The People’s Bank of China (PBOC) has tightened regulations on non-banking online payment platforms to curb risks such as financial fraud and money laundering.

The new regulations – which will take effect on 1 July 2016 – requires users to open online payment accounts with their real names. It also imposes a cap of 200,000 yuan ($30,910) a year for payments made through such platforms.

The central bank has said that non-banking online payment platforms cannot directly provide financial services such as lending, securities investment and insurance. According to the payment and settlement director at PBOC, Xie Zhong: "The basic function of these platforms is to facilitate the development of e-commerce."

The country’s internet giants, Alibaba and Tencent – which both provide online payment services – have issued statements supporting the new rules set by PBOC, highlighting that this move will ensure the safety of their users’ financial assets.

 

 

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.