Welcome and Opening Addresses
Overview and objectives
Introduction to the sessions and the objectives of Digital Commerce Asia Pacific
Frameworks for e-Payments
Opportunities for banks and non-banks to expand e-payments
Regulators and national payments organisations across Asia are developing new e-payments frameworks, typically designed to support real-time mobile consumer payments for P2M and P2P applications. The primary objective of these government initiatives is to accelerate the acceptance and usage of electronic payments into new segments, applications and use cases currently dominated by cash. Other objectives include driving financial inclusion for unbanked and underbanked citizens and driving down the costs of e-payments.
- How are e-payments frameworks that formalise real-time consumer payments systems intended to accelerate the adoption and usage of e-payments beyond what is already being achieved?
- How should these e-payments frameworks specify policies, pricing and operational requirements for payments network operators? Should they be open to all banks, PSPs, prepaid issuers, …?
- Some payments frameworks are separating banks and non-banks on different networks. What are the pros and cons versus enabling payments interoperability between banks and nonbanks?
- If interoperable credit transfers are enabled between all banks and non-banks on the same shared network then what are the expected outcomes for e-money issuers, customers and merchants?
- Some new payments frameworks use virtual addressing to simplify transfers to any destination on an interoperable shared payments infrastructure. How are these virtual identities used and managed?
Viewpoint 1: Tan Nyat Chuan, Assistant Governor, Bank Negara Malaysia [~30min]
Viewpoint 2: Buncha Manoonkunchai, Senior Director of Payment Systems Policy, Bank of Thailand [~30min]
Discussion: Enabling new payments landscapes
Why is there a need for new frameworks for e-payments? Are regulators and national payment networks simply looking for new ways to accelerate e-payments acceptance, adoption and usage or are there also other objectives? Are the new payments frameworks designed to make it easier and less costly to on-board micro merchants to accept e-payments? Is one of the objectives to support P2P payments as well as P2M payments, or are they designed to remove this differentiation altogether? Do national real-time consumer payments platforms simply require a payments framework with a different structure? Are new payments frameworks that support all banks and nonbanks more suited to support the growth of digital payments using mobile devices and an “Internet of Payments”? Are these new payments frameworks intended to support both real-time and card-based payments?
Real-Time Consumer Payments
Payments as fast as messaging
A real-time payments network can support a wide range of consumer payments products offered by banks and non-banks, beyond widely publicised mobile QR code payments. Payments that match the speed of instant messaging are a natural fit with the proliferation of smartphones and the growth of digital commerce. The payments industry is realising that push payments can have advantages over pull payments, and not only for onboarding micro merchants through merchant-presented QR. This session explores the opportunities for retail real-time payments.
- What types of consumer payments products will make the best use of a real-time payments infrastructure? Are push payments products better suited than products that use pull payments?
- Will banks or non-banks be more likely to leverage the benefits of a real-time payments infrastructure for to launch new and innovative retail and consumer payments applications, and why?
- Are retail real-time payments more suited to developing markets with underbanked customers, limited card-based payments infrastructure but growing proliferation of smartphones?
- In India real-time consumer payments transactions grew by over 140 times in an 18-month period over 90% were P2P transactions. What is the future for real-time retail payment transactions?
- How do the costs of real-time consumer payments compare to existing e-payments costs, from the perspectives of the payments network operator, banks and nonbanks, merchants and customers?
Viewpoint 1: Tay Gim Soon, Group Chief Operating Officer, PayNet [~20min]
Viewpoint 2: Arthur Wong, Chief Information Officer, Hong Kong Interbank Clearing [~20min]
Discussion: Real-time payments versus card-based payments
Digital payments in Asia are expected1 to grow at 16.4% annually to over US$2.6 trillion by 2022. Will that growth be driven primarily by real-time consumer payments or card-based payments? Or will real-time payments and card-based payments serve different purposes in the consumer payments ecosystem? Implementations of real-time consumer payments have tended to prioritise P2P payments (left unaddressed by card payments) over P2M payments but will this always be the case? Will real-time P2M payments compete more effectively with card payments in online scenarios but less effectively in-store? Is the growing interest in real-time consumer payments likely to lead to a transition from card-based to real-time payments at the point-of-sale? Will any such transition be influenced by growing number of applications for push payments?
1 - https://www.statista.com/outlook/296/101/digital-payments/asia
QR Code Payments
The new mobile commerce paradigm
The Asian payments industry is expecting that QR codes will redeem mobile payments at the point-of-sale and enable e-payments in new business segments. Financial institutions, fintechs, merchants and even transport operators are aiming to leverage the simplicity and flexibility of QR codes for off-line and online commerce. This excitement is being driven by the adoption and usage of mobile QR code payments in China that has created enormous digital commerce ecosystems. This session explores whether that success story can be replicated in Asia Pacific.
- Much of China’s mobile payments success was driven by consumer-presented QR and pull payments. Will mobile QR code payments succeed in Asia with only half the customer proposition?
- China’s Internet companies incent customers with offers through digital commerce ecosystems larger than Amazon. Can mobile QR payments succeed in Asia without discounts and cashbacks?
- Despite over 500 million mobile QR code payments users in China, the market is dominated by only two companies. How can Asian markets avoid mobile payments fragmentation and customer confusion?
- QR code mobile payment products usually have low or zero payments acceptance fees, although scheme operators may charge merchants for other services. Is this the future of e-payments revenue?
- How important will it be for customers and merchants to have interoperable QR code payments standards? Will this limit useful non-payment data? Is cross-border interoperability required?
Viewpoint 1: Ooi Huey Tyng, Managing Director, GrabPay [~20min]
Viewpoint 2: Mark Tan, Chief Marketing Commercial Officer, TNG Digital [~20min]
Viewpoint 3: Mohd Khairil Abdullah, CEO, Axiata Digital Services [~20min]
Discussion: Managing mobile wallet fragmentation
Today the next step for any successful digital business seems to be to offer their customers a QR code-based mobile wallet. In some Asian markets the number of registered e-money issuers is now greater than the number of card-issuing banks. Some of the benefits for customers include a wide variety of new e-payment options, often combined with frequent discounts and cashbacks. But the explosion of new mobile QR code payment services into the market is also creating fragmentation. Customer experience at the POS can mean selecting between different QR codes to scan, a variety of mobile payment apps to open, and ensuring that they are all topped up. How should the industry manage mobile payments fragmentation? Are there ways for mobile payments companies to cooperate that could ease the fragmentation and benefit themselves as well as patients and customers?
A New e-Payments Ecosystem
How banks can collaborate with non-banks
Asia’s new QR code mobile payments products are being driven by non-banks that include Internet companies, digital businesses, pure-play fintechs, MNOs and more. In China, Internet companies initially connected directly to customer bank accounts (for real-time and card-based payments). In Europe PSD2 is forcing banks to expose their payment systems to trusted third-party providers (TPPs). This session explores the variety of ways in which banks can collaborate with non-banks and how such collaboration might be mutually beneficial to their payments businesses.
- How can banks compete against fintech companies that offer new mobile-driven payment services based on digital commerce businesses with strong non-financial customer propositions and marketing channels?
- What is the role for banks in a digital commerce ecosystem where success depends upon agility to launch, “sticky” marketing and continual innovation of the digital payments services required by customers today?
- China’s mobile payments success was created by Internet companies connecting to customer bank accounts to add payments to their existing businesses. Will that open API approach be repeated across Asia?
- Rather than compete with fintechs, will it make more sense for banks to publish their APIs, collaborate with non-banks and offer third-party branded mobile payment solutions through their existing bank channels?
- PSD2 only applies to banks in Europe for now but is it likely to attract the attention of Asian regulators in the future? In which case how should banks in Asia prepare for PSD2-like regulatory approaches?
Viewpoint 1: Remy Khoo, Head, Digital Innovation & Strategy, Virtual Banking & Payments Community Financial Services, Maybank Malaysia [~20min]
Viewpoint 2: Mayu Suzuki, Director, Planning & Operations, Payments Japan Association [~20min]
Viewpoint 3: Paul Brisk, Managing Director, Digital Payments Asia Pacific [~20min]
Discussion: Banks and non-banks - threats and opportunities
The growing number of fintechs entering the consumer e-payments business is creating a paradigm change to an industry previously dominated by banks. Should this be viewed only as a threat? Or might the number and variety of fintech services enable new business and partnerships opportunities for banks? European PSD2 open banking regulations were designed to encourage competition, enable innovative payments services and improve customer satisfaction. Should banks in Asia also publish their APIs and collaborate with the new entrants? Could they launch new products based on services from fintechs? Would such fintech-powered products successfully expand their portfolios, or cannibalise existing products? Could banks use fintechs as new channels to distribute bank products? What would be the pros and cons of these partnerships and what business models would be feasible?
Close of day one