Visa has extended its Verified by Visa cardholder authentication service for Internet payment transactions to Taiwan.
Chinatrust Commercial Bank and Taishin International Bank are scheduled to roll out the VbV service to cardholders and merchants by December this year. National Credit Card Centre (NCCC) will have systems ready by September, with the service available to merchants by April 2003.
Verified by Visa allows participating card-issuing banks to validate a cardholder’s identity using passwords, digital certificates or biometrics during the online checkout process. Verification is conducted using a separate window from the Visa card issuer, denying merchants access to the cardholder’s password.
Taiwan’s online shopping market has grown dramatically, accounting for NT$9 billion in total retail sales volume over the past year, according to statistics reported by the Ministry of Economic Affairs in Taiwan. By 2004, the e-commerce market is estimated to reach NT$37.8 billion.
According to Michael Chang, senior vice president, Chinatrust Commercial Bank, more than 1000 Visa cardholders and ten merchants are currently participating in the bank's Verified by Visa programme. Chang expects these numbers to increase significantly before the end of the year.