China Details Restrictions on Third-Party Online Payment Providers
Jan. 4, 2016
The Chinese Central Bank has provided some clarity on changes to how online payments in the country will be regulated. Starting July 1, 2016, third-party online payment services like Alipay and Tenpay will have to make sure all user accounts bear the real name of the account holder, according to a report in Xinhua, the state-run news agency. The accounts also will be sorted into one of three types based on security requirements. Maximum annual payments from the accounts will then be imposed: an annual limit of 1,000 yuan ($154) in spending from the least secure type of account to 200,000 yuan per year from the most secure ($30,713).
According to the report, the government policy is aimed, in part, at avoiding large deposits in third-party payment accounts, which are beyond the protection of bank deposit insurance “and will leave consumers vulnerable to possible risks.” Payments made through banks are not subject to the new regulation, the central bank said.