The Regulations on the Supervision and Administration of Non-bank Payment Institutions were officially promulgated on the 17th, with a total of 6 chapters and 60 articles, further bringing non-bank payment institutions and their business activities into the track of rule of law for supervision.
The Regulations will come into force on 1 May 2024. The key provisions are as follows↓↓↓
Clarify the definition and establishment license of non-bank payment institutions
- A non-bank payment institution is defined as a company, other than a banking financial institution, that transfers monetary funds based on an electronic payment instruction submitted by a user.
- The establishment of non-bank payment institutions shall be approved by the People's Bank of China and a payment business license shall be obtained. The word "payment" shall be indicated in the name of the non-bank payment institution. Clarify the conditions for establishment and strictly control the entry gates.
- Non-bank payment institutions shall have the purpose of providing small-amount and convenient payment services, and shall not engage in other businesses that require approval in accordance with law without approval, and shall not engage in or covertly engage in clearing business.
Improve payment business rules
- To meet the needs of payment business development, the payment business is divided into two categories: stored value account operation and payment transaction processing, and the People's Bank of China is authorized to formulate specific rules.
- Clarify the requirements for the management of payment business, and stipulate that non-bank payment institutions shall improve business management and other systems, and have business systems, facilities and technologies that meet the requirements, so as to ensure the continuity, security and traceability of payment business.
- Clarify the management regulations on payment accounts, reserves, payment instructions, etc., require payment accounts to be opened in the user's real name, and non-bank payment institutions shall not embezzle, occupy or borrow reserves, and shall not forge or alter payment instructions, so as to prevent risks in the non-bank payment industry.
Protect the legitimate rights and interests of users
The Regulations stipulate that when a non-bank payment institution signs a payment service agreement with a user, the terms of which shall be drafted in accordance with the principle of fairness.
Non-bank payment institutions shall ensure the security of users' funds and information, and shall not entrust the handling of relevant core business and technical services to third parties; properly preserve user information and transaction records, establish an effective due diligence system, strengthen risk management, and take effective measures to ensure the security of payment accounts to prevent payment accounts from being used for illegal fundraising, telecommunications network fraud, money laundering, gambling and other illegal and criminal activities.
Clarify regulatory responsibilities and legal responsibilities
It stipulates that the supervision and management of non-bank payment institutions shall implement the Party and state's line, principles, policies, and decision-making arrangements, focus on serving the real economy, coordinate development and security, and maintain the order of fair competition.
Clarify the People's Bank of China's supervisory responsibilities, regulatory measures and risk disposal measures, etc., and local people's governments cooperate with the People's Bank of China to do a good job in risk handling. The Regulations also stipulate legal liability for violations.
WeChat, Alipay, Douyin, Meituan, etc
Speak up collectively
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Alipay:
The Regulations lay the foundation for the standardized and healthy development of payment institutions in the future
Consumer protection is an area of focus under the Regulations. Feng Qiao, deputy general manager of Alipay, said that Alipay will further strengthen the protection of the rights and interests of financial consumers, insist on incorporating financial consumer protection into corporate governance, corporate culture and business strategy, and solidly improve the level of financial consumer protection.
The first is to optimize product design, and integrate consumers' right to know, right to choose and sense of security into product design; second, in terms of financial education and publicity, deeply cultivate innovative consumer propaganda and education, make full use of online advantages, and create a characteristic brand of inclusive propaganda and education; Early warning and assessment, earnestly fulfill the responsibility of financial consumer entities to protect them, and safeguard the legitimate rights and interests of consumers.
Feng Qiao believes that the implementation of the "Regulations" has laid the foundation for the future development of payment institutions for healthy competition and standardized and healthy development. 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.
WeChat Pay (Tenpay):
The Regulations point the way for the high-quality development of payment services
Zheng Haojian, general manager of Tenpay, said that 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;
Zheng Haojian said that in the future, Tenpay will further deeply understand the important expositions and decision-making arrangements of the Party Central Committee on financial work, firmly grasp the political and people's nature of financial work, and under the guidance of the financial management department, adhere to the purpose of small amount and convenience for the people, focus on the main business, improve services, better meet the payment and settlement needs of users, continuously improve the quality and efficiency of serving the real economy, and inject more value and vitality into the high-quality development of the economy and society.
Douyin (Hezhong Yibao):
The "Regulations" empower and escort the high-quality development of the payment industry
Hezhong Yibao is a payment institution under Douyin Group. The relevant person in charge of Hezhong Yibao said that it can be expected that the "Regulations" will strengthen the supervision of the whole chain and the whole cycle of the non-bank payment industry, which is conducive to giving full play to the role of the law in guaranteeing the fundamentals, stabilizing expectations and benefiting the long-term of the industry, and empowering and escorting the high-quality development of the payment industry.
The above-mentioned person in charge said that he will adhere to the purpose of small amount 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. At the same time, it strengthens the awareness and ability of legal compliance and prudent operation, complies with regulatory requirements such as institutional management, reserve management, business management, risk monitoring and prevention, ensures the security of payment transaction data and funds, and effectively protects the legitimate rights and interests of financial consumers. It will also 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.
Meituan (Money Bag):
The payments industry will evolve in a healthier, more compliant, and more sustainable direction
Qian Daibao is a payment institution under Meituan. Liu Xiaodong, general manager of Qian Daibao, said that the official promulgation and implementation of the "Regulations" is conducive to improving market expectations, enhancing development momentum, and the payment industry will develop in a healthier, more compliant and more sustainable direction.
Liu Xiaodong believes that the "Regulations" have built a perfect market-oriented mechanism from the aspects of access and exit, business rules, etc., improved the fairness and transparency of the market, maintained the order of fair competition, and promoted the healthy development of healthy competition and standardization in the industry.
He said that in the next step, Qian Daibao will consistently adhere to the purpose of small amount 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 management, 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.
PayPal（贝宝支付）：
Help the industry provide more secure and reliable payment services
PayPal Pay is a wholly owned subsidiary of PayPal in China. "PayPal Pay has strengthened its confidence in serving the Chinese market for a long time, giving full play to PayPal's global payment network, working with all parties in the industry 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." Qiu Han, CEO of PayPal Pay (Beijing) Co., Ltd., said.
Strict access to payment institutions is one of the important measures to ensure the development of the payment industry. In Qiu Han's view, the "Regulations" further improve and optimize the conditions and standards for the access of payment institutions, making them more scientific and standardized. This measure will help improve the strength and service quality of the entire industry, and provide more secure and reliable payment services for users and merchants.
ePay:
It is conducive to promoting fair competition in the payment industry
The relevant person in charge of ePay said that the "Regulations" firstly complete the legal system on non-bank payment institutions in the mainland legal system, solve the problem of low legal level of supervision of non-bank payment institutions, and help improve the efficiency of supervision; second, the "Regulations" reclassify the business types of non-bank payment institutions according to "business substance", which reflects the concept of functional supervision and is conducive to improving the professionalism and fairness of supervision; third, the "Regulations" Fourth, the "Regulations" implement the principle of "two unwavering" and treat all types of payment institutions, regardless of the size of their business, state-owned, private, domestic and foreign capital, which is conducive to promoting fair competition in the payment industry.
The person in charge said that in the next step, ePay will, as always, adhere to the business development concept that compliance is productivity and competitiveness, and help merchants in digital transformation and lead the healthy and sustainable development of the payment industry based on its positioning as a payment expert in the industry.
China UnionPay:
Promote the sustainable and healthy development of the payment service market
Xie Qunsong, executive vice president of 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 indirectly carry out clearing business, and the cross-institutional payment business initiated shall be handled by the clearing institution with corresponding legal qualifications, and the transaction information shall be submitted to the clearing institution in a true, accurate and complete manner, so as 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.
Source: Economic Daily, News Network, WeChat, China Fund News, Fuzhou Daily
Editor: Liu Fangxinlan