A bill that provides a legal basis for third-party payments has cleared the legislature. Third-party payments providers such as the hugely popular PayPal are becoming increasingly important in today’s new network economy.
The Electronic Payment Processing Institutions Act was passed on Friday. Under the new act, electronic payment institutions are required to have paid-in capital of NT$500 million (about US$16 million) or more, while companies that launch third-party payment collection and transfer businesses will be required to have paid-in capital of NT$100 million (roughly US$3 million).
To prevent payment institutions from reneging on payment duties, the institutions will also be required to put aside money to set up liquidity funds.
Financial Supervisory Commission chairman Tseng Ming-tsung said recently that after the passing of the act, domestic electronic payment institutions will have more room for development, while the development of domestic e-business will also be boosted.