Restrictions lifted on e-commerce payments

The Executive Yuan began review of the “Payment Processing Institutions Act” (Special Law for Third-Party E-commerce Payments) prepared by the Financial Supervisory Commission (FSC) Monday. Deregulation proposed in the plan is broader than the Ministry of Economic Affairs version. In addition to allowing Online to Offline (O2O) transactions and multi-currency stored value payments, the restrictions on remittance transfers for non-material transactions have also been lifted. Electronic ticket companies such as EasyCard will now be able to process third-party payments.

A capital threshold of NT$300 million is required for companies wishing to take advantage of this special law with a stored value limit of NT$30,000. The FSC can adjust this limit according to individual circumstances. The balance of the stored value account can be used to purchase low-risk financial instruments such as government bonds with a portion of investment income and yield distributed to the consumer (users).

In addition to electronic payment institutions specializing in online transactions, institutions covered by this special law include banks, Chunghwa Post, and electronic ticket issuing institutions.