Central bank moves to regulate digital payment

APD NEWS

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he People’s Bank of China has issued a new rule to regulate the bar code payment business for the first time amid the boom of digital payment in China, Yicai.com reported.

The rule makes clear that institutions who offer payment methods based on scanning a bar code with customers’ mobiles, must acquire a licence for digital payment.

Meanwhile, the central bank has ordered payment institutions to use its inter-bank clearing system or go through other qualified clearing agencies to conduct bar code payments related to inter-bank transactions.

Payment institutions are asked to ensure the safety of bar code payment by promoting transaction verification, putting a cap on the transaction amount and applying technologies like payment tokenization.

The new regulation will take effect April 1, 2018.

(ASIA TIMES)