萬國法律事務所

Amendments to the Act Governing Electronic Payment Institutions (Act), proposed by Taiwan’s Financial Supervisory Commission (FSC), are currently pending the notice period, which will expire on 29 September 2019. The following are key points of the proposed amendments:

1. Electronic payment institutions will be permitted to operate affiliated businesses to generate cash flow, such as (i) providing assurances for merchandise or service coupons or tickets and assisting with the issuance, sale, and writing off of such coupons or tickets, (ii) providing bonus points integration and payments for real transactions offset services, in addition to collecting and making payments for real transactions as an agent, accepting funds deposited as stored values, transferring funds between e-payment accounts, and domestic and foreign small exchange. Additionally, the management of legal bases for foreign small-amount exchanges for migrant workers is included in the amendments to the Act.

2. The amendment provides that financial information service businesses can operate inter-institution cash flow services and an inter-institution platform will be established by the Financial Information Service Co., Ltd. (財金資訊股份有限公司), funded jointly by Taiwan's Ministry of Finance, public financial institutions, and private financial institutions. If an electronic payment institution that joins the platform cooperates with a store, other electronic payment institutions may trade with such store, accordingly. Moreover, electronic payment institutions and financial institutions will be permitted to perform liquidation and settlement of funds on this platform.

3. The amendment aims to create a healthy and friendly environment for industrial development through the addition of the following provisions:
(1) The capital of payment institutions will be subject to differential management, and paid-up capital will be governed by the scope of the businesses of the electronic payment institutions in accordance with the inclusion of electronic stored value cards (電子票證) to be covered and regulated by the Act.
(2) The scope of application of payments collected by electronic payment institutions is expanded.
(3) The governing basis for the requirements for the eligibility of and part-time restrictions on the persons in charge of electronic payment institutions, electronic payment account processing procedures for suspected illegal or apparently abnormal transactions, and conditions under which shares may be publicly issued are added.
(4) Penalties for spreading false rumors or using fraudulent techniques to damage the credit of electronic payment institutions is added.

4. To keep the institutions’ electronic payment and electronic stored value cards previously approved by the competent authority in accordance with the present Act operating after this amendment is enacted, a transition and buffer provision is added.

On 27 August 2019, the Banking Bureau of the FSC also invited electronic payment institutions to hold public hearings. At present, electronic payment institutions support the integration of electronic payment and electronic stored value cards. If this amendment passes by the end of this year, a new electronic payment system may be established as early as 2020.