Taiwan’s largest telecom operator Chunghwa Telecom Co. has started a pilot to enable smart phone users to make contactless payments, reports Focus Taiwan.

The first phase of the trial will last six months and involve 500 to 600 mobile services subscribers. These participants will install a customized SIM card in their smart phones to conduct payments with NFC technology.

The trial currently only involves making payments at Taipei’s MRT and some local retail stores that have electronic wallet services. Taiwan’s financial regulator has not yet approved other NFC payment functions, such as credit card payments and pre-paid phone recharges.

Chunghwa Telecom is partnering with three handset makers to introduce them to the Taiwanese market. Although it doesn’t plan on purchasing many NFC-enabled smartphones in the near future, it may purchase a wide variety of phones.

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