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Taiwan to issue third-party payment licenses by August at earliest

Taiwan to issue third-party payment licenses by August at earliest

Taipei, July 27 (CNA) Third-party payment processing services are expected to kick off in Taiwan as soon as August, when the financial regulator of the country is scheduled to issue the first batch of licenses to companies applying for permission to run the business here.
The Financial Supervisory Commission (FSC) Vice Chairman Huang Tien-mu revealed Monday that six companies have submitted applications for the payment processing service, including allPay Third-Party Payment CO.,Ltd , Pay2go Co.,Ltd.and Gash Plus.
The three other applicants are E.Sun Bank, Shin Kong Bank and Ta Chong Bank, all wanting to add the third-party payment processing service to their regular business operations, Huang said.
Taiwan's Legislature passed the Electronic Payment Processing Institutions Act Jan. 16, which provides a legal basis for third-party payments in today's rising network economy.
Under the act, open collection and payment, deposits and remittances will be allowed by approved third-party payment processing companies. The daily maximum limit of both deposits and transactions is set at NT$50,000 (US$1,587).
The act stipulates that electronic payment institutions are required to have paid-in capital of NT$500 million or more, while companies that launch third-party payment collection and transfer businesses will be required to have paid-in capital of NT$100 million.
To prevent payment institutions from reneging on payment duties, the institutions will also be required to put aside money to set up liquidity funds.
According to FSC's schedule, the first license for such a payment processing service will be issued in August. (By Tsai Yi-chu and Elizabeth Hsu)

Updated : 2021-09-27 12:00 GMT+08:00