UPDATE: After a brief suspension of service for several hours on Friday afternoon, Taiwan's online marketplaces restored the JKOpay payment option in the evening, reported CNA. Convenience store chains FamilyMart, 7-Eleven, and Hi-Life report that the payment service is operating normally.
TAIPEI (Taiwan News) — JKOPay mobile payment service is facing public scrutiny after its parent company, Jiekou Financial Technology, became involved in a civil litigation case over NT$3.6 billion (US$123.2 million) in equity.
Amid concern over its parent company’s financial stability, the management of JKOpay held a press conference Friday to tell users of the payment service that their funds were secure. Despite assurances of financial solvency, multiple online marketplaces and retailers removed JKOpay as a payment option on Friday, reported CNA.
Three major online marketplaces including Momo, PCHome, and Shopee had removed JKOpay as a payment option by the afternoon. Several smaller companies have also followed suit.
On Thursday, Taipei District Court ruled in favor of the Taishan financial group in their lawsuit against Jiekou Financial Technology, reported UDN. The Taishan group disputed the value of a 2023 equity purchase of 40.39% of Jiekou’s shares.
The management of Taishan financial group, which took the reins after the acquisition, was suspicious of Jiekou’s equity status and disputed their return on investment. Taipei District Court ordered Jiekou to return the investment funds to Taishan, valued at NT$3.6 billion.
JKOpay has an estimated 6.5 million users and a sizable market share of the mobile payment services in Taiwan.
Following the court’s ruling against Jiekou Financial Technology, Taiwan’s Financial Supervisory Commission issued a statement to reassure the public. It said the funds in users’ accounts will not be affected, as funds are held in full trust by a third-party financial institution, which is supervised by the commission, reported UDN.
