Gamania Digital Entertainment Co (遊戲橘子) chief executive officer Albert Liu (劉柏園) yesterday predicted that only one or two third-party payment service providers would be profitable in Taiwan, given the relatively small size of the market.
“It will be very costly and competitive. I forecast that we will see only two companies win the market by September next year at the earliest,” Liu told reporters yesterday following the launch of the company’s electronics payment tool, Gama Pay.
Gama Pay is the nation’s second third-party payment operator to offer services. AllPay Financial Information Service Co Ltd (歐付寶), a subsidiary of MacroWell OMG Digital Entertainment Co (歐買尬), launched its business on Oct. 7.
PChome Online Inc’s (網路家庭) payment service, PChome InterPay, is scheduled to become operational on Wednesday next week, while another two operators — Pay2Go Technology Corp (智付寶) and ezPay (台灣支付) — are expected to launch by the first quarter of next year.
Liu said the total trading volume of third-party payment services in Taiwan would be about NT$100 billion (US$3.17 billion) per year.
“A market this size has no room for more than two operators,” he said.
A “successful” third-party payment operator in Taiwan would need to have at least 3 million to 5 million active registered members to be profitable, he said.
The number of stores prepared to collaborate with a system would be the key to gaining the largest market share, he said.
The five payment operators, including Gamania, are expected to spend most of their resources on marketing and offering subsidies, Liu said.
Gamania will initially focus on attracting its 3 million gamers to register with Gama Pay by providing in-game subsidies and expanding its strategic partnerships with different stores and merchants, he said.
He said the service is available in more than 20,000 locations across Taiwan, including taxis operated by Taiwan Taxi Corp (台灣大車隊).
Gamania’s subsidiary Gama Pay Co Ltd (橘子支行動支付) has a paid-in capital of NT$600 million to support a marketing campaign, Liu said, adding that the company would raise extra funds next year when necessary.
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