The electronic payment processing institutions act will not only offer the public safe and convenient methods of payment but also assist enterprises to find new business opportunities as well as create a favorable environment for youth to start innovative businesses, Premier Mao Chi-kuo stated at today's Cabinet meeting.
The premier made these remarks after listening to the Financial Supervisory Commission's (FSC) report on the formulation and expected benefits of the act. He noted that the act will bring enormous benefits for the development of Taiwan's electronic commerce (e-commerce) and consumer rights protection. He also recognized the FSC's efforts and various ministries' cooperation on this case.
"The act will build a very important platform for Taiwan's e-commerce, and its approval is a significant milestone for Taiwan's e-commerce development," Mao said. He also expressed his appreciation for Legislative Yuan President Wang Jin-pyng's support, which contributed to the act's smooth passage by the Legislature.
In order to facilitate the act's implementation after the legislative process is completed, Premier Mao asked the FSC to gather relevant agencies and enterprise representatives as soon as possible to discuss the 15 authority regulations related to the act. It is hoped that relevant supplementary legislation and measures will be finished within the first three months after the act is promulgated.
Mao also urged the FSC to keep on following the international trend of developing similar new types of payment services and deliberate the opening of services in a timely fashion so that the electronic payment processing institutions can develop soundly.
"Third-party payment platforms are vital to business-to-consumer and consumer-to-consumer development," Mao said. "They not only enable Internet users to open online stores but also bolster the growth of mobile business." E-commerce is projected to account for about 50 percent of global business activities by 2050. As such, Taiwan must strive to catch up, as it has somewhat lagged behind in such development, the premier stated.
To spur the development of Taiwan's e-commerce markets, the government is preparing to amend the Company Act to relax or create regulations governing relevant corporations' stock rights, such as by adding regulations concerning closed corporations' shareholding. These changes would better suit e-commerce's dynamic and flexible operation as well as make it easier for startups or small companies to raise capital, Premier Mao indicated. He directed the Ministry of Economic Affairs to expedite this reform.
With the act implemented, the scale of the e-commerce market is expected to expand by NT$120 billion to NT$200 billion (US$3.93 billion to US$6.56 billion) this year over its NT$880 billion (US$28.85 billion) total in 2014, making e-commerce a trillion-dollar industry, FSC officials said.
About 100,000 individual sellers and online stores in Taiwan are conducting business through e-commerce, and the number is projected to grow by 10 to 20 percent this year. As of November 2014, Taiwan had 1,526 third-party payment service providers, according to the FSC.