Fri, Sep 08, 2017 - Page 11 News List

FSC to support third-party payments

By Ted Chen  /  Staff reporter

The Financial Supervisory Commission (FSC) yesterday said that it supports regulatory changes that would help promote the proliferation of third-party payments in Taiwan, provided that businesses meet security requirements.

Following continued talks with third-party payment service providers, the commission is in agreement with their recommendations to improve data flow compatibility at payment terminals between different services, as well as enabling payments between face-to-face users, Banking Bureau Deputy Director Wang Li-chun (王立群) told a news conference yesterday.

Users would also be allowed to charge their credit cards to deposit funds to third-party payment services, Wang said.

As fingerprint sensors become more common on smartphones, the commission is considering adding the feature to the payment identification authentication process, freeing banks from having to collect and securely store clients’ fingerprint data, Wang said.

As of the end of July, 29 of the nation’s third-party payment service providers recorded a total of NT$10.7 billion (US$355.9 million) in transactions by about 1.5 million users, commission data showed.

The five agencies that were granted licenses to specialize in processing third-party payments recorded NT$1.5 billion in transactions by 670,000 users, the data showed.

Third-party payment businesses operated by banks accounted for the majority of the transactions, which were mostly cross-border online shopping payments, the commission said.

The five agencies, which focus on local merchants and online-to-offline promotions, have recorded rapid growth in the short time since their services launched, the commission said.

“We are generally open to expanding the scope of payment services. Our position is to let consumers and market forces decide which services they favor,” Wang said.

The commission does not have preset objectives to regulate each company’s transaction fee strategies, provided that consumers’ interests are not harmed, he added.

Meanwhile, banks have been positioning themselves for the payments market, with some providing services from major international technology and credit card brands to address larger existing audiences at the cost of higher fees to partners, while some have been developing home-grown solutions, Wang said.

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