Bank SinoPac is first Taiwanese bank offering mobile payments

Initially limited to 1,000 customers, however.

Taiwan-based banking holding company Bank SinoPac recently launched its mobile phone-based credit and debit cards in Taiwan, becoming the first bank to venture into the mobile payments market.

The new service is initially limited to 1,000 customers and enables them to buy goods and services using their smartphones and tablets.

Bank Sinopac said its research showed that 62% of its customers are interested in the new service because they might get faster and more convenient banking. Of total respondents 38% had concerns over security while 32% worried about overly complicated processes.

Six other local banks are expected to follow Bank Sinopac’s lead. Chunghwa Telecom, the country’s largest mobile operator, is partnering with a number of these banks.

The Financial Supervisory Commission, the financial regulator, puts a cap on credit card usage via mobile devices at US$1,665. The cap on using debit cards via mobile devices is US$334.

It also imposes a limit at present of 1,000 customers for banks offering mobile payments services.