Local media reports that the new rule regarding online payments and transactions will be released as early as this week in China.
The new rules to be released include Payment and Liquidation Organization and Management Method, implementation principles and relevant statutes. The former is about key rules in managing e-payment companies and it guarantees the basic rights of each online consumer.
In order to ensure the transaction security, the Method requires strict requirements on e-payment service providers. For example, it says each e-payment company must not have more than 49% of its stake held by a foreign investor, its registered capital must be over CNY100 million and it must consign banks to manage its funds. One of the most prominent features of the Method is to control the risk of online payment by asking payment companies to set up risk management departments and review departments.
In addition, the new Method states that e-payment licenses shall be given to four types of organizations, including bank card organizations like China UnionPay and Visa, invoice based e-payment companies, online payment companies like PayPal and Alipay and other kinds non-banking institutions. However, it does not say how many licenses will be sent issued.
