Mobile Payment Regulation


"With the explosive growth in mobile payment transactions, the People’s Bank of China (PBOC) has released a series of laws and regulations to regulate the increasing mobile payment market since 2010. These laws and regulations include Measures for the Administration of Payment Services for Non-financial Institutions (2010), Measures for the Administration of Internet Payment Business of Payment Institutions (2012), Measures for the Administration of Anti-money Laundering and Anti-terrorist Financing of Payment Institutions(2012), Measures for the Depository of Customer Provisions for Payment Institutions(2013), and Measures for the Management of Bank Card Collection Business(2013). The government’s stated reason for this decision is to make mobile payments more secure for users and to curb illicit activity over mobile payment networks, as the central bank and government now have the ability to inspect transaction details for all transfers made over mobile payment platforms and can identify and investigate fraudulent or other illegal activities occurring over mobile payment platforms. While the regulations do not offer many hard rules in place, the PBOC is mandating that banks and payment institutions begin to self-regulate, and is providing them with guidelines on how to achieve those security objectives. It has also asked an industry group to gather members and experts to investigate how businesses using QR codes can better improve their security. The PBOC hopes to see banks and payment processors adopt security measures such as tokenization, expiration dates, and other anti-counterfeit measures, such as the use of encryption, frequent updates, risk monitoring, and security software. "




People's Bank of China (PBOC)


Digital Government


E-ServiceRegulationRegulatory Sandbox