Total Utility Payment Schemes and New Landscape- Strategic Implications for Mainland China and Taiwan

Consumer payment methods and factors affecting consumer choice of payment methods are analyzed in this study. Convenience, security, and incentives are major factors for consumers to select payment methods or schemes. The dichotomy of consumer payment methods or schemes is used for defining primary consumer payment methods or schemes and confined consumer payment schemes. For expanding uses and profits of the operator(s), consumer payment methods tend to and need to evolve into total utility payment schemes (TUPS), which leads to a drastically new consumer payment landscape. It also affects consumer businesses as well as consumer banking and financial services. Strategies of fast TUPS and swift expansion into Mainland-Chinese frequently would increase substantially the global consumer payment share of Mainland Chinese payment. Close cooperation between Mainland China’s UnionPay and Taiwan banks’ credit/debit cards with appropriate incentives to consumers shall be a strategy in terms of market share and profitability.