The Cabinet, on its last day before ministers resign en masse, green-lighted Apple Pay and other international mobile payment services’ operations under certain conditions in Taiwan on Wednesday.
In order to promote the use of mobile payment services in Taiwan, Premier Simon Chang stated that the Cabinet’s approval for international services has three conditions attached.
Local “token service providers” (TSPs) are not restricted to providing tokenization services; however, Taiwanese credit card holders must settle accounts in Taiwan for purchases made in local transactions, Chang said.
In order to provide a diverse selection of services for consumers, another condition stipulates that international mobile payment providers should collaborate with Taiwan’s non-credit card payment service companies – for example, debit cards, electronic farecards, and third-party payment services.
The collaboration would allow both international and domestic services to go online in Taiwan. Chang has also requested that the Financial Supervisory Commission (FSC), Taiwan’s top financial regulator, loosen up related laws.
In its last condition, the FSC will also need to negotiate technology collaboration between international payment providers, credit card organizations and local TSP companies to strengthen Taiwan’s footing in the sector.
While reports state that it’s unclear when Apple Pay will arrive in Taiwan despite the Cabinet’s approval, according to Apple Daily, heavyweights in the local banking industry have expressed hopes of collaborating with MasterCard or Visa.
Local companies have yet to discuss token authorization services with the tech giant, though working with international groups that have already received Apple Inc.’s authorization would lead to speedier implementation of the payment services, banks told Apple Daily.
Under these circumstances, services could be up and running as early as the end of the year, they say.
Source: China Post