Already becoming somewhat commonplace in developed nations like Japan and Singapore, mobile credit payment services are finally making their way to Taiwan. On Jan. 15, the Financial Supervisory Commission (FSC) passed regulations concerning the safety and management of mobile credit cards, a service that financial institutions in Taiwan will soon be offering. In the future, you will be able to use credit cards stored on your cellphone to make purchases at various shops, and the purchase amount will not be restricted to the current amount of NT$3,000.
Jean Chiu, a deputy director-general of the commission’s banking bureau, says that five banks, including Chinatrust Commercial Bank, Union Bank of Taiwan, Taishin International Bank, Taipei Fubon International Bank and Cathay United Bank, already offer mobile credit cards, but not for purchases exceeding NT$3,000.
How exactly are mobile credit cards used? Chiu says that in the future people will need to apply for mobile credit cards at their local bank or financial institution, not with telecom operators, which will then provide something similar to a SIM card or SD card. After downloading the necessary app, you will be able to make purchases at stores simply by swiping your phone across a scanner. To ensure safety, however, consumers must enter a password every time they activate the credit card function.
Steven Lin, director of the E-Commerce Business Center’s marketing and sales department at Kainan University, says that smartphones using Near Field Communication (NFC) technology are capable of storing all of your credit cards.
Aside from issuing physical credit cards, banks will also be offering consumers the option of applying for virtual cards, which after authentication, all a person needs to do is run an app on their phone to make a transaction. In order to use mobile credit cards, SIM cards equipped with the single wire protocol (SWP) specifications must be inserted into your NFC-enabled smartphone, while non-NFC cellphones can use SD cards with safety features and NFC technology stored on them.
Lin also says that if the cellphone with more than one credit card or other cards stored on it is lost or stolen, all one has to do is contact the Trusted Service Management Center to report the lost phone, and service to the phone will be deactivated. Reactivating the phone is also just as convenient, just a single phone call away.
(Liberty Times, Translated by Kyle Jeffcoat)