It’s about your wallet! What changes have been ushered in by the introduction of the new payment regulations in the billion-dollar market？

　　On the 17th, the Regulation on the Supervision and Administration of Non-bank Payment Institutions was promulgated, which came into effect on May 1, 2024. This is the first administrative regulation in the field of supervision of non-bank payment institutions, and it is also the first administrative regulation in the financial field issued after the Central Financial Work Conference.

　　Non-bank payment institutions are non-bank institutions that are allowed to handle online payment services, such as Alipay and WeChat payment, which we often use.

　　By the end of September 2023, there were 185 non-bank payment institutions in China. At present, the annual transaction amount of payment institutions has reached nearly 400 trillion yuan, serving over 1 billion individuals and tens of millions of merchants. What impact will this new regulation have on this multi-billion-dollar market? What convenience will it bring to the people?

　　What are the contents of the regulations?

　　There are 6 chapters and 60 articles in the Regulations, which focus on four aspects, including defining non-bank payment institutions and establishing licenses, improving payment business rules, protecting users’ legitimate rights and interests, and clarifying regulatory responsibilities and legal responsibilities.

　　The "Regulations" focus on giving play to the important role of the non-bank payment industry in helping the development of the real economy and improving people’s livelihood; Strengthen the guidance on the functional orientation and development of payment institutions, guide payment institutions to adhere to the purpose of small amount and convenience, focus on the main business, improve services, and better meet the payment and settlement needs of users; Strengthen user orientation and greatly enhance the protection of user rights and interests; Form a stronger mechanism guarantee in comprehensively strengthening supervision, preventing and resolving risks.

　　The person in charge of the Payment and Clearing Association told reporters that from this perspective, the Regulations are the "basic law" for the healthy and sustainable development of non-bank payment services.

　　What are the problems in the payment industry? What are the new regulations?

　　At present, China’s mobile payment ranks at the leading level in the world, effectively helping the development of the real economy and improving people’s livelihood.

　　At the same time, however, some payment institutions also operate in violation of regulations, such as: illegally misappropriating user funds, revealing or improperly collecting and using user information; Individual payment institutions take risks and provide funds transfer channels for illegal and criminal activities such as telecommunication network fraud and cross-border gambling.

　　In view of these problems, one of the key contents of the Regulations is to greatly strengthen the protection of users’ rights and interests. On the one hand, it is clear that payment institutions shall not misappropriate, occupy or borrow customers’ reserve funds, and shall not forge or alter payment instructions. At the same time, regarding the protection of users’ rights and interests, which consumers are generally concerned about, the Regulations not only require payment institutions to respect the legitimate rights and interests such as users’ right to choose independently and the right to know, but also disclose relevant information to users in a timely manner; It also requires payment institutions to take measures to ensure the safety of users’ personal information and prevent users’ information from being leaked or abused, which gives consumers a "reassurance" and allows them to use all kinds of network and mobile payment services more safely.

　　Strict entry threshold and increase punishment

　　The "Regulations" clearly adhere to licensed operation and strictly enter the threshold. Payment institutions must implement access management in accordance with the principle of "license before license", clarify the access conditions of payment institutions such as registered capital, major shareholders, actual controllers and senior management personnel, and also implement license management for major changes, and at the same time establish and improve the normalized exit mechanism of serious illegal institutions.

　　In addition, the "Regulations" clearly stipulate that penalties for serious violations of laws and regulations will be increased according to law.

　　How to punish? Who will punish?

　　The Regulations clarify that the People’s Bank of China may impose fines on relevant payment institutions, restrict some payment businesses or order them to suspend business for rectification, even revoke their payment business licenses. At the same time, it is clear that the directors, supervisors, senior executives and other personnel who are directly responsible can be punished according to specific circumstances, and if the circumstances are serious, measures can be taken to ban them from entering the market.

　　What do payment institutions think?

　　This new payment regulation involves both head payment institutions and small and medium-sized payment institutions, including representatives of private and foreign payment institutions.

　　What impact will the implementation of the new regulations have on the industry? Alipay, WeChat and other related business leaders have voiced their voices. All payment institutions said that the Regulations will help the non-bank payment industry to further standardize the healthy development and make positive contributions to the development of the real economy and the improvement of people’s livelihood.

　　one

　　Alipay: It is conducive to the standardized and orderly development of the payment industry

　　The relevant person in charge of Alipay said that the implementation of the Regulations laid a foundation for healthy competition and standardized and healthy development for the future development of payment institutions. Through this management regulation, the full chain and full cycle supervision of payment institutions is further strengthened, which is conducive to preventing risks in the payment industry. At the same time, under the role of standardization, the payment industry will usher in further standardized and orderly development, which is also conducive to the long-term development of the physical industry.

　　Tenpay: The payment industry has fundamental regulations.

　　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 regulations to administrative regulations, which indicates that the payment industry has fundamental regulations, which is conducive to strengthening industry supervision, improving supervision efficiency and establishing supervision authority; On the other hand, it conforms to the development trend of the payment service market, which 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.

　　three

　　Paypal payment: payment institutions can operate more legally and regularly.

　　The promulgation and implementation of this regulation is conducive to the establishment of long-term stable expectations of all parties in the industry, and the payment institutions can operate more legally and standardize, thus ensuring the healthy and sustainable development of the payment industry. Strict access to payment institutions is one of the important measures to ensure the development of the payment industry. The regulations have further improved and optimized the conditions and standards for the access of payment institutions, making them more scientific and standardized. This measure will help to improve the strength and service quality of the whole industry and provide more secure and reliable payment services for users and businesses.

　　four

　　Union easy treasure: the industry expects to escort the high-quality development of the payment industry.

　　With the rapid development of the payment industry, some problems are gradually exposed, and risk events such as business alienation, misappropriation of funds and data leakage occur from time to time. Some institutions use payment platforms to engage in illegal fund-raising and telecommunication network fraud, which damages the image and reputation of the industry, disrupts the financial order and infringes on the legitimate rights and interests of financial consumers. The contradiction that the existing payment supervision system is low in level, limited in legal effect and unable to fully adapt to market norms and development needs is increasingly prominent. It can be expected that the "Regulations" will strengthen the full chain and full cycle supervision of the non-bank payment industry, which is conducive to giving full play to the role of the law in safeguarding the industry, stabilizing expectations and benefiting the long term, and empowering and escorting the high-quality development of the payment industry.

　　(CCTV reporter Sun Yan)