Taiwan Mobile has contracted with European vendor Gemalto for the supply of a near field communication (NFC)-based system that will enable it to remotely register, issue, manage and terminate mobile services - including payments - for its customers.
Gemalto says the SIM-based system is designed to remotely manage any type of contactless service within a mobile phone environment, especially payment applications that require high security levels.
The platform will allow Taiwan Mobile to add, remove and manage mobile NFC services - such as contactless payments and pre-paid fare functionality - remotely, says Gemalto.
Jeff Ku, VP, emerging services, Taiwan Mobile, says: "Remote management of contactless services is key. With these enablers subscribers do not have to go to a bank branch or train station to load and update their applications."
The system will let Taiwan Mobile's customers use their handsets to securely pay for goods at the checkout by tapping their phones on specially-equipped terminals. Customers will also be able to top up transport passes and manage coupons.
Gemalto says that the system, which will be commercially rolled out during 2008, will enable banks, transport companies and other service providers to offer their services via mobile phones.
Last year Taiwan Mobile teamed with MasterCard and Taipei Fubon Bank to trial a NFC-based mobile payments system.
Taiwan Mobile selected 100 consumers to test the MasterCard PayPass payment feature embedded on a Nokia 3220 mobile phone. MasterCard later said that over three quarters (75%) of customers that participated in the pilot programme preferred the contactless technology to traditional contact-based cards and made payments more often.