First in Taiwan! Overseas Remittance by E-Pay Starts in Q4, Migrant Workers' Service to Follow Next Year

The Financial Supervisory Commission (FSC) announced on the 16th that it has granted E-Pay, an electronic payment institution, the first-ever approval to operate international small-amount remittance services and concurrent remittance services for foreign migrant workers. E-Pay plans to launch the first phase of its service in the fourth quarter of 2024, enabling users to send funds to Vietnam with a single transaction limit of up to NT$50,000. The company also plans to roll out salary remittance services for migrant workers from the Philippines, Indonesia, and Vietnam in the second half of 2025. This marks a significant milestone for Taiwan’s electronic payment ecosystem, officially entering the era of cross-border financial services.

Deputy Director Chang Chia-kuei of the Banking Bureau explained that the approval for E-Pay covers two main areas. The first is the 'international small-amount remittance service,' which has no identity restrictions. Both local residents and foreign nationals legally residing in Taiwan can use the service, provided they complete identity verification under the Electronic Payment Act and open or upgrade to a 'Class Two Electronic Payment Account.' E-Pay plans to initially launch remittances to Vietnam, with operations expected to begin as early as the fourth quarter of this year.

FSC officials noted that due to the cross-border nature of international remittances, identity verification and security measures are particularly stringent. In addition to presenting valid identification documents, users must link two financial payment instruments to verify their identity. Crucially, remittances must be processed through a linked 'deposit account' for authentication and fund deduction. Users who link only a credit card will not be eligible for this service.

In terms of transaction limits, each remittance is capped at the equivalent of NT$50,000, with a monthly cumulative limit of NT$300,000. This limit is consolidated across all transactions, including domestic payments, local transfers, and international remittances conducted within Taiwan.

Deputy Director Chang stated that the launch of this service will provide new residents and international students participating in academic-industry programs with a more convenient, immediate, and low-cost channel for fund transfers, contributing to the realization of inclusive finance.

The second approved service is the 'concurrent remittance service for foreign migrant workers,' which E-Pay plans to launch in the second half of 2025. This service is specifically designed for Indonesian, Filipino, and Vietnamese migrant workers, enabling them to securely and quickly remit their salaries earned in Taiwan back to their home countries.

Compared to standard international remittance services, the KYC (Know Your Customer) verification process for migrant workers is simplified and tailored to their needs. Workers need only present their Alien Resident Certificate and verify their mobile phone number to generate a barcode via the mobile app, which can then be used at designated outlets to complete payment and small remittances. This design significantly lowers the operational barrier, addressing previous challenges such as language barriers and limited working hours that made it difficult for migrant workers to visit physical branches.

Currently, five companies have already been approved to operate remittance services for foreign migrant workers. The FSC hopes that the participation of electronic payment institutions like E-Pay will set a benchmark in corporate governance, regulatory compliance, risk management, and information security, thereby promoting healthy market development. The FSC will continue to urge electronic payment institutions and migrant worker remittance companies to strengthen their information security and risk management capabilities to provide more comprehensive payment services.