On March 7, 2024, the General Office of the State Council issued the Opinions on Further Optimizing Payment Services to Facilitate Payments (hereinafter referred to as the Opinions). Recently, officials from the People’s Bank of China (PBOC) answered press questions on the Opinions.
Q: What is the background for the launch of the Opinions?
A: In recent years, mobile payment has seen fast development and extensive application in China, and it has been deeply integrated into people’s daily life, especially in areas such as transport, catering, shopping, medical care and education. On the one hand, it has played an important role in improving transaction efficiency, reducing transaction costs and promoting financial inclusiveness. On the other hand, it has also somewhat replaced traditional payment methods such as bank cards and cash, so the inclusiveness of payment services needs to be improved. At the early stage, the PBOC, together with relevant agencies, has introduced a series of measures to facilitate mobile payment, optimize the environment for bank card and cash use, and improve account services. The efforts have delivered remarkable results.
Optimizing payment services is a systematic task that requires a mix of policies in various aspects and joint efforts from all related parties. To implement the decisions and arrangements made by the Central Committee of the Communist Party of China (CPC) and the State Council, and better meet the diversified payment needs of different groups such as the elderly and overseas visitors, the PBOC, together with relevant departments, drafted the Opinions after conducting in-depth investigations and listening to opinions from all parties. The Opinions make institutional arrangements for further optimizing payment services and improving payment convenience, thus providing support for further optimizing the business environment and promoting high-quality development and high-level opening-up.
Q: What are the general ideas of the Opinions?
A: The Opinions, under the guidance of the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, apply the new development philosophy fully, faithfully and comprehensively based on the new development stage, and speed up building a new development paradigm. Taking into consideration the payment preferences of different groups, the Opinions coordinate efforts to remove the blockages to payment, bridge the digital divide, and improve the multi-tiered and diversified payment service system, so as to provide higher-quality, more efficient and more convenient payment services for elderly people, overseas visitors to China and other groups.
In drafting the Opinions, we mainly focused on the following aspects. First, we adopted a goal-oriented and problem-oriented approach, and took solid steps to overcome challenges and introduced targeted measures by focusing on key areas and links such as bank card acceptance, cash payment, mobile payment, account service, and publicity and promotion. Second, we strengthened cooperation among all parties by fostering sound interaction between different departments of the central government, central and local governments, and the government and market. Also, we stimulated the enthusiasm and initiative of payment service providers such as banks and payment institutions to build a synergy. Third, we worked earnestly to make various payment methods more inclusive, and developed a coordinated payment service system in which various payment methods such as mobile payment, bank card and cash are compatible and available, so as to ensure diversified payment options for consumers.
Q: What are the key tasks involved in further optimizing payment services and improving payment convenience?
A: The Opinions put forward six major tasks. First, bank card acceptance will be effectively improved to meet the needs of the elderly, overseas visitors and other groups for making payment with bank cards in such scenarios as catering, accommodation, transport, sightseeing, shopping, entertainment and medical care. Second, the PBOC will ensure cash remains as a backstop payment option, continuously improve the environment for cash use, and upgrade the foreign currency exchange and cash services on an ongoing basis. Third, mobile payment will be further facilitated. Banks, payment institutions and clearing institutions are encouraged to cooperate with each other to put in place age-friendly and international service arrangements. Fourth, consumers’ choice of payment method will be better protected. Key venues such as business districts, tourist attractions, entertainment venues and hotels above a designated size will be required to support diversified payment methods including mobile payment, bank card and cash. Fifth, banks and payment institutions will further optimize the account opening process, and implement account classification and hierarchical management in a reasonable manner. Focusing on key areas, outlets and service stages, they will improve the supporting measures for account opening, thereby continuously upgrading the account services. Sixth, multiple methods and channels will be used to continuously strengthen publicity and promotion for payment services.
Q: How will the Opinions be properly implemented?
A: The Opinions require all regions and relevant parties to establish a sound working mechanism, and make detailed plans to effectively optimize payment services and improve payment convenience. We will strengthen coordination to ensure effective organization and implementation, refine work plans and supporting measures, and specify timetables and road maps. We will step up publicity and promotion by popularizing the significance of optimizing payment services to facilitate payments as well as relevant policy measures so as to improve knowledge of the elderly, overseas visitors and other groups of the domestic payment services. In addition, we will establish a supervision mechanism to conduct thorough investigations, supervision and guidance on key areas, key banks and payment institutions, and key merchants, ensuring that all arrangements are effectively put in place.
