The Chinese online payment ecosystem will see more regulation as all third-party payment companies including Alipay, WeChat Pay will have to transfer transaction data to Wanglian, Sohu is reporting (in Chinese).

On August 4th, the People’s Bank of China, the central bank of China, issued a document stating:
“Starting on June 30, 2018, payment agencies involved in the online payment business that accept bank accounts will have to use Wanglian (网联, meaning network platform or Non-Bank Internet Payment Union). By October 15, 2017, banks and payment companies should migrate their business to Wanglian.”

So what does this mean? In the past, when people wanted to make an online payment between different banks in China, they could use the third party payment companies directly. For example, we can transfer money from one bank account to the other account using Alipay, without any third party’s intervention. This model bypasses the central bank’s clearing system, and the transaction data is kept by third-party payment companies.

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Eva Yoo

Eva Yoo is Shanghai-based tech writer. Reach her at evayoo@technode.com