China tightens regulations on mobile payment platforms

Andy Boxall

In App Business

January 5, 2018

The Chinese government is imposing new rules on mobile payment platforms operated by companies including Tencent and Ant Financial. Regulators are introducing ways to bring these platforms more into line with traditional banking practices, and the changes may impact revenue.

One of these regulations, enforced by the People’s Bank of China, will introduce new caps on spending using a QR code. Depending on status, the caps are set at 500 yuan, 1000 yuan, and 5000 yuan.

Additionally, alterations to the way companies store and re-invest reserves may cause these companies to miss out on large sums of money, say analysts speaking to Forbes. Regulators have also changed the way online loans are managed, to avoid inflated interest fees and other problematic lending schemes. The next area the government may investigate relates to the way user data is examined, stored, and used.

In a statement from Ant Financial, given to Forbes, a spokesperson said:

“[We will] collaborate with regulators and industry partners and leverage technological innovation to better cater to the needs of micro and small enterprises and individual consumers.”