The Comparison of Third-Party Payment between Taiwan and Mainland China

Taiwan’s third-party payment platforms blossomed in order to support e-commerce. Taiwan e-commerce industry has mature IT infrastructure, but they still advance slowly because of the strict statutory regulations, which coincides with the development of e-commerce. Statutory restrictions have gone loosed in recent year. However, the restrictions in Taiwan are still more rigorous than Mainland China, a much bigger economy than Taiwan. And people are accustomed to managing payments by using other methods except for using third-party payment platforms. Third-party payment is used only for online shopping, and its varieties of service are limited. That is why it is not widespread in Taiwan. Most people manage cash flows through banks rather than third-party payment platforms. Market segmentation exists between third-party payment platforms and banks. Both have their own superiority and provide different services. Third-party payment has strict impact on financial system in Mainland China, but the situation is not so in Taiwan. Compared to the third-party payment in Mainland China, the feature in Taiwan is not distinct. There are many differences between two countries including company scale, market scope , varieties of service, regulations and consumer habits. The third-party payment platforms can cope with the obstacles from the suggestions below. At first, to establish differential operational management in competitive markets. We use big data analysis to search new commercial opportunities. Secondly, develop the mobile payment services and cooperate with other industries such as international credit card processing companies, telecommunication companies, financial institutions and mobile manufactures. Thirdly, negotiate with government and strive for less statutory regulations. It makes the varieties of service more abundant and more attractive. Fourthly, cooperate with industries in other countries and connect cross-border e-commerce. Finally, form an alliance with different industries so as to generate vertical integration. It not only helps to provide better services, but also reduces the cost of production. Besides giving suggestions for third-party payment platforms, we have some advices to the government. First of all, government must establish an active e-commerce environment, which guarantees fair competition for e-payment and does not benefit specific industries. Formulate appropriate and gradual restrictions. Do not influence financial stability and not limit the development of third-party payment in the same time. Finally, helps to negotiate with Chinese government to remove unfair e-commerce regulations.