Chinese Central Bank Calls for Strengthening Regulation of Big Payments Platforms, Legislation for Non-bank Payments Companies

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The People’s Bank of China (PBOC) has flagged more heightened regulation of large-scale digital payments platform and non-bank payments companies.

Zhang Qingsong (张青松), recently appointed PBOC deputy governor, said that the authority would “effectively implement a work plan for strengthening regulation of large-scale payments platform enterprises, and expedite the standardised and healthy development of payments and fintech.”

“[We] will uphold [the principle] of payments operations returning to their origin; standardise payments operations by platform enterprises, accelerate the schedule for the development of legislation for non-bank payments organisations, and consolidate the foundation of regulations and law.”

Zhang made the remarks on 15 September at the 11th China Payments and Settlement Forum (十一届中国支付清算论坛).

According to PBOC data, in 2021 China processed 439.5 billion non-cash payments operations with a total value of 4416 trillion yuan, for a 10.7 fold and a 3.4 fold increase respectively compared to a decade ago.

“We are continually pushing to close the digital divide, encourage market actors to develop payments products that are suitable for the elderly, and protect the safety of the funds of the general public,” Zhang said.

“We have developed an economic and trade network for cross-border payments services, with a bank network and cross-border renminbi payments system that already has expanded to over 180 countries and regions.”