Difference Between Payment From Third Party and Electronics

The payment and collection via mobile becomes prevalent and popular around the world. The payment via cash is substituted by the mobile gradually. The common payment apps in Taiwan are Apple Pay, Line Pay, and JKOPay. Besides, payment mobile is also included third-party payment and electronic payment. Although these functions are all counted as mobile payment, the nature and scope of business is totally different.

In regards to the third-party payment, due to the insecurity occurred easily between buying and selling mutual parties, there would be a trustworthy third party to be the agent. Usually, the buyer proceeded the payment to the agent and the seller would send over the product to the buyer upon receival of payment from the agent. The above-mentioned transaction is affiliated as physical transaction collected by the agent. The major difference between third party and electronic payment is that the electronic payment is included collection of top-up, transfer ,exchanges in small denomination, and other payment flow activities, apart from collection and payment. So, if a company intends to run electronic payment business in Taiwan, the related licenses shall be approved and obtained from Taiwan Financial Supervisory Committee as well as the minimum amount of capital shall be not less than NTD500,000,000. In contrast, there is no any approval and license required for the operation of third-party payment.

Despite of the exemption to obtain the related licenses for third-party payment, the anti-money laundering policy shall still be followed for the third-party payment service industry as well as establish internal control and verification system, including countering the financing of terrorism, attending anti-money laundering training program and updating the risk evaluation report regularly. Both of the third-party payment and electronic payment needs to comply with anti-money laundering policy and open a special banking account for collection of cash.

Currently, there are more than 4 thousands third-party payment service companies in Taiwan, but the electronic payment service companies are not more than 5 companies solely, such as O’Pay Electronic Payment Co., Ltd., Gama Pay Electronic Co., Ltd., ezPay Co., Ltd., PChome Interpay Inc., Taiwan Electronic Payment Co., Ltd. Other electronic payment entities are banks to operate concurrently. Owing to electronic payment being a type of novel industry, the related electronic payment laws have been under construction. It is expected that more and more electronic payment companies appear on the market and the structure will become much complete.