The challenge of almost zero transaction fee is perhaps on the cards for payment solution providers such as Union Pay and Alipay in China, Payment Asia in Hong Kong and Amazon Pay and PayPal the world over. This strategy has yet to be put into practice but it is a strategy that many of the payment solution companies are toying with.
The trend was set in 2003 when Taobao.com debuted charging zero commission from traders that were registered on the auction site. The rest is history as Taobao an arm of Alibaba has gone to become the second largest online e-commerce portal behind Amazon.
The chatter on social media via paymentasia reviews about zero commission charges is bound to reach astronomical levels. The revenue model for such an unprecedented step means the technology company needs enormous capital to sustain it. It is no secret that no sooner one payment portal starts the ball rolling than others will follow suit.
The factor of free shipping is a striking example of reducing transaction costs to the customer. Reducing finance costs is the way forward for payment service providers such as paymentasia to enter newer markets of Indonesia that have just declared their territory is open for online shopping. Myanmar is sure to follow suit allowing a stupendous business opportunity in unexplored markets. Transparency is the key; one golden rule is not to camouflage the transaction cost as the hidden cost.
The travails of Germany's Deutsche Bank that is facing an unprecedented crisis (even to the extent of it staying afloat); the crisis is self-inflicted as is the case with Volkswagen that is facing massive fiscal penalties all over the world for dishonest practices. So what ails Germany's top businesses - a Bank that is too big to fail and automotive company with three of the biggest brands in the world - VW, Audi, Porsche and other noted brands such as Bentley, Bugatti, Lamborghini, Skoda, SEAT, and Ducati - the answer lies in transparency. It does not pay to lie.
Related Source: https://paymentasiareviewshonkong.wordpress.com/2016/10/13/266/
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