People’s Bank of China unveils draft regulations aimed at the mobile commerce sector
The People’s Bank of China has issued two drafts concerning regulations for online payment providers. The regulations are meant to introduce new restrictions on the digital finance sector in order to provide more protections to consumers and businesses concerning mobile commerce. Mobile payments are still quite new and lack any comprehensive regulatory structure. Without adequate regulation, mobile payment services are not required to adhere to any specific standards, therefore leaving some consumers exposed to possible exploitation due to lack of security.
New regulations could add more security to the mobile field
The People’s Bank of China has met with several organizations that operate within the mobile commerce field. The central bank has used these meetings to accrue insight concerning mobile payments. This insight has helped the organization develop new regulations that are expected to be enforced in the coming months. The regulations aim to change the way some third-party mobile payment platforms operate in order to ensure that all platforms adhere to universal standards.
Regulations ban the use of QR codes as mobile commerce tools
The new regulations have banned third-party organizations from facilitating money transactions to certain offline retailers. The regulations also limit the maximum amount of money that can be processed through a single transaction to $162.60, with a maximum cumulative limit of $1,625.96. Furthermore, mobile payments based on the use of QR codes will no longer be possible once the regulations have been activated. This is meant to add further protection to consumers with mobile devices as QR codes have become a popular tool amongst hackers looking to exploit financial information.
Tencent takes issue with the ban on QR codes
QR codes have become particularly popular among some mobile commerce organizations. These codes can be easily produced and scanned, making mobile payments quite convenient and efficient for consumers. Tencent, one of the largest Internet groups in China, has been using QR codes to promote mobile commerce for some time. The new regulations from the People’s Bank of China may derail Tencent’s works to establish itself as a leader in the mobile commerce field.
