Chinese Gov’t to License Online Payment Services
July 15, 2010
China’s central bank said recently it will allow non-bank payment service providers to offer online payment services. Non-bank payment services such as Alipay and Paypal will be supervised by the People’s Bank of China under the new regulation. The rules come into effect in September, and require third-party payment agencies to apply for a license from the central bank. Licensed providers will be required to submit financial reports and client information to the central bank. Commissions charged for the service are also subject to the bank’s approval. Experts say the move will help protect clients from transaction risks.