Taiwan Mobile, a GSM mobile phone operator, is outlining plans to launch a subsidiary to manage third-party payment business, authorizing customers to pay bills through mobile devices.
The company has drafted a proposal for the establishment that is to be approved during its annual general shareholders’ meeting scheduled in June 2014.
Taiwan Mobile senior vice president Jeff Ku was quoted by Focus Taiwan as saying, "Third-party payment is considered a strategic deployment, and Taiwan Mobile will certainly participate in it."
The company plans to consolidate its mobile payment services, which work upon scanning QR codes or swiping NFC-enabled devices, into its planned third-party payments unit, added Ku.
Taiwan Mobile anticipates an initial capital requirement of TWD$300m ($9.96m) based on local regulations and is looking to form partnership with local lenders or with other companies to offer third-party payments services.
Taiwan Mobile has launched a pilot program for NFC technology-based wireless payment services earlier in August 2013 in collaboration with Taipei Fubon Bank, under which, users could make payments with a swipe of their NFC-enabled smartphones at about 25,000 retail stores with point-of-sale readers.