A Look at Why Taiwan’s Mobile Payments Market is Falling Behind

In a field where mobile payments are often being accepted with dizzying speed, Taiwan is a clear laggard. So what’s behind the dizzyingly slow speed at which Taiwan is getting into the mobile payments market?

Only 13 percent of the Taiwanese population is using mobile payments, and considering that neighbors from China to South Korea are ranging between 77 and 64 percent use, respectively—in the middle of that range are India at 76 percent and Indonesia at 67 percent—it’s clear that Taiwan is falling behind.

As to the why, it’s not a lack of infrastructure. Taiwan’s smartphone penetration rate is projected to hit 93 percent this year, and over 80 percent of Taiwan has access to mobile internet.

It also doesn’t seem to be a problem of means; Taiwan’s economy has been ramping up well ahead of its neighbors—the eighties were famous for toys that were “Made in Taiwan”—and the public is both aware of and interested in mobile payments by turns. Sixty-one percent are aware of near-field communications (NFC), according to a Mastercard study, and over 80 percent are either willing to try contactless payments or keep using them, where available.

The problem seems to be that Taiwanese just don’t see much reason to use mobile payments, despite being able to and being interested in them. Better than half in a Nielsen study were “unlikely” to use mobile payments at retail shops, bars, and restaurants. The global average of disinterest at these locations is 40 percent. Around three out of four—73 percent—have concerns about mobile payment security.

While even the Taiwanese government is eager to get users on board with mobile payments, having a goal of 90 percent of smartphone users putting this platform to work by 2025, the problem is mostly one of reluctance. Thankfully, this problem can often be addressed by time and positive history; if even a few users can put mobile payments to work regularly and without issues, many of those security concerns should be addressed.

This is a point where marketing can be a real help; campaigns showing happy, secure users may persuade the Taiwanese that mobile payments are safe and overcome the great objection of safety.