In China, weak third-party payment services are gradually losing grounds, while first-class mobile payment providers are advancing in the field. According to Beijing’s The Economic Information Daily (EID), this may be caused by the country’s tough regulations and great effort to keep risks under control.
Currently, there’remore than 200 service providers that offer third-party payment services in China holding licenses issued by the central bank—People’s Bank of China (PBC). According to Fan Shuangwen, head of Payment and Settlement Department at PBC, central bank’s goal has been to improve supervision on third-party payment since 2016.
Based on the draft regulation released by China’s central bank, transactions with third-party payment providers like Alipay could be limited to as little as 1.000 yuan (US $160). The regulations may leave out smaller firms and make people use state-owned bank services.
This means the implementation of these regulations would affect smaller third-party services,and they may need to work under great pressure. They’ll be required to use multiple security measures, which will result in increased operational costs.
South China Morning Post reports that third-party payment services with2 or more security measures that don’t offer verification processes will have a daily 5.000-yuan (US $800) transaction limit per user. Payment services that provide less than 2 security measures will have a daily transaction limit of 1.000 yuan (US $160).
No ceiling limit will be imposed on payment providers that utilize digital certificates or signatures in their security measures. Internet banking transactions won’t be affected at all.
To get easily approved for a secure merchant account to start accepting online payments, you should find a respectable payment processor to turn to. A reliable and experienced merchant account provider can help you with all types of payments, including mobile high risk payments.
To strengthen their supervision in the third-party online payment business, regulators are imposing fines, revoking operation licenses, and establishing a centralized clearing platform aimed at building a safety net that would eliminate the industry risks.As experts note, such tendency will reduce the number of irresponsible service providers,as well as further unite the industry and make it stronger.
Author Bio: Electronic payments expert, Blair Thomas, co-founded eMerchantBroker in 2010. His passions include writing/producing music, and travel. eMerchantBroker is America’s No.1 mobile high risk payments company, serving both traditional and high-risk merchants.