Taiwan Offers Incentives to Mobile Payment Users
That which you want more of, subsidize. That old saw is a fundamental rule of governments worldwide, and it’s one that works shockingly well. Any time you offer direct cash payments to get a thing going on, it tends to get more people interested in doing that thing. The Taiwanese government, in a bid to get more users interested in mobile payments—and more businesses offering mobile payments options to customers—has stepped in with a new plan to offer incentives to mobile payments users.
More specifically, reports note, the Taiwanese government is planning to subsidize mobile payments transaction fees, which will make them easier for merchants to justify putting in place. That in turn should make them more attractive to the end user, who not only will have plenty of places to use mobile payments systems, but won’t have to worry about markup from transaction fees.
Reports note that the Taiwanese Ministry of Finance is planning to offer a tax incentive to small businesses that lets them continue paying just one percent business tax—even if their operations get a lot bigger—as long as mobile payments are an option for the customer.
This is excellent news for mobile payments in Taiwan; right now, reports note, Taiwan is expected to see smartphone penetration of around 93 percent, meaning almost everyone in the country has one of these devices. Mobile payments, meanwhile, aren’t top-of-mind for smartphone owners, however, as just 13 percent of the population is using mobile payments. That’s a hefty slug of people who could be using mobile payments that aren’t, and makes for a clear sign something should be done.
Given that the Taiwanese government has a target of 90 percent mobile payment use by 2025, it’s a safe bet something should be done. There’s no real reason for merchants to offer these incentives, as it doesn’t really matter if they get paid in cash, bitcoin or mobile payments, because they still get paid.
Meanwhile, the average user doesn’t have much incentive here either, as shopping can be done with or without mobile. The government, meanwhile, is likely the one that really wants to see mobile payments used thanks to the potential cost savings involved. By offering incentives, the government gets what it wants and gives merchants and shoppers alike new options.