China opens its payment market to foreign firms

Updated 2018-03-22 09:30:01

China's central bank said on Wednesday that more foreign-funded institutions are welcome to enter the payment market to create a more competitive sector.

The People's Bank of China on Monday eased restrictions for these foreign-funded institutions to invest in payment service providers, according to a notice.

The move will grant full national treatment on the foreign institutions. China aims to create an even playing field for both domestic and foreign capital by unifying the access standards and regulatory requirements for market access and entry.

Overseas institutions which intend to offer domestic and cross-border transaction services for subjects within the territory of the country must have corresponding qualifications and a relevant payment business license, the notice said.

They are supposed to set up a "safe, standardized and independent" business system and disaster preparedness system in China.

The PBOC said foreign companies should store, process and analyze users' personal and financial information in China as long as they are collected and generated within the country.

The foreign-funded payment institutions should also meet the central bank's regulatory requirements for corporate governance, daily operation, risk management, capital treatment and deposit of reserves, the notice added.

Wang Pengbo, an analyst with consulting firm Analysys, said that foreign investment will create a competitive payment industry and boost product innovation.

Zhang Yu, an analyst with iResearch Consulting, noted that foreign mobile phone makers like Apple Inc and Samsung Electronics with their high number of Chinese users might consider entering the market with their payment services.

In 2010, the PBOC began to issue licenses to Chinese online third-party payment platforms to better regulate and supervise their services which were launched to tap the burgeoning electronic payment business.

From 2013 to 2017, the number of transactions handled by domestic payment institutions increased around nine-fold to 319.3 billion, while the transaction amount surged from 18 trillion yuan (U.S..8 trillion) to 169 trillion yuan.

The transaction number surged by a compound rate of 71 percent while the amount soared 75 percent during the same period, the notice said.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58April 20 2019 09:06:11

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16April 20 2019 09:06:11

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18April 20 2019 09:06:11

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

China World Business Sports Showbiz Audio
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
China World Fun Travel Entertainment Sports
Beijing Shanghai Guangzhou
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords