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China opens up its $27 trillion payments market to foreign companies

23 martie 2018

Foreign companies can start applying for licenses, PBOC says. Will need to meet China regulations, including local servers

Foreign players can start applying for payment licenses and will be treated the same as local firms, the People’s Bank of China said in a statement on Wednesday. Applicants must set up local units, establish payment infrastructure – including disaster recovery systems – and store client information domestically, the central bank said.

Premier Li Keqiang on Tuesday promised to protect the intellectual property of foreigners investing in its economy, as China seeks to avoid a trade war with the U.S. Any entrants to the Chinese market – apart from meeting stiff local regulations – will also have to compete with the more than 260 firms that have received payment licenses including Ant Financial Services Group’s Alipay and Tencent Holdings’s WeChat Pay.

“The domestic market is quite saturated with very strong domestic players, and it is relatively hard for foreign companies to get a piece of the pie,” said Iris Pang, a Hong Kong-based economist at ING Groep NV. “But there is a chance for them to compete in the cross-border payment market.”

Chinese residents are increasingly fond of shopping on overseas e-commerce platforms, which tend to prefer local payment companies, Pang said.

Allowing foreign firms to enter the payment market with defined regulations helps boost innovation, creates a fair environment for competition, and improves the services of payment providers, the central bank said in the statement.

Some major Chinese players have expanded overseas and offered services to global users, it added, without naming any company. China’s payment firms processed 169 trillion yuan ($27 trillion) of transactions in 2017, a nine-fold surge from 2013, according to the central bank.

Source: Bloomberg

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Anders Olofsson – former Head of Payments Finastra

Banking 4.0 – „how was the experience for you”

So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”

Many more interesting quotes in the video below:

Sondaj

In 23 septembrie 2019, BNR a anuntat infiintarea unui Fintech Innovation Hub pentru a sustine inovatia in domeniul serviciilor financiare si de plata. In acest sens, care credeti ca ar trebui sa fie urmatorul pas al bancii centrale?