TAIPEI (Taiwan News) — Taiwan’s financial market could soon see competition among businesses offering cross-border remittance services for migrant workers, said the country’s financial regulator.
At least five to 10 companies are expected to apply for the right to operate a cross-border money transfer business after the amended Act Governing Electronic Payment Institutions comes into effect in July, according to the Financial Supervisory Commission (FSC).
Taiwan has about 710,000 migrant laborers, including those from Indonesia, Vietnam, the Philippines, and Thailand, per the May statistics from the Ministry of Labor. Due to language barriers and work-related restraints, many foreign workers turn to underground banking for their needs to transfer money home, wrote CNA.
EMO, a fintech startup, and Welldone Company, have been approved to provide such services for the migrant labor community since 2019 in a regulatory sandbox, or trial mechanism. Their overseas remittance services have been well-received among workers because of the reduced transaction fees and faster deposits compared to traditional banks.
The financial regulator said the two companies are likely to be granted a permit for the business after the trial ends on Oct. 29. Meanwhile, up to 10 firms are expected to enter the market when the amended rule takes effect in July.
According to regulations, qualified companies will receive a three-year permit to operate the cross-border remittance business for migrant workers. Each payment must not exceed NT$30,000 (US$1,074), and the cap of the amount for a month and a year is NT$50,000 and NT$400,000, respectively.
