Chunghwa Telecom (CHT) has selected Gemalto, a digital security company, to secure mobile payment with MasterCard and four banks in Taiwan.
In the roll out of a large-scale Near-Field-Communications (NFC) trial, the telco's 10 million users will be able to make contactless payment at over 200,000 MasterCard PayPass counters located in supermarkets, department stores and a fleet of taxis.
Cathay United Bank, Chinatrust Commercial Bank, E.SUN Commercial Bank and Taishin International Bank will bring significant clout to the pilot, as well as handset makers HTC Corp, Samsung and Sony.
Approved by the Financial Supervisory Commission of Taiwan, Gemalto's UpTeq NFC SIM, a secure software, provides banking-grade security for mobile transactions.
Joseph Kuo, director of value added services at CHT, said the SIM solution has enabled them to achieve "first-to-market advantage" in deploying secure mobile payment.
"It is part of our strategy to 'seed the market' by equipping all of our subscribers with the UpTeq NFC SIM so we are ready for mass deployment of mobile contactless services," he added.
Its tamper-proof secure element will support additional NFC services such as multiple credit and prepaid cards, loyalty cards, coupons and ticketing.
This unique flexibility will also "spur new service providers to onboard the NFC ecosystem to offer a wide array of NFC services such as mass transit, access control and information download from smart posters," said Michael Au, senior vice president of Telecommunications at Gemalto Asia.
Julie Yang, head of Taiwan's Mastercard, said the SIM technology will be a catalyst for new opportunities in innovative secure mobile payments.
"Gemalto's UpTeq NFC SIM solution provides EMV-payment level of protection for mobile contactless transactions and also opens the door to a wealth of innovative NFC services beyond payments for the benefits of the consumers as well as business stakeholders in the value chain," she added.
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