PBOC to tackle e-payment woes

Staff reporter

The central People's Bank of China says it is committed to enhancing payment convenience for foreigners in mainland China, while also announcing plans for stricter regulation of non-bank payment service providers in the coming year.

Deputy governor Zhang Qingsong said it is prioritizing the issue of payment convenience and has collaborated with departments to establish a dedicated working mechanism to systematically advance solutions such as "using credit cards for large sum transactions," "e-payments for small sums," and "cash fallbacks."

Zhang noted that the inconvenience faced by some foreigners is largely due to differences in payment habits, as individuals from Europe and the United States prefer to use bank cards and cash, whereas mainlanders prefer mobile payment methods such as Alipay and WeChat Pay.

In recent years, international travelers in China have encountered increasing difficulties in making payments, as numerous stores now exclusively accept mobile payments, sidelining credit cards and cash.

Traditionally, foreigners had to establish a Chinese bank account to access the country's mobile payment networks, leading to a significant restriction of the mobile payment system for tourists.

The PBOC will investigate the acceptance of foreign credit cards by merchants; the authorities, including the ministries of commerce and culture and tourism, will collaborate in identifying key business areas such as airports and train stations.

They will guide banks and payment institutions to expedite the facilitation of foreign card acceptance for key merchants.

Furthermore, Hongkongers traveling in the mainland also encounter challenges in utilizing mobile payment applications, despite the widespread popularity of Alipay and WeChat Pay in Hong Kong.

The mainland versions of these e-payment apps mandate real-name registration, and numerous Hong Kong residents encounter challenges in completing mobile payments as using a mainland travel permit for real-name registration proves difficult.

Starting from May, China will implement new measures that require non-bank payment institutions to obtain payment business licenses from the PBOC.

These institutions should focus on offering small-scale and convenient payment services.

China will reduce volatility in the capital market caused by large inflows and outflows, said the country's top financial regulator.

It is necessary to provide long-term capital to enterprises to help them upgrade, said the National Administration of Financial Regulation.