Bank SinoPac has launched mobile phone-based credit and debit cards in Taiwan, making it the first lender in the country to enter the mobile payments market, according to the Taipei Times.

The new service is initially limited to 1,000 customers and enables them to purchase goods and services using their smartphones and tablets.

However the service is unlikely to be a key earnings driver in the short term due to a number of factors, including regulatory constraints on pricing, said the bank’s president Tina Chiang in a media briefing.

At present the Financial Supervisory Commission, a financial regulator, puts a cap on credit card usage via mobile devices at NT$50,000 ($1,665). The cap on using debit cards via mobile devices is NT$10,000.

The regulator also imposes a limit at present of 1,000 customers for banks offering mobile payments services.

However, Bank Sinopac says its research showed nearly two thirds (62 per cent) of its customers are interested in the new service because they might get faster and more convenient banking.

Of note, 38 per cent of respondents expressed concerns over security and 32 per cent worried about overly complicated processes.

The bank’s rivals will not be far behind. Six other local banks are expected to follow suit. Chunghwa Telecom, the country’s largest mobile operator, is partnering with a number of the banks.