What's New in Payments

Chinese banks and carriers to pilot central bank digital currency

China’s central bank likely to pilot digital currency in cities of Shenzhen and Suzhou — Coindesk — “The People’s Bank of China is said to be preparing to launch pilots for its digital currency in at least two major cities. The tests are likely to include the participation of state-owned partners. These comprise the ‘Big Four’ commercial banks — the Industrial and Commercial Bank of China, Bank of China, China Construction Bank and the Agricultural Bank of China — and three telcos: China Telecom, China Mobile and China Unicom.”


What's New in Payments

Central bank reports continued growth in Chinese mobile payments market

China mobile payments maintain rapid growth in Q3 — Xinhua — “Banks in the country processed 27.27bn mobile payment transactions in the period, up 61.05% year on year, said the People’s Bank of China in a report. The value of these transactions increased by 31.52% from the same period of last year to 86.11tn yuan (about US$12.2tn). Meanwhile, online payment transactions by the non-banking institutions were valued at 63.99tn yuan in Q3, up 23.04% year on year.”






What's New in Payments

China’s central bank to develop a digital currency

Central bank unveils plan on digital currency — China Daily — “The People’s Bank of China, the central bank, is organising market-oriented institutions to jointly research and develop a central bank digital currency and the programme has been approved by the State Council, the country’s Cabinet, Wang Xin, director of the PBOC Research Bureau, said at a seminar at Peking University.”


What's New in Payments

Chinese banks report 73% growth in mobile payment transactions

Mobile payment on fast growth in China — Xinhua — “The country’s banks processed 14.92bn mobile payment transactions in Q2, up 73% year on year, according to the People’s Bank of China. The value of these transactions totalled 62.88tn yuan (US$9.15tn), up 60% year on year… Online payment transaction value by non-banking institutions totalled 48.29tn yuan in Q2, up 53.35% year on year.”


What's New in Payments

Central bank tightens rules on accepting cards and cash in Chinese stores

As China goes increasingly cashless, PBOC says cash payment is still alive — South China Morning Post — “The central bank in China, the world’s largest mobile payment market, is urging individuals and companies to not refuse or discriminate against cash payment… The PBOC said cash should be accepted alongside the debit card at all business outlets, with the exception of e-commerce and unstaffed stores. Businesses have one month from Friday to make necessary adjustments to avoid being investigated for breaches by the authorities.”


What's New in Payments

Chinese consumers have now deposited $150bn with Alipay and Tencent

PBOC to raise reserve funds ratio for third-party payment firms to 100% — Caixin — “The two largest third-party payment firms, Alipay and Tenpay, combined hold nearly 1tn yuan (US$151bn) of customers’ funds, about 90% of the total reserve funds… Reserve funds are prepayments from online shoppers held temporarily by payment companies that can then earn income on the cash by depositing it in banks or even buying government bonds… The requirement means payment firms such as Alibaba Group Holding Ltd backed Alipay and Tencent Holdings Ltd’s Tenpay can no longer invest money deposited by their respective clients.”


What's New in Payments

Central bank patents point to plans for a hybrid digital currency in China

PBOC filings reveal big picture for planned digital currency — Coindesk — “The ultimate goal, according to PBOC’s patents, is to ‘break the silo between blockchain-based cryptocurrency and the existing monetary system’ so that the digital currency can sport cryptocurrency-like features, while being widely used in the existing financial structure.”


What's New in Payments

Chinese banks report growth in mobile payments volumes

Chinese banks post robust growth in mobile payments — Xinhua — “Chinese banks posted robust growth in mobile payments in the first quarter of this year, according to the People’s Bank of China (PBOC). Banking institutions handled 70.8 trillion yuan (US$11.1tn) in mobile payments in the period, up 16.8% year on year, the central bank data showed. Around 10.7bn payments were made through the banks’ mobile services in the first quarter, an increase of 17.8% year on year.”