At the policy briefing held by the State Council Information Office (SCIO) at 4 p.m. on December 28, 2023 (Thursday), Zhang Qingsong, Deputy Governor of the People’s Bank of China (PBOC), Liu Xiaohong, head of the Legal Affairs Department of the PBOC, and Wang Sheng, head of the Payment and Settlement Department of the PBOC briefed on the Regulations on the Supervision and Administration of Non-bank Payment Institutions (hereinafter referred to as the Regulations) and answered questions from the press.
Shou Xiaoli, Deputy Director-General of the Press Bureau of the SCIO and SCIO spokesperson:
Good afternoon, ladies and gentlemen. Welcome to the State Council policy briefing. The Regulations have been released recently. Today we are delighted to invite Mr. Zhang Qingsong, Deputy Governor of the PBOC to introduce the Regulations and answer your questions. Also present here today are Mr. Li Mingzheng, Director-General of the Second Bureau of Legislation of the Ministry of Justice (MOJ), Mr. Liu Xiaohong, head of the Legal Affairs Department of the PBOC, and Mr. Wang Sheng, head of the Payment and Settlement Department of the PBOC.
Now, I will give the floor to Mr. Zhang Qingsong.
Zhang Qingsong, Deputy Governor of the PBOC:
Thank you for your introduction. Good afternoon, friends from the press! I appreciate your long-standing attention to and support for the work of the PBOC. Today I am glad to share with you related issues on the Regulations deliberated and approved on the executive meeting of the State Council in recent days. As the first administrative regulations in the financial sector issued after the Central Financial Work Conference, the Regulations are concrete measures to implement the guidelines of the Central Financial Work Conference, serving as a milestone in bolstering the high-quality development of the payment industry.
The payment industry has been playing a foundational role in serving the real economy and improving people’s livelihood. After decades of development, China has established an extensive, safe and efficient payment and clearing system centered on the central bank’s payment and clearing system, with the joint engagement of commercial banks, clearing institutions, and non-bank payment institutions. Currently, over 4,000 commercial banks and more than 180 payment institutions have effectively met the payment needs of 160 million business entities and billions of consumers. China’s ownership rate of oersonal bank accounts has exceeded 95 percent, higher than the average of middle- and high-income economies, and the penetration rate of mobile payments has reached 86 percent, ranking first in the world.
The modern financial system that is fast, safe and inclusive is one of the highlights and important symbols of China’s financial services. Payment services used to be rendered mainly by commercial banks, and gradually adopt a new pattern in which commercial banks mainly provide large-value and corporate payment services while payment institutions focus on small-value and convenient payment services as a result of the fast-growing non-bank payment services, featuring both competition and cooperation with division of labor.
During the development of the payment industry, the PBOC has adhered to the philosophy of “payment for the people”, and struck a balance between development and security to effectively maintain a benign order in the payment industry. We have given prominence to forestalling and defusing risks, severed the direct connection between payment institutions and banks, expedited the centralized depository of customers’ provisions, severely cracked down on all kinds of illegal and irregular conducts in accordance with the laws, and effectively protected users’ legitimate rights and interests. As a result, we’ve achieved inspiring results.
Accelerating the establishment of laws and regulations in the payment industry is critical to pushing forward the building of the governance system and capacity of the industry. Since 2018, the MOJ and PBOC have conducted in-depth research and sufficient demonstration, based on which the Regulations was drafted. On November 24 this year, the Regulations was deliberated and approved on the executive meeting of the State Council, and will take effect on May 1, 2024. The launch of the Regulations further clarifies the rights, obligations, and responsibilities of all players in the payment industry, assigns the regulatory authorities with law-based administrative rights, and steadfastly consolidates the law-based foundation for the industry to develop in a regulated and sound manner, marking a brand-new stage in the development of the payment industry.
Going forward, the PBOC and MOJ will stress policy advocacy and interpretation, and guide the payment institutions to effectively implement the provisions of the Regulations. At the same time, we will draw up the detailed implementation rules of the Regulations as soon as possible, and work actively to revise and clean up the existing regulations and normative documents in the field of non-bank payments.
We believe that China’s payment market will function more orderly in a healthier payment ecology with the successful implementation of the Regulations, thus facilitating high-quality economic development through a more robust payment industry.
That is all for my brief introduction to the Regulations. Next, my colleagues and I are glad to answer your questions. Thank you!
Shou Xiaoli:
Thank you for your introduction, Deputy Governor Zhang. Now the floor is open for questions. Please name your agency before raising questions.
CCTV:
What results have the payment industry delivered in serving the real economy and improving people’s livelihood in recent years? And how will the Regulations guide the payment industry to better serve the real economy? Thank you.
Zhang Qingsong:
Let me answer your questions. The Central Financial Work Conference emphasized the need of the financial sector to provide high-quality services for economic and social development. In recent years, the PBOC has been guiding all parties in the industry to establish the philosophy of “payment for the people” and adhere to the people-centered value orientation. As a result, the payment industry has achieved progress while ensuring stability, and significantly improved the quality and efficiency of its services. In addition, the reform and opening-up have been advanced in a stable manner, and its basic role in economic and social development has been further enhanced, which is reflected in the following aspects:
First, the quality and efficiency of the payment industry in serving the real economy and improving people’s livelihood have been improved continuously. To achieve the gosl of boosting transaction activities and market prosperity, payment institutions implemented and refined fee reduction policies for the payment industry to cut profits in favor of the real economy, which reached RMB30-40 billion per year. The connectivity in the payment industry was promoted. E-wallets such as China Unionpay Quick Pass got access to major online mobile payment scenarios, mutual recognition and scanning of all kinds of bar codes and QR codes made headway, and the payment industry ecology embraced a more open and diversified trend.
Second, the payment industry order has been regulated significantly. We were unswervingly committed to stringent regulation, strictly cracked down on the “capital chains” related to frauds and gambling, and closely collaborated with authorities including the public security organs to safeguard the “wallets” of the public. We worked to regulate the acquiring market and reinforce the industrial self-regulatory management. We paid close attention to the safe production of the payment and clearing system, thus ensuring the smooth and efficient operation of payment infrastructures.
Third, the high-level two-way opening-up in the payment sector has been steadily expanded. We were committed to opening-up and cooperation and made continuous efforts in building the cross-border payment system. Consequently, the Cross-border Interbank Payment System (CIPS) attracted participants from 111 countries and regions, with its businesses covering 182 countries and regions, which effectively bolstered the RMB international use. We also steadily facilitated the cross-border mobile payment, thus providing more convenient payment services for foreigners who work, live, and travel in China.
The recently issued Regulations mainly apply to payment institutions offering small-value and convenient payment services. According to statistics, these payment institutions deal with approximately 1 trillion transactions annually with RMB330 for each transaction on average. It is of great significance for them to build a sound and adequate supervision and administration framework as they are closely bound up with the business activities of business entities and the daily life of the public.
The Regulations guides payment institutions to further improve the quality and efficiency in serving the real economy from the following aspects.
First, the Regulations highlights the core positioning of payment institutions in serving the real economy. Payment institutions should provide small-value and convenient payment services when conducting businesses; and the supervision and administration of such institutions should focus on whether the goal of serving the real economy has been achieved.
Second, the Regulations requires payment institutions to upgrade their own capabilities guided by the belief that it takes a good blacksmith to forge good steel. The registered capital threshold for payment institutions should be properly increased, and they should be required to have compliant business systems, facilities and technologies as well as governance structure, internal control, and risk management capacity systems.
Third, the Regulations guide payment institutions to focus on their original businesses of payment. Payment institutions are guided to pay close attention to and improve their services. They should carry out businesses based on approved business types and geographical locations and should not engage in other businesses that are subject to approval according to law without approval.
Fourth, the Regulations encourage partnerships between payment institutions and banks. It is necessary to give full play to the advantages of payment institutions in terms of wide user reach and convenience of services, while also encouraging banks to play an important role in safeguarding the security of funds and improving the efficiency of fund utilization.
Fifth, the Regulations are dedicated to maintaining a fair competition order. It is emphasized that payment institutions should not engage in monopolistic or unfair competition practices that impede the order of fair competition in the market. This is conducive to protecting the legitimate rights and interests of payment users in accordance with the law.
Sixth, the Regulations have clarified several regulatory red lines. The payment institutions are guided to firmly establish the business philosophy that “compliance fosters productivity and competitiveness”, thus preventing non-compliant operations and promoting the sound development of the industry. Thank you.
Haibao News:
When it comes to the regulated development of the third-party payment industry, we have to mention the “Order No.2”, which is also known as the Administrative Measures for the Payment Services Provided by Non-financial Institutions formulated by the PBOC in June 2010. We have observed significant changes between the Regulations and the “Order No.2”. Could you please elaborate on the background and considerations behind these changes? Thank you.
Wang Sheng, head of the Payment and Settlement Department of the PBOC：
Thank you for your question. Upon the release of Order No.2 in 2010, the payment institutions were in their infancy with relatively small business scale and market share. Over the past decade, payment institutions have ceaselessly innovated their businesses and witnessed rapid growth in business volumes, with the compound annual growth rates of both the number and amount of transactions exceeding 40 percent. In 2022, 185 payment institutions nationwide handled over 1 trillion transactions with a total amount of nearly RMB400 trillion, and served over 1 billion individuals and tens of millions of merchants. These institutions played an important role in small-value and convenient payment services and made a valuable contribution to the development of the real economy and the improvement of people’s livelihood.
However, we have noticed that the Order No.2 gradually lagged behind the latest market development and supervisory requirements as the payment institutions experienced fast growth. For instance, the Order No.2 is a departmental regulation at a lower hierarchy of legal norms and with insufficient regulatory effectiveness. Next, the Order No.2 allows payment institutions to regulate business in accordance with the principle of “l(fā)icense first, operating permit second”, which is not conducive to reinforcing their corporate governance requirements. Additionally, the Order No.2 divides payment business types by transaction channels and acceptance terminals, which fails to adapt to emerging payment modes in the market.
The newly issued Regulation highlights supervisory consistency and continuity, effectively connecting to the Order No.2 and supervisory practices. Compared with the Order No.2, the Regulation has made the following changes. First, the legal validity of the Regulation rises to administrative rules from departmental regulations, further consolidating the foundation of the rule of law for and the healthy development of the payment industry. In the form of national legislature, the Regulation clarifies the access, changes and exit conditions for payment institutions and their legal liabilities, stipulates the rules and supervisory requirements for the payment business, strictly enforces the access threshold of payment institutions, prevents non-compliant risks,,and guards against illegal fundraising, telecom fraud, and other criminal activities conducted through payment platforms, thus making the supervisory standards more authoritative and transparent.
Second, the Regulation emphasizes the integration of institutional supervision and functional supervision. The Regulation brings forward that the payment institutions should be managed under the principle of “operating permit first, license second”, stipulates that controlling shareholders and actual controllers of payment institutions should abide by the provisions on equity management, and proposes specific supervisory requirements on corporate governance and management for systemically important institutions, thus constructing the “institutional supervision” framework. Furthermore, the Regulation redefines payment business from the perspective of funds and information. The payment business under the new classification method, regardless of their external forms, could all be classified and managed by their underlying operation and are not subject to new payment channels or payment modes. In this sense, the “functional supervision” is implemented to better adapt to the development needs of payment business.
Third, the Regulation further highlights the protection of users’ legitimate rights and interests. In response to activities such as leaking user information and misappropriating user funds by some payment institutions in recent years, the Regulation clarifies the fairness principle of payment service agreements to prevent “high-handed clauses”; strengthens the management on provisions to safeguard fund and property safety of users; clarifies the principles of processing user information to protect users’ right to know and choose; and strengthens the supervision and administration by stipulating the legal responsibilities of payment institutions upon the occurrence of illegal and irregular conduct, so as to effectively protect the legitimate rights and interests of payment users.
Thank you.
The Paper:
Non-bank payment business has developed rapidly with the rise of China’s digital economy, e-commerce and other new business forms, and has played an important role in small-value and convenient payments. My question is, what influence will the launch of the Regulation have on current payment market? How will it facilitate the standardized and healthy development of the industry? Thank you.
Zhang Qingsong:
Thank you for your questions and I will answer your questions. As we all know, the payment industry has maintained very rapid development for a period of time due to the fast-growing Internet technologies and its deep penetration in all sectors of the economy. According to our judgment, after entering the mature stage, the payment industry will still maintain growth but not at an explosive speed. Some problems have emerged in the payment industry as a result of the fast-developing business forms. For instance, it is imminent for payment institutions to foster compliance awareness. We have yet to optimize the industry development patterns, improve weaknesses of institutions’ capacities in providing services, and continuously enhance regulatory capacity building. As a result, we have been committed to problem-oriented and high-quality industry development to promote the introduction of the Regulation. And the Regulation is on track to be introduced against this background. I will say a few points:
First, the Regulation is basically consistent with the supervisory practices in recent years. The Regulation has highlighted effective practices in recent years that bolster development and those practices have become administrative regulations. During the legislative process, we put a special focus on fully soliciting and gathering opinions and suggestions from all parties, as Mr. Li Mingzheng, Director-General of the Second Bureau of Legislation of the MOJ has just introduced. The Regulation has reinforced the consensus of all parties on policies and is in line with macro policy orientations, which helps stabilize market expectations and boost development confidence. Friends from the media may have noticed that different types of payment institutions have expressed their understanding of the Regulation and also offered some opinions and suggestions after the Regulation was deliberated and approved by the executive meeting of the State Council. According to my observation, these institutions voiced support overall and expressed their resolutions of strictly abiding by the Regulation.
Second, the Regulation emphasizes supervisory consistency. Proposing uniform supervisory measures for business of the same type and confirming basic institutional norms that all payment institutions, regardless of their ownership, will be treated equally helps promote fair competition and stimulates market vitality.
Third, the grace period is allowed for the Regulation. The Regulation will take effect on May 1, 2024, before which ample preparation time will help payment institutions get familiar with and understand related laws and regulations and implement the Regulation in an effective manner.
The Regulation provides strong institutional support for the healthy development of the payment industry through national legislature and focuses on creating a law-based business environment characterized by stability, transparency, standardization, and predictability for expediting the long-term, standardized and healthy development of the payment service market. The implications are as follows:
First, the Regulation ensures fair competition in the industry through fair supervision. The Regulation sticks to the principle that financial activities must be licensed, and strengthens supervision on the whole chain and full cycle, which facilitates the implementation of supervisory requirements, thus maintaining a benign industry order, and forestalling risks associated with business alienation, fund misappropriation, and data leakage.
Second, the Regulation improves the quality and efficiency of payment service supply. The Regulation makes it clear that payment institutions should provide small-value and convenient payment services, which is conducive to enhancing the capacity of payment industry in providing services for inclusiveness, people’s livelihood and the convenience of seniors. The Regulation highlights maintaining the order of fair competition, which helps guide major payment institutions to give full play to their leading role, attach greater importance to the interests of the industry, society, and the public, take the lead in maintaining fair competition, bolster market connectivity, and expand opening-up of the ecosystem.
Third, the Regulation facilitates high-level opening-up. The Regulation grants foreign investment payment institutions with national treatment and places equal emphasis on both “bringing in” and “going global”, helping further enhance the efficiency of flow of funds both domestically and cross the border and improve payment services for cross-border e-commerce and other new forms of business.
Thank you.
Hong Kong Bauhinia Magazine:
In recent years, the acts of some payment institutions have infringed on the rights and interests of users. What does the Regulation provide for to effectively protect the legitimate rights and interests of users? Thank you.
Liu Xiaohong, head of PBOC Legal Affairs Department：
Thank you for your question. The PBOC has long upheld the concept of “providing payment services for the people”, attaching great importance to the protection of the legitimate rights and interests of users in the area of payment. The Regulation clearly sets out the following to protect the legitimate rights and interests of users.
First, the fairness principle is specified for the making of payment service agreements to safeguard the right of users to fair dealing. According to the Regulation, a payment service agreement shall specify the matters, such as the rights and obligations of the payment institution and the user, dispute handling principles, and liabilities for breach of contract, and it shall not contain any clause that excludes or restricts competition, unreasonably exempts the payment institution from or relieve it of its responsibilities while adding to those of the user, or limits or disregards the major rights of the user. Moreover, the payment institution is required to draw users’ attention, in appropriate ways, to the clauses that have substantial influence on their decision to use a payment service or not, and it should give explanations as needed. To change the terms of the agreement, a payment institution shall solicit the opinions of users and publish an announcement about the changes to be made.
Second, the Regulation strengthens the management of provisions to safeguard the funds of users. It sets clear rules on the transfer of provisions and lays down the don’ts regarding the management of provisions by payment institutions. It also provides for centralized deposit of provisions, requiring that payment institutions deposit provisions with the PBOC or the commercial banks that meet the criteria set by the PBOC.
Third, the Regulation specifies the rules for user information processing to protect the rights of users to know and to choose. According to the Regulation, in processing user information, a payment institution shall abide by the principles of legality, justifiability, necessity, and integrity. It shall disclose to the public the rules for user information processing, specify the purposes, method, and scope of the processing, and seek consent from users in alignment with the provisions on personal information protection, such as those of the Civil Code and the Personal Information Protection Law.
Fourth, the Regulation promotes establishment of diversified mechanisms for resolving disputes to guarantee the channels for remedy of infringements on user rights. It requires that payment institutions properly tackle their disputes with users in a timely manner, fulfill their responsibilities for complaint handling, and effectively protect the legitimate rights and interests of users. At the same time, users and payment institutions are encouraged to resolve their disputes through such means as mediation and arbitration so as to facilitate efficient resolution of disputes.
Thank you.
Yicai:
Payment businesses are now reclassified into two types, i.e., stored-value account management and payment transaction processing. What is the basis for the setting of standards for the reclassification? How will the old business types transit to the new? And how is the PBOC getting on with the formulation of the detailed implementation rules? Thank you.
Wang Sheng:
Thank you for your questions. We used to classify payment businesses into three types, i.e., network payment, bankcard acquiring, and prepaid card issuance and acceptance, with network payment subdivided into categories, such as Internet payment, mobile phone payment, and telephone payment. Based on years of regulatory practice, the Regulation follows a function-based regulatory approach and focuses on the business nature, so that payment businesses are reclassified into two categories, i.e., stored-value account management and payment transaction processing, according to whether or not prepaid funds can be accepted.
The new way of classification, first of all, has extensive coverage and will be conducive to preventing regulatory vacuums. It can better adapt to the changes in the development of the industry as payment businesses, whatever forms they may take, can always be classified and managed according to the business nature. In this way, emerging payment businesses in the market can be quickly classified into the two basic types and brought under regulation accordingly. Second, it will be helpful to the conduct of “the same regulation on the same type of businesses” and promote fair competition. The new way of classification, by focusing on the business nature and the risk features underneath the external forms of payment businesses, will help unify the regulatory requirements on payment businesses and create a fairer institutional environment.
The transitional measures for established non-bank payment institutions shall be further specified in the implementation rules of the Regulation. With regard to the transition from old to new business licenses, we will incorporate established payment institutions into the new division mode for management based on the principle of “smooth transition”. On the one hand, this move is aligned with the licensing framework under the existing division mode to ensure a smooth transition from the old mode to a new one without expanding the initial business and geographical scope, so its influence on the market is small. On the other hand, the scalability of the new division mode is guaranteed so as to avoid frequent changes to regulations, which may happen when iterative changes in future payment channels and instruments lead to adjustments in payment business classification.
Currently, the PBOC is ramping up efforts to formulate the implementation rules of the Regulation. It will be launched after opinions from all parties are fully solicited and considered in accordance with the relevant provisions of legislative procedures so as to ensure smooth implementation of the Regulation.
Thank you.
Cover News:
Practicing access management and specifying the exit mechanism are key to forestalling payment risks. What are the important measures proposed in the Regulation for access permission and exit mechanisms? What do they mean for forestalling risks? Thank you.
Liu Xiaohong:
Thank you for your questions. According to the Central Economic Work Conference, all types of financial activities should be brought under regulation in accordance with the law and institutional regulation should be comprehensively strengthened. To resolutely implement the arrangements of the Central Committee of the Communist Party of China (CPC) and the State Council, the MOJ and PBOC adopted a problem-oriented approach and took a holistic perspective, and promoted law-based and standardized regulation covering the whole chain and full cycle of payment institutions during the formulation of the Regulation. The second chapter of the Regulation specifically stipulates the establishment, change and termination of payment institutions.
First, financial activities must be licensed with a strict access threshold. According to the Regulation, the existing business licensing is changed into institutional licensing and access management shall be implemented in accordance with the principle of “issuing a permit before a license”. The Regulation clarifies the requirements on registered capital, major shareholders, actual controllers, directors, supervisors, officers, business premises, security measures, and corporate governance structure when a payment institution is to be established. The access threshold for registered capital is raised as appropriate. The floor is set at RMB100 million, and it shall be paid-in capital.
Second, changes in major issues are included in administrative licensing. In regulatory practices, some payment institutions were found to evade regulation by changing major issues. Thus, to fix regulatory loopholes, the Regulation makes it clear that any change in the name, registered capital, business type or business premises of payment institutions, any change in their domicile across provinces, autonomous regions or municipalities directly under the central government, any change in their main shareholders or actual controllers, any change in their directors, supervisors or officers, any merger or demerger, etc., shall be approved by the PBOC.
Third, the exit mechanism for payment institutions is improved. The PBOC has guided some high-risk institutions to exit the market based on market principles and the rule of law since 2016. Based on past experience and lessons, the Regulation specifies the exit circumstances and procedures for payment institutions and put forward that a scheme to ensure the security of users’ funds and information should be developed in accordance with the provisions so as to ensure orderly exits.
Fourth, efforts should be intensified to crack down on illegal and irregular conduct. In line with the requirements of “severely cracking down on illegal activities while regulating legal activities”, the Regulation makes it clear that payment institutions that are established or engaged in payment business plainly or in disguise without approval shall be banned. Meanwhile, warnings, public reprimands, fines, restrictions on part of payment businesses, revocation of payment business licenses, and other administrative punishments shall be imposed on violations of administrative licensing management as appropriate to increase the cost of violations of law.
Thank you.
China Daily:
In China, people generally prefer and are used to mobile payment, while overseas visitors, not used to mobile payment, usually pay by bank card or in cash. May I ask what work has been done to facilitate payment for overseas visitors to China? Thank you.
Zhang Qingsong:
Thank you. I will answer your question. Payment facilitation for overseas visitors to China is a highly focused issue at present. The PBOC attaches great importance to it and has meticulously analyzed the causes of existing problems. From the perspective of evolution of payment instruments on the global retail end, the reason for payment inconvenience confronted by some overseas visitors lies in differences in our payment habits as we are in different stages. As you put it, the Chinese are generally used to mobile payment. However, lots of foreign visitors to China, particularly those from Europe and the United States are more comfortable with using bank cards or cash due to the inertia of their payment habits. Hence, we must solve this problem arising from different payment habits across nations.
To this end, the PBOC, together with relevant departments, has established a special working mechanism and issued guidelines, and it has begun to organize relevant units to advance the work in an orderly manner. The solution can be summarized as “l(fā)arge-value payment by card, small-value payment by scanning QR code and cash as a basic support”. Now I will explain it in detail.
The first is to improve the acceptance environment for overseas bank cards. We have organized all branches of the PBOC to investigate the acceptance of overseas bank cards by merchants under their jurisdiction. We have, together with departments responsible for commerce, culture and tourism, specified main foreign-related premises, which include key business districts, airports, and railway stations. Meanwhile, we have guided commercial banks and payment institutions to speed up the efforts to promote activation of overseas bank card acceptance by key merchants. This is what the “l(fā)arge-value payment by card” means.
The second is to enrich the supply of mobile payment products. We have guided Alipay, Tenpay, and China UnionPay to roll out such products as “binding overseas bank cards for payment in China”, “using overseas wallets in China” and the “travel pass” card (“E Money” card) of China Unionpay Quick Pass. We have innovated research and development of e-CNY solutions to meet the mobile payment needs of foreign visitors to China. This is called “small-value payment by scanning QR code”.
The third is to improve the environment for cash use. We have organized banks to renovate ATM acceptance of overseas bank cards and to increase the coverage rate of ATMs supporting cash withdrawals with overseas bank cards. We have kept working on the special rectification task targeting refusal of RMB cash. This is called “cash as a basic support”.
In addition, we have continued the efforts to optimize our account services. We have guided banks to practice category-based and hierarchy-oriented account management and to improve procedures for account opening, thus facilitating bank account opening for foreign visitors who need such services.
We have also proactively carried out publicity. By fully leveraging online and offline channels, we have organized the PBOC system and payment service entities to conduct publicity activities in overseas visa centers, ports, and airports, ensuring wide coverage and high accessibility.
In general, our work has delivered positive results thanks to the concerted efforts of all parties. In particular, we managed to provide fast, safe and convenient payment services for foreign visitors to China during 2022 Beijing Winter Olympic Games, FISU World University Games 2023 in Chengdu, the 19th Asian Games Hangzhou, Summer Davos Forum in Tianjin and other major international events and conferences. Modern payment systems have become a magnificent name card showcasing China’s high-quality development.
Going forward, the PBOC will work with relevant departments to give full play to the role of the special working mechanism and continue to advance acceptance of overseas bank cards, mobile payment, cash use, account services, publicity and promotion, etc. in accordance with work plans and goals, so as to further improve convenience of payment for foreign visitors to China. I am here to kindly ask friends from the press to work with us on it. China will open further to the outside world, and we will provide overseas visitors and friends with high-quality, safe and convenient payment services. That is my answer to your question.
I would like to take this opportunity to make a brief conclusion. Today’s policy briefing is focused on the Regulation. Payment is closely linked to everyone’s daily life. I believe everyone here uses payment services every day. For a long time, the elder generations could only make a remittance in the bank in person, which I think is not the case with lots of young friends present here. Banks and non-bank payment institutions are all entities providing payment services. If measured by the number of transactions, payment institutions account for 80 percent and banks account for 20 percent, but if measured by transaction amount, banks represent a significant proportion while payment institutions make up a small proportion. Therefore, banks and non-bank institutions together constitute the entities providing payment services, with both division of labor and collaboration. Their aim is to provide business entities and the general public with safe and efficient payment services. We are proud of QR code and mobile payment. They are our name cards, manifesting high-quality development in China. And for business entities and the public, they are new solutions thanks to technological and industrial progress. However, some problems and risks have arisen along with rapid development of the payment industry. This is why we unveiled the Regulation. As far as I understand it, the Regulation is aimed at: firstly, ensuring law-based and compliant operations of payment institutions; secondly, upholding the principle of small-value and convenient payment; and thirdly, ensuring benign and dynamic competition. The PBOC is the competent administrative organ according to the Regulation. We will administer according to the law and strictly fulfill the provisions of the Regulation. We will treat all types of payment institutions equally regardless of their importance and sizes, regulate them by law, and make sure that they play their roles as high-quality payment service providers for business entities and the general public. In the meantime, we will keep fostering a healthy and vigorous payment ecology.
Thank you.
Shou Xiaoli:
Thanks to our speakers and friends from the press. This is the end of today’s briefing. See you next time.
