This article is reproduced fromLPCOMMENT"

Following the launch of Qunxin Mobile Digital Technology on December 12th, another TSM provider launched today (December 26th): Taiwan Mobile Payments (TWMP), a joint venture between 12 banks, the United Credit Card Center, the Taiwan Clearing House, the Financial Information Corporation, and EasyCard. With telecommunications, finance, and regulations now in place, the day of swiping your phone and using it everywhere seems imminent.

Introduction: What is TSM (Trusted Service Manager)?

To discuss mobile payments in Taiwan, you must first understand TSM. TSM (Trusted Service Manager) is a type of mobile payment solution. In this model, users must add a secure element chip to their phone, either internally, externally, via a SIM card, or microSD card. This secure element replaces the physical card and stores the card's critical information on the phone. In the SIM card model, while mobile network operators and card issuers share the SIM card as a secure element, each with its own confidentiality requirements, data exchange and integration is handled through an impartial third party: the TSM Trusted Service Manager.

As for other types of mobile payment, you can refer to what I wrote in Mobile King.Illustrated explanation of NFC mobile payment and related ecosystems, and comparison of the differences between TSM and HCE"

With TWMP and Qunxin, two major TSMs, both in place, Taiwan is poised to enter a mobile payments boom.

Currently, there are four TSM operators in Taiwan: United International, Chunghwa Telecom TSM, Qunxin Mobile Digital Technology, and Taiwan Mobile Payment. United International's major shareholders are Kai-Nan University, Oberthur, and Anhou International Financial Consultants. Although it has a capital of NT$4 million and was the first to go into business, it is limited by the fact that it only has one member bank, Commonwealth Bank.And the background is not strong enoughGiven its limited resources and lack of successors, its future is bleak, so we'll leave it alone for now. Chunghwa Telecom's TSM, naturally led by the telecom market leader Chunghwa Telecom, which holds a 30% government stake, aims to spearhead the mobile payments industry (though also to capitalize on the initial gains). It has achieved this interim goal. Given Chunghwa Telecom's size and current exclusive businesses (such as Hami), it's speculated that this TSM unit will likely continue to exist for a while, but ultimately, it will likely face downsizing or integration into Qunxin Mobile Digital Technology or Taiwan Mobile Payment Corporation.

Next up are Taiwan Mobile Payment Corporation and Qunxin Mobile Digital Technology. Clearly, Taiwan Mobile Payment Corporation is primarily a financial services company, while Qunxin Mobile Digital Technology, which recently went public, is a joint venture between the five major telecom operators. For the development of mobile payments in Taiwan, Taiwan Mobile Payment Corporation must rely on the USIM cards and network resources provided by the telecom operators; and Qunxin Mobile Digital Technology, for its part, must also secure the cooperation of the banking industry. Beyond collaboration, these two companies also exist to safeguard their respective interests and positions (one representing the financial sector, the other the telecom sector). As a result, the two companies can be described as both competitive and cooperative (as evidenced by the frequent mention of Qunxin Mobile Digital Technology by the head of Taiwan Mobile Payment Corporation in his speech and the presence of Qunxin Mobile Digital Technology's chairman at the press conference).

The parallel development of Taiwan Mobile Payment Corporation and Qunxin Mobile Digital Technology allows both sides to communicate on the same page and provide mutual oversight. For telecom operators, this is particularly concerning. If they were to form a single company with 32 financial institutions, some strategic decisions would likely fall to the financial sector (after all, banks have more people and more money, so they tend to have a louder voice). Ultimately, the advantages and benefits of mobile payments would be reaped by the financial sector. That's unacceptable! Therefore, the five major telecom operators must join forces to form Qunxin Mobile Digital Technology to counter the massive and influential financial sector. Whether the two companies will ultimately hinder each other's development and hinder the development of mobile payments in Taiwan remains to be seen. At the very least, the successful commercialization of Taiwan Mobile Payment Corporation and Qunxin Mobile Digital Technology marks the start of a comprehensive transition for the banking and telecommunications industries, effectively heralding the official entry of Taiwan into the era of mobile payments.

Qunxin Mobile Digital Technology is launched, please see "The joint venture of the five major telecom companies, Qunxin TSM, launched and went into commercial operation in Q2015 2."

Don’t forget, there is still a big mobile payment demon that has not yet entered Taiwan!

That's Apple Pay, which complies with Taiwanese regulations. When will it be available? Well, maybe before the 2016 elections! (Explosion)