Absolutely. Silicon Valley, I don’t think it would be possible without Taiwan. If you look at all the human capital, and the back and forth. We would like to be part of this as well, just as Taiwan has been part of Silicon Valley in California. It’s all very exciting.

That’s a paradigm. I’m sure you’ll learn lessons from them, they’ll learn lessons from you, and both will be better for it.

It’s not a zero-sum at all.

Absolutely.

They are also quite ambitious, but you are right up there in your ambition. That’s great to see. Competition is great for everyone.

It’s really interesting, and I obviously wish you the best. There are competitors out there as you know. I’m based in Singapore, they have a smart‑based initiative. I don’t know if you, within office under the PM, led by the Foreign Minister. I’m sure you’ve seen their plans.

As a living lab.

I can imagine this would be a fascinating area of law, and frankly, how this as more and more devices are enabled and are recording. You have a smart TV that’s ready for voice activated remote, it might be always on standby, ready to hear what you say, who knows? ...

What’s very interesting as we get into IoT, I don’t know if you saw this news that there’s a case in the United States ‑‑ a murder case ‑‑ where they are seeking to submit Alexa as a witness, the echo machine, because it may have recorded relevant voice, relevant ...

I think we’ve observed that in many cases, the consumer consent, or the user consenting for the data to be used in particular ways, or you just using metadata, so it can’t be ascribed to an individual, are two of the approaches.

Whereas having a dynamic approach, I think we can get a much better resolve for what we want to get from regulatory perspective, and it’s going to be a better experience for consumers and merchants.

It won’t be perfect, it won’t be, but then again, humans definitely are not perfect. We know someone showing up with an ID at a window, there’s an error right there, and it’s probably pretty high, because fake IDs are pretty easy to get.

We think that a better way to secure the system and stop people from fraud, and bad behaviors like funding terrorists. I think Taiwan can really play a leading role through the sandbox approach, and through the Silicon Valley, doing experiments. How do you get the right balance?

We think that there’s an opportunity to have a much more dynamic approach to identifying someone that doesn’t run on one touch point using one ID, but can really, in a dynamic way, to the example I gave earlier and say, "Wait a second. That’s not you. That’s just not ...

What our view is, I would challenge everyone in this room, that if I ask you what says more about your identity, your one physical ID that you could pull out ‑‑ I’m sure you got one ‑‑ or your mobile, where that mobile is, your behavior, what you’re buying.

An area where Taiwan can play a really leading role, there’s a lot of talk around KYC ‑‑ know your customer. Pretty much all regulators around the world, at some point fall back to what is fundamentally like a 19th century technology. Show up at a physical place, show a ...

I agree.

Too much data for humans...

Digital movement between social groups, friends, etc. It can be delivered, in that case, at scale at no cost to the consumer. There are other ways to monetize it later, but again, these are things that we can see as being part of the broadening ecosystem around fintech here in ...

One of our most popular products in the area is a product called Venmo, which last year or the year before was the third most downloaded app in the US. It’s incredibly popular with millennials. I’m sure there are products like this developing here in your country, but it’s something ...

I think, having that dynamic capability is very important, I’d add. There’s also a lot of development in the PDP space where I think that’s an opportunity also, as you think about the sandbox. We see this in the United States certainly.

You need systems that are dynamic enough to say, "Wait a second. RT doesn’t behave this way. That’s not right. I’m going to stop this." It creates some friction, but it’s for a good reason because instead of the normal place where you might pick up your latte or whatever ...

I think, it’s also the whole issue around trust of the data, both your payment credentials. It’s very important. What I would say is it’s also important then to have that artificial intelligence type machine learning where just because you’ve signed in, it’s still might not be you. You can ...

Absolutely.

It’s an area where PayPal can provide expertise. We already have products in development around those types of technologies.

We’re seeing these kinds of technologies really starting to be ready. They’re not in development stage. I think, we’re going to see it more and more. The kinds of things like an Uber experience, you can see in other areas of commerce and, frankly, your life.

Another are voice set activator technologies. You’re seeing this increasingly. With artificial intelligence and ability to understand normal human speech, we now already see this integrated in their own. It’s like Lexus and echo devices in Siri, where you can,"Siri, buy me a coffee," or something. It’ll tell you where ...

Or, a better example is people who are looking at a picture on someone’s Facebook, and they like that vase. They say, "What is that?" They can literally click on the vase and buy it right there out of a photo. These are things that we see opportunities.

It could be your Asia Silicon Valley Development Agency website where there’s a registration capability or whatever it is, and you can click on that. You’ve already had maybe a one‑click sign in where you’re integrated with that, where they can register and pay seamlessly.

We see a lot of opportunity to reduce that friction to put in the background. A lot of other technologies that payments can be integrated in a way that could be more facilitate that development. Good examples would be contextual commerce, where you’re seeing that, people who are in websites.

One of the things that I think people who come to Uber, I’ll use this as an example, that they find really satisfying as a customer is that experience where you order your car, you get in it. You take you ride, you get out, and you don’t stop to ...

That’s a lot of what will help make payments reduce the friction, and make it more seamless. A great example actually is Uber, where we power the payments underneath the Uber experience.

I think, the areas we are thinking about in the PayPal’s sync in terms of fintech development, obviously you know we’ve got the button on websites. Some of the areas that got increasingly involved in are developing the background engine for payments. What we call brain tree product which you ...

...from the rules.

Is the sandbox connected to this, or do you see that as a separate initiative?

It hasn’t developed to understand fintech. It’s like we’re part of it. There is this financial technology experimentation bill in LY they’re looking at.

Interesting. It’s only focused on high tech, or also include biotech research and bio pharma?

Perhaps later we could talk a little bit about there’s a lot more services that are a part of PayPal Inc. that you don’t necessarily think of when you think of PayPal. Maybe it’s something I can get into a little bit as you continue our dialog. I understand fintech ...

I think here in Taiwan we really work with many thousands of merchants, mostly SMEs, to help them export goods and services globally by receiving payments from our platform. We help Taiwanese consumers be able to access goods and services globally, as well, by using their PayPal accounts to pay ...

I’m David Katz from PayPal. We’re a fintech company, arguably the first at scale fintech company.

Yeah.

Thank you very much, minister, for welcoming us. We were a larger group, but we’ve lost a few...