Chunghwa aims to be leader in payment services
By John Liu , The China Post
January 14, 2014, 12:03 am TWN
TAIPEI, Taiwan -- Chunghwa Telecom (CHT, 中華電信) is in the planning stages of launching its third-party payment platform “Chunghwa Payment,” the company's ranking officials confirmed yesterday.
The planning is still at a very early stage, and the next step is to submit an application to the Ministry of the Interior for approval, upon which the company will have a clearer schedule for the new venture, the company's officials said.
The company may apply for a third-party payment license in the future, in an effort to become the leader in the payment industry, the company said.
CHT will team up with up to 10 third-party players and financial institutions to form Chunghwa Payment in the first quarter, including PChomePay, National Credit Card Center of R.O.C., Chinatrust and Cathy United Bank.
According to the Institute for Information Industry, Taiwan's e-commerce revenues reached NT$660 billion, and the institute estimated that it would exceed NT$1 trillion in 2015.
Leverage Point to Tap the Market
Revenues from the company's voice related service have been declining. Transportation Minister Yeh Kuang-shih (葉匡時), one of CHT's major shareholders, expressed earlier that he hopes the company will engage in other businesses. The Executive Yuan has been encouraging private businesses' participation in the third-party payment and e-Commerce businesses.
CHT has been in the verification, authorization and collection service. Its subsidiaries HiNet and MOD are also engaged in low-amount payment services. CHT plans to unite e-commerce in its HiNet, MOD and mobile phone sectors.
As CHT already has a large customer base, the company hopes to leverage this advantage to broaden its payment service scope and amount, working with other players to tap this potential market. CHT has more than 10 million online service customers, more than 10 million mobile phone subscribers and nearly 5 million household subscribers.