Yesterday the Central Bank announced the second batch of 13 licenses to online payment solution providers, bringing the total up to 40. The original batch included the major players such as Alibaba’s Alipay, Tencent’s Tenpay and Yeepay for vertical industry based transactions. The new batch includes CUP Shanghai, Hangzhou JETCO and Chengdu Mount Bao.
However at least 200 payment solution company applicants are anxiously awaiting approval since the Central Bank originally set a deadline of September 1 to approve. Since the process is taking longer than expected, it is rumoured that the deadline will be pushed back. In June 2010, the Central Bank ordered non-financial institutions to apply and pay for a license to process online transactions.
Research firm, Analysys has reported a sharp increase in online payments. For the second quarter, third-party online payment transactions hit 460.9 billion yuan an increase of 95.3% compared to last year. With the trend towards online payments, it is a good thing to regulate third party online payment providers, so they can’t scam people.