Webinar:Cashless Payments – Insights from China and What the Future Holds for Insurers

Cashless payments – Insights
from china and what the future
holds for insurers
16th September 2021

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Disclaimer
Presentations are intended for educational purposes only and do not replace independent
professional judgment. Statements of facts and opinions expressed are those of the
participants individually and, unless expressly stated otherwise, are neither the opinion nor
position of The Digital Insurer. The Digital Insurer do not endorse or approve, and assume
no responsibility for, the content, accuracy or completeness of the information presented.

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• How to participate:
If you have a question please type into the Q&A area
If you have a comment please type into the chat area
• Session format:
The moderator will use a combination of their own questions and those from the
audience
Working together to accelerate the digital transformation of insurance
How to participate

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Opening Remarks
Simon Phipps
Founder, The Digital Insurer
Lapman Lee
Board Member, FTAHK

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Key Questions

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Today’s Panellists

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Discussion Agenda
75
Minutes
Opening remarks
Overview of payments in China and SE Asia - Kapronasia
Historical perspective and outside in view - Qinqin Tech
HK Journey and the road ahead - Octopus
Exploring the implications of the Digital Yuan - Forrester
Panel discussion
TDI / FTAHK updates & wrap-up

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Digital adoption by consumers is accelerating
https://www.the-digital-insurer.com/tdi_pov_papers/tdi-pov-industry-warning-digital-tipping-point-is-approaching-insurers-faster-than-expected/

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https://www.the-digital-insurer.com/tdi_pov_papers/tdi-techmap21/
TDI Tech map ‘21

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Discussion Agenda
Opening remarks
Panel discussion
TDI / FTAHK updates & wrap up

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Overview of Payments in China and SE Asia
Zennon Kapron
Founder/Director
Kapronasia

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Kapronasia
About Kapronasia
Kapronasia is a leading provider of market research covering
fintech, banking, payments, and capital markets. From our
offices and representation in Shanghai, Hong Kong, Taipei,
Seoul, and Singapore, we provide clients across the region
the insight they need to understand and take advantage of
their highest-value opportunities in Asia and help them to
achieve and sustain a competitive advantage in the market.
www.kapronasia.com

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P R I V A T E A N D C O N F I D E N T I A L ©2020 Kapronasia Singapore Pte. Ltd.
The Present
o The new hyper normal
o Digital wallets growing…unevenly…
o Real-time payments and overlay services changing retail
o Competition, competition, competition
o Financial inclusion
o CBDCs

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P R I V A T E A N D C O N F I D E N T I A L ©2020 Kapronasia Singapore Pte. Ltd.
The Future
o Payments are a race to zero
o No longer about payment fees, but what else you can do. (e.g. POS VAS, other financial
products)
o Embedded finance
o Regulation remains unclear

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Overview of Payments in China and SE Asia
Zennon Kapron
Founder/Director
Kapronasia

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Discussion Agenda
Opening remarks
Panel discussion

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Historical perspective and outside in view
Calvin Chao Sheng
Senior Product Director
Qinqin Tech

Background Intro
13 Years of first-hand experience in payment service of China market
• 2003 - 2007, Engineer of Bankcard System in China UnionPay
• 2008 - 2013, Co-founded Payment Startup (UBill) and Merged by HNA
• 2013 - 2015, Ping An Insurance - the Payment Subsidary
• 2015 - 2016, Dianping/Meituan - Division of Loaning/Fund Management
Division
• 2017 - NOW，Left the payment or 'cashless' sector, observing as an outsider

More about experience in Ping An
• Insurance as the 'pool of fund' for potential consuming
• Payment as the essential way of facilitating insurance fund
consuming
• Diversified merchants are developed for the 'insurance (health) card'
• The commission rate is high for 'health-related consuming (10+%)
• Ping An is successful in insurance and wealth management,
- but (B2C) 'payment' is monopolized by Wechat and Alipay in
China

Lessons/Experiences Learned
• Payment is usually not an independent business, while 'Scenario' is
• Payment is often the infrastructure of the bigger picture, as the
'Checkout'
• Payment is highly policy/regulation dependent in China, so 'riskful'
• The Internet (+payment) world is composed of US, China, and 'else' (if
any)
- structure
- style

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Historical perspective and outside in view
Calvin Chao Sheng
Senior Product Director
Qinqin Tech

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Discussion Agenda
Opening remarks
Panel discussion

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Octopus Journey and outlook for the road ahead
Sammy Kam
Technical Director
Octopus Cards Limited

Supermarket
Bus
Train
Ferry
Personal Care
Food & Beverage
Convenience Store
Widely accepted in Mass Transportation and Retail Sectors
Indispensable in Hong Kong everyday life
• Number of cards in circulation: 36M
• Number of acceptance points: over 110,000
• Daily transaction count: over 15M

Penetrations in Wet Markets

> 60% Octopus Payment Value Contributed by Retail
1997
TRANSPORTATION
2021
RETAIL
DOMINANT

Octopus on Apple Pay, Samsung Pay and Huawei Pay

4 Million Octopus App Downloads

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Octopus Journey and outlook for the road ahead
Sammy Kam
Technical Director
Octopus Cards Limited

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Discussion Agenda
Opening remarks
Panel discussion

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Exploring the implications of the Digital Yuan
Meng Liu
Analyst,
Forrester

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© Forrester Research, Inc. All rights reserved. Early research stage
Advanced research stage
Created prototypes
Launched
Source: Forrester Research
Global CBDC overview by development timeline

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© Forrester Research, Inc. All rights reserved.
The digital yuan’s
two-tier model
Source: Forrester Report: Q&A: Decoding The Digital Yuan

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Exploring the implications of the Digital Yuan
Meng Liu
Analyst,
Forrester
Download the report:
https://forr.com/3k4wlGc

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Discussion Agenda
Opening remarks
Panel discussion

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Time to talk

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Panel Discussion

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Poll 1 – Digital Yuan
How beneficial will the Digital Yuan be for insurers?
Response options
1. Very
2. A little
3. No difference

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Panel Discussion

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Poll 2 – Further info?
Q. If you would like to hear more from any of today’s participants please indicate here:
Response options
a) Kapronasia
b) Qinqin Tech
c) Octopus
d) Forrester
e) FTAHK
f) The Digital Insurer

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Discussion Agenda
Opening remarks
Panel discussion

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INSURTECH
DIRECTORY

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INSURTECH
DIRECTORY

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Poll 3 - Do you want to volunteer?
Would you like to volunteer to help to analyse InsurTechs
and improve InsurTech maps?
Response options
1. Yes, I’m interested
2. Possibly, please send me more information
3. Not at the moment

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Feedback please!
Three ways
▪ At end of webinar using survey
▪ When you receive the recording link
▪ To TDI individually

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Contact Details
TDI Academy – learning for the digital age
Simon Phipps simon.phipps@the-digital-insurer.com
Hugh Terry hugh.terry@the-digital-insurer.com
Lapman Lee lapman@lapmanlee.com
Zennon Kapron zennon.kapron@kapronasia.com
Calvin Chao Sheng calvinsh@gmail.com
Meng Liu mliu@forrester.com
Sammy Kam sammykam@octopus.com.hk

Thanks for your time!
(feedback please)
Cashless payments – Insights
from china and what the future
holds for insurers
16th September 2021

Webinar:Cashless Payments – Insights from China and What the Future Holds for Insurers

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Webinar:Cashless Payments – Insights from China and What the Future Holds for Insurers