The Cabinet has approved a draft law governing third-party payment services such as the US-based PayPal. Premier Jiang Yi-huah says the law will help boost the development of e-commerce and protect the rights of local consumers.
According to the draft bill, online payment service providers will be allowed to receive and make payments on behalf of clients, provide virtual accounts where customers can store funds, and transfer funds electronically.
The bill sets the minimum capital for third-party payment providers at NT$300 million (about US$10 million). The maximum value of funds stored and transferred per transaction is capped at NT$30,000 (US$1,000).
Financial Supervisory Commission Chairman Tseng Ming-chung said after the legislature approves the law, five to ten domestic companies will apply to launch online payment services. He said online payment service providers from China will also be allowed to operate in Taiwan if they obtain permits from local authorities.