China creates new clearing house to regulate online payment businesses
The People’s Bank of China (PBoC) has created a centralised online clearing platform for the country’s third-party payment market.
The new platform, dubbed Nets Union Clearing Corp., is aimed at enhancing supervision of the country’s expanding online payment market. At present, most third-party payment institutions are directly connected with banks for processing online payment transactions.
The platform, which had been undergoing trials since 31 March 2017, was set up by 45 companies, including the PBoC – which own a 12% stake in the platform.
The central bank in its notice said that banks and online payment systems such as Alibaba’s AliPay and Tencent’s Tenpay must connect to the new platform by 15 October 2017 and route transactions through the new platform beginning 30 June 2018.