After several delays, rumor is being spread again that People’s Bank of China, the Chinese central bank, is set to issue online payment license to 3rd party solutions. There are less than 4 months left for the deadlines imposed by the PBC to consolidate Chinese online payment market, starting this September.
According to people familiar with the matter, 32 companies are applying for payment licenses, including Alipay (by Alibaba), Tenpay (by Tencent), 99Bill, YeePay, HuanXun Payment, HuiFuTianXia, and the government owned ChinaPay, a subsidiary of China Unionpay. If fail in obtaining such license, one is not allowed to engage in online payment market as of September 1.
Chinese online payment area is facing tough competition as many giant internet companies had released or are launching their own payment solutions in succession. Shenda boasts Shengpay, NetEase possesses Wangyibao, while Baidu owns BaifuBao. And aside from 3rd online payment solutions, as we reported before, Chinese banks are also compete into the lucrative online space to intensify the existing stiff rivalry.