Taiwanese Bank Gets Approval for NFC-Enabled Credit Cards; Okay for Other Banks Expected
Taiwanese banking regulators, as expected, have approved the first bank to issue mobile credit cards that could be downloaded over the air to SIM cards.
The Financial Supervisory Commission today approved Cathay United Bank’s application to introduce NFC-enabled mobile payment on SIM cards for use with the trusted service management service of Taiwan’s largest mobile operator, Chunghwa Telecom. The initial approval is only for a six-month trial with up to 1,000 employees of the bank and telco. But the service could be expanded to regular customers after that, provided there are no significant security problems.
Approvals for three other banks, Chinatrust Commercial Bank, Taishin International Bank and E.Sun Commercial Bank are expected later this month and all four banks are expected to announce plans for NFC service with Chunghwa Telecom in late May.
The trials, expected to start with either Chinatrust or Cathay United, could begin in June and would involve credit applications supporting MasterCard PayPass. Chinatrust and Chunghwa Telecom this week announced the launch of co-branded physical credit card. The first pilot is reportedly expected to use the NFC-enabled HTC One, Sony Xperia TX and Samsung Galaxy S III.