A legislative committee has passed a draft law governing third-party payment services like US-based PayPal. That’s the word from the Financial Supervisory Commission (FSC) on Monday. The new law is expected to boost the development of e-commerce and protect the rights of local consumers.
According to the bill, online payment service providers will be allowed to receive and make payments on behalf of clients, provide virtual accounts through which customers can store funds, and transfer funds electronically. This will make online transactions safer for consumers.
The bill sets the minimum capital for third-party payment providers at NT$100 million (US$3 million), while limiting the maximum value of funds stored and transferred to NT$50,000 (US$1,600) per transaction.
Overseas institutions will need to obtain licenses from Taiwan's authorities before they can provide online payment services in Taiwan. The FSC is predicting that once the law passes, about ten domestic companies will apply to launch online payment services.