India (NPCI), an umbrella organisation for all retail payments and settlement systems in India, to enable cross-border usage of their payment solutions in India and Singapore. 96 Under the agreement, NETS cards and digital wallets could be used for payments in India. Similarly, RuPay97-powered debit and credit cards would be accepted at all NETS terminals in Singapore. The first phase of the partnership, expected to be launched in mid-2018, would see NETS and NPCI working together to enable NETS-powered digital cards to be accepted as a payment option on NPCI’s e-commerce merchants’ websites in India and RuPay cards to be accepted via QR code payment at all NETS acceptance points in Singapore. In the second phase of the agreement, the two companies would work towards enabling NETS card and NETSPay acceptance on NPCI’s POS network throughout India as well as RuPay card acceptance on all NETS terminals in Singapore. In November 2018, NETS announced another MOU: it had inked a partnership with the National ITMX Company Limited (ITMX), Thailand’s key interbank payment infrastructure and central data processing system, to establish the ITMX-NETS Payment Technology Exchange & Development Programme.98 Under the agreement, the ITMX-NETS Programme would allow executives from both companies to exchange ideas, share expertise and work together on domestic and regional payments initiatives, including cross-border usage and acceptance of each other’s payment services.

96 NETS. (2017, November 13). NETS ties up with India’s National Payments Corporation of India to facilitate cross-border usage &

acceptance. Retrieved from https://www.nets.com.sg/newsroom/nets-ties-up-with-indias-national-payments-corporation-of-india-to-facilitate-cross-border-usage-and-acceptance/

97 RuPay is a domestic card payment scheme launched by the National Payments Corporation of India (NPCI). It facilitates e-payment in India. Source: RuPay. (N.D.). Who we are. Retrieved from https://www.rupay.co.in/who-we-are

98 NETS. (2018, November 12). NETS Group joins hands with Thailand’s ITMX to enable cross-border usage & acceptance. Retrieved from https://www.nets.com.sg/newsroom/nets-group-joins-hands-with-thailands-itmx-to-enable-cross-border-usage-and-acceptance/

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EXHIBIT 1A: ALIPAY E-WALLET – AN INTEGRATED ECOSYSTEM

Source: Alipay

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EXHIBIT 1B: WECHAT PAY E-WALLET – AN INTEGRATED ECOSYSTEM

Source: WeChat Pay

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EXHIBIT 2: THE RISE OF WECHAT PAY

Source: Consultative Group to Assist the Poor

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