Far EasTone Telecommunications is to launch a low-cost smartphone featuring NFC and has also announced plans to trial a mobile payments service, according to Focus Taiwan.

The operator, the country’s third-largest, will launch the handset, which is called the Vodafone Smart III, later this month. It was initially launched across Vodafone markets in June. Far EasTone is part of Vodafone’s partner programme.

The Vodafone-developed phone will cost TWD4,990 ($166).

The Taiwanese operator has purchased more than 10,000 of the handsets, according to Far EasTone president Yvonne Li.  She said the NFC models currently on the market are relatively high-end models such as HTC One, Samsung Galaxy S4 and Sony Xperia Z.

Li added that the operator plans to buy a total of 1.7 million to 1.8 million smartphones this year, of which NFC-based models will make up more than 50 per cent of the total.

The operator also announced that it will launch an internal trial of NFC-based mobile payments before the end of this month. The trial will be run in co-operation with Far Eastern International Bank and MasterCard. The aim is for a commercial launch in the first quarter of 2014.

Mobile payments and NFC are starting to hot up in Taiwan. Rival Chunghwa, the country’s largest mobile operator, is set to run a large-scale trial of the technology.