As third-party online payment systems such as Alipay gain popularity with consumers, China's central bank is taking steps to reduce the risks associated with such payments.
A proposal released by the People's Bank of China on Friday (31 July 2015) suggested a daily transaction limit of 1,000 yuan to 5,000 yuan, depending on how sophisticated the payment system's security checks are.
Payment systems with both digital certification and signature qualification checks will be exempt from the limit restrictions, while those with only one qualification check will have a transaction limit of 1,000 yuan. A limit of 5,000 yuan will apply to payment platforms that have two or more security checks but not digital certification and signature checks.
Consumers undertaking a transaction that exceeds the permitted limit will be transferred to a more secure banking payment platform to pay the surplus amount, said the central bank.
Besides limiting the transaction size, the proposal also bans third-party payment platforms from opening accounts for institutions running financial businesses, such as online lending firms.
The proposal is open for public's comments from now till 28 August 2015.
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