EasyCard positioned for 3rd-party payment business
By John Liu, The China PostTAIPEI, Taiwan -- Being the largest electronic stored value issuer in Taiwan, EasyCard Corporation is widely regarded as the ideal company to participate in the third-party payment business, sources said.
August 14, 2013, 12:00 am TWN
The Cabinet has decided to allow non-bank institutions to engage in the third-party online payment business, with the Act Governing Issuance of Electronic Stored Value Cards as the legal basis, as rules governing the third-party payment mechanism have not been established in the Legislature.
Under current regulations, companies that intend to participate in the field may partner with businesses that are eligible to issue electronic stored value, with the latter helping the former to set up an online transaction mechanism.
Alternatively, a third-party payment business may set up a separate company with assets totaling at least NT$300 million. The new company will then apply for permission to participate in the electronic stored value business and then launch it online.
The third-party payment mechanism not only ensures secure transactions, but also provides “electronic wallet” functionality.
EasyCard in the Best Position
EasyCard said that in fact it has already been in the third-party payment business, only without an online presence.
In terms of expanding into this service, EasyCard said that “it has been ready for a long time.” For now, dealing with relevant regulations is the only problem the company has to tackle. Under current regulations, EasyCard would need to set up a new company or to partner with another business.
The Institute for Information Industry forecast that the third-party payment industry will generate more than NT$1 trillion in value in 2015.
EasyCard said that the business “has a huge market.” However, more study and evaluation is needed to determine if the company will be able to take advantage of the business.
Other Players May Join
Under the plan laid out by Ministry of Economic Affairs (MOEA), consumers may wire money into an account under a third-party payment company through their credit cards, debit cards; through purchasing stored value cards; or through purchases at convenience stores. After local stores, shops and businesses agree to accept third-party payments online, the payment can essentially be made with just “one button.”
According to the MOEA study, only PChomePay satisfies the NT$300 million capital asset requirement. However, Allpay, Neweb Technologies, Sun Tech Co. are also interested in participating in the business.
Instruction from the FSC
Local sources said EasyCard is in the best position to engage in the third-party payment business, as it only needs to set up a separate company to apply for permission to conduct the payment business.
EasyCard said it would need instructions from the Financial Supervisory Commission, which said the firm is an electronic stored value issuer, and therefore different than a third-party payment business. The company will need to prepare proposals and make new applications in order to participate in the third-party payment business.