On December 17, the Regulations on the Supervision and Administration of Non-bank Payment Institutions (hereinafter referred to as the "Regulations") were officially promulgated and will come into force on May 1, 2024.
The Regulations consist of 6 chapters and 60 articles, focusing on four aspects: (1) to clarify the definition and establishment license of non-bank payment institutions, (2) to improve the rules for payment business, (3) to protect the legitimate rights and interests of users, and (4) to clarify regulatory responsibilities and legal responsibilities.
At present, the annual transaction volume of payment institutions exceeds 1 trillion yuan and the amount is nearly 400 trillion yuan, accounting for about 8 percent and 1 percent of the total electronic payment business in the country, respectively, with an average daily reserve balance of more than 2 trillion yuan, serving more than 1 billion individuals and tens of millions of merchants. The "Regulations" will be effective in regulatory practice to the administrative regulations, including Alipay, Tenpay and other third-party payment institutions, UnionPay, NetUnion and other clearing institutions for the first time said that the "Regulations" have built the basic framework and main content of the supervision of non-bank payment business, will further promote the comprehensive and scientific supervision of non-bank payment services, and is conducive to the standardized and orderly development of the payment industry.
Alipay: The Regulations lay the foundation for healthy competition and standardized and healthy development for the future development of payment institutions
The relevant person in charge of Alipay said: "The implementation of the "Regulations" has laid the foundation for healthy competition and standardized and healthy development for the future development of payment institutions. The regulations further strengthen the supervision of the whole chain and the whole cycle of payment institutions, which is conducive to preventing risks in the payment industry. At the same time, under the role of regulation, the payment industry will usher in further standardized and orderly development, which is also conducive to the long-term development of the real industry. ”
Consumer protection is also a key area of concern in the "Regulations", Alipay said that it will further strengthen the protection of the rights and interests of financial consumers, adhere to the financial consumer protection into corporate governance, corporate culture and business strategy in the overall planning, and solidly improve the level of financial consumer protection.
Tenpay: It is conducive to strengthening industry supervision and improving regulatory efficiency
According to Tenpay, the promulgation of the "Regulations" on the one hand has improved the legal level of supervision of payment institutions, from the original departmental rules to administrative regulations, marking the fundamental regulations of the payment industry, which is conducive to strengthening industry supervision, improving regulatory efficiency and establishing regulatory authority, and on the other hand, it conforms to the development and change trend of the payment service market, lays a solid foundation for standardizing the compliance operation of payment institutions, and points out the way for the high-quality development of payment services.
Tenpay said that under the guidance of the financial management department, it adheres to the purpose of small amount and convenience for the people, focuses on its main business, improves services, better meets the payment and settlement needs of users, continuously improves the quality and efficiency of serving the real economy, and injects more value and vitality into the high-quality development of the economy and society.
Payment and Clearing Association: Strengthen the implementation of the self-discipline system and promote the high-quality development of non-bank payment services
According to the Payment and Clearing Association, the Regulations are the first administrative regulations for the supervision of non-bank payment institutions in mainland China. The "Regulations" have built the basic framework and main content of the supervision of non-bank payment business, and will further promote the comprehensive and scientific supervision of non-bank payment services, so as to provide an important legal guarantee for the industry to effectively prevent and resolve risks, effectively serve the real economy, and form a high-quality development pattern.
As an industry self-regulatory organization, the Payment and Clearing Association said that it will play an active role under the guidance of the central bank, organize all parties in the industry to seriously study and Xi implement the "Regulations" through media documents and advocacy, carry out policy interpretation and publicity by holding training courses and symposiums, further strengthen the implementation of the "Regulations" and feedback on problems, and provide support for the decision-making of the People's Bank of China; further adjust and improve the self-discipline norms of the payment institution industry, strengthen the implementation of the self-discipline system, and promote the high-quality development of the payment and clearing industry.
UnionPay: It will strengthen cooperation with all parties in the industry, including non-bank payment institutions, in accordance with laws and regulations
China UnionPay said that the "Regulations" clarify the business boundaries of non-bank payment institutions, and make it clear that non-bank payment institutions shall not directly or disguised clearing business, and the cross-institutional payment business initiated shall be handled by the corresponding legally qualified clearing institutions, and shall submit true, accurate and complete transaction information to the clearing institutions to ensure the integrity, consistency, traceability and non-tampering of electronic payment instructions in the whole process. It will help promote the return of the payment business to the four-party model centered on clearing institutions, ensure the security and transparency of transaction funds and information, promote the fair participation of all parties in the industry in market competition, and promote the sustainable and healthy development of the payment service market.
As a bank card clearing institution and financial infrastructure, UnionPay said that it will strengthen cooperation with all parties in the industry, including non-bank payment institutions, in accordance with laws and regulations, maintain integrity and innovation, conduct business in compliance with regulations, continue to improve service quality and efficiency, better meet the diversified payment needs of the people and the real economy, jointly promote the high-quality development of the payment industry in mainland China, and help build a modern financial system with Chinese characteristics.
Networking: Fully implement the requirements of the "Regulations" and strictly carry out the management of member institutions
According to the NetUnion Clearing Company, in order to standardize the order of the payment market and build a healthy ecology of the industry, the "Regulations" have carried out full-chain and full-cycle management of non-bank payment institutions, clarified the complete regulatory framework for payment business, and helped to further improve the wide-coverage, safe and efficient payment and clearing system, and also provided a strong institutional foundation and important compliance for the Netlink Clearing Company to comprehensively do a good job in payment and clearing.
The company said that it will focus on its main responsibilities and main business, continue to strengthen compliance awareness, fully implement the requirements of the "Regulations", strictly carry out the management of member institutions, effectively prevent business risks, continuously optimize the level of payment and clearing services, help the high-quality development of the payment industry, and provide strong support for the construction of a financial power.
Qiandaibao (Meituan Pay): Adhere to the bottom line of compliance operation and actively maintain the order of fair competition in the payment market
As a payment institution under Meituan, Qian Daibao said that in the next step, it will conscientiously implement the "Regulations", take the "Regulations" as the fundamental guidance and basis for the company's business development, consistently adhere to the purpose of small amounts and convenience for the people, continue to improve the quality and efficiency of payment services, and continue to explore safer, faster, more stable and more inclusive payment services, so as to contribute to the development of the real economy and the people's livelihood. At the same time, we will adhere to the bottom line of compliance operation, actively maintain the order of fair competition in the payment market, and work with all parties in the industry to contribute to the high-quality development of the payment industry and better meet the needs of the real economy.
Hezhong Yibao (Douyin Pay): Carry out business in accordance with laws and regulations
Wuhan Hezhong Yibao Technology Co., Ltd. said that it will conscientiously study Xi the content of the "Regulations", deeply understand the spirit of the "Regulations", consciously abide by the requirements of the "Regulations", adhere to the purpose of small amounts and convenience for the people, improve the ability to serve the real economy and small and micro enterprises, focus on the main business, strengthen product innovation, and better meet the payment and settlement needs of users and merchants of Douyin Group. It will strengthen the awareness and ability of legal compliance and prudent operation, comply with regulatory requirements such as institutional management, reserve management, business management, risk monitoring and prevention, ensure the security of payment transaction data and funds, and effectively safeguard the legitimate rights and interests of financial consumers. It will assume the main responsibility for the prevention and control of fraud and anti-gambling risks, and strictly prevent payment platforms from being used to engage in illegal and criminal activities. It will uphold the principles of win-win cooperation, inclusiveness and openness, strengthen cooperation with banking financial institutions, clearing institutions and other non-bank payment institutions to promote mutual benefit and win-win results and healthy competition in the industry.
PayPal Pay: Strengthen the confidence to serve the Chinese market for a long time
As a wholly-owned subsidiary of PayPal in China, PayPal Pay (Beijing) Co., Ltd. said that the promulgation of the Regulations has strengthened its confidence in serving the Chinese market for a long time, giving full play to PayPal's global payment network, and working with all parties in the industry under the supervision and guidance of the People's Bank of China to serve the majority of small and medium-sized enterprises to go overseas, improve the efficiency of cross-border financing, and make due contributions to the high-quality development of cross-border trade.
Source: The Paper