Hong Kong commuters can now use their UnionPay cards to pay for taxi fares.
One2Paid, a cashless payment solution startup under local fintech company CamClaim, has partnered with UnionPay International, China Mobile Hong Kong, K&R International and JetSet Taxi to provide the mobile payment service.
The payment service, which comes with a mobile POS machine, allows consumers to settle bills with UnionPay cards or the virtual UnionPay card in Apple Pay. The solution is the same as the Near-Field Communication (NFC) payment system adopted by many retail shops.
In the first phase of the launch, 15 taxis started accepting UnionPay cards as a payment option last Friday (Nov. 10). Around 100 to 200 taxis are expected to join in the next three months, CamClaim founder and CEO Joey Lam Tsz-yin said.
Taxi drivers don’t have to pay rental fees and charges during this initial stage of the service.
As Lam explained, taxi drivers using the prevailing mobile payment services need to wait for a few days before they can receive the ride fee, which explains the low usage in the sector.
By using One2Paid, taxi fee is settled within one day and transferred to the driver’s UnionPay debit card account, which they can then cash out anytime.
One2Paid is likely to come head to head with China’s two biggest mobile payments providers, WeChat Pay and Alipay, both of which are extending their usage to taxis and merchants in the Hong Kong market.
“AliPay and WeChat Pay are generally used by mainlanders, while we are targeting a different customer group,” Lam said.
With over six billion UnionPay cards issued in 162 countries and regions, One2Paid is in a strong position to cater for foreign UnionPay cardholders.
This article appeared in the Hong Kong Economic Journal on Nov. 13
Translation by Ben Ng
[Chinese version 中文版]
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