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.

COPYRIGHT ? 2018 Nanyang Technological University, Singapore. All rights reserved. No part of this publication may
be copied, stored, transmitted, altered, reproduced or distributed in any form or medium whatsoever without the written
consent of Nanyang Technological University.

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

HBSP No.: NTU229
Ref No.: ABCC-2018-033
Date: 26 December 2018

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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 (???), 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

22 Zahn, N. (2018, May 11). Insight: How Chinese payment apps are taking over public services. GovInsider. Retrieved from

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

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

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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