State-run Chunghwa Post Co (中華郵政) yesterday teamed up with Visa International to launch its first debit card, available to its 20 million account holders. Chunghwa is the first post office in the Asia-Pacific region to offer the service.
“We hope every one of our account holders above the age of 18 will apply for this debit card to help manage their finances while enjoying shopping,” company president Hu Sheue-yun (胡雪雲) said at a launch ceremony yesterday.
The “buy now, pay now” card will not allow cardholders to overspend at Visa International’s global outlets. The card will also function as an ATM card at 1.4 million Visa ATMs worldwide and ATMs at the post office’s 1,321 outlets, Hu said.
PHOTO: WANG MIN-WEI, TAIPEI TIMES
Expressing confidence that the card would be popular, Hu said Chunghwa Post is the nation’s largest financial institution, with NT$4.5 trillion (US$139.8 million) in deposits since issuing more than 12 million ATM cards.
To attract new cardholders and compete with credit-card issuers, the postal company will offer a series of benefits including cash rebates and discounts at participating restaurants, retailers, hotels and airlines, in addition to a cash lotto worth up to NT$10,000.
Marco Ma (麻少華), Visa International’s Taiwan manager, yesterday said debit cards were gaining popularity at home and abroad in light of defaults on credit and cash cards since 2005.
“Once users are accustomed to the [debit] card spending model, many may stick with it,” Ma said on the sidelines of the ceremony.
As of March, the credit-card issuer had issued 1.7 billion cards worldwide, nearly 54 percent of which have debit functions, he said.
Visa’s debit cardholders spend an average NT$4,000 to NT$5,000 per month per person, compared with an average of NT$3,000 for credit cardholders, he said.
Separately, Teng Tien-lai (鄧添來), director-general of the Ministry of Transportation and Communications’ department of post & telecommunications, assured the post office’s depositors that the firm’s NT$220 billion loan to the banking consortium of Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) would be risk free. The consortium will shoulder the default risk, he said.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to