Small-scale online payment companies will be in trouble

The People's Bank of China recently officially issued a document called "The People's Bank of China Bulletin (2009) 7th", requiring that non-financial institutions engaged in payment liquidation operations be required to register in the relevant registration procedures before July 31. It is understood that the announcement requirements include those engaged in online payments, electronic money distribution and liquidation of non-financial institutions.

Although the central bank has stressed in this announcement that the results of registration are only a reference to the formulation of relevant policies, they should not be considered or construed as administrative licensing decisions made by the People's Bank of China in respect of the payment liquidation business of a particular non-financial institution. But experts say the central bank's request for registration of all non-financial institutions engaged in payment of liquidation is only a matter of investigation. This could be the beginning of the central bank's formal incorporation of third-party payment companies into the regulatory system, which would have a huge impact on the entire Internet payment industry.

San Lixin, a consulting analyst, said that the central bank's request for a third party to pay the business deadline for registration is an explicit regulation of the online payment industry. However, the question of whether the payment licence will be issued immediately after the "mapping", the form in which the licence is issued, what the contents are, and the impact on the industry after the issuance of the licence are still in suspense.

The central bank's documents have also allowed Alipay, the Tenpay, to pay the leaders of these third parties to react at the first time. Tenpay Marketing Director Ma Xiaodong expresses told reporters that Tenpay has long been in accordance with the "Payment liquidation organization management measures," the relevant recommendations of the draft, the establishment of a standardized business process and management processes, the establishment of a special financial cooperation, internal control and risk management team, and in 2006 the first to pass the National Information Security Authority certification.

For the Tenpay and other large third-party payment vendors welcome attitude, industry-related experts think it is normal. In fact, the introduction of central bank policy has little impact on well-known and large third-party payment companies, but the impact on small companies is enormous and far-reaching for the industry as a whole, the expert said. The rules of future management will make specific provisions for registered capital, operation structure, technical system, etc., the threshold of third-party payment companies will be improved, and some small network payment companies will get into trouble.

In 2005, the central bank issued the "Payment Liquidation organization management measures" Draft, 4 years later, the third party to pay the issue of licences and other issues have been inconclusive. Industry insiders said that the mapping registration also indicates that the "Payment liquidation organization management measures" is not far from the formal introduction