Regulations spark backlash from businesses and consumers interested in mobile commerce
The People’s Bank of China has announced that it is considering revising the caps it has placed on mobile payments. This comes as response to backlash from consumers and Internet firms alike, claiming that the caps placed on mobile payments were unnecessary and inappropriate. The caps were introduced as part of new regulations proposed by the People’s Bank of China. These regulations were meant to provide consumers and businesses with more security in the mobile commerce field while also introducing new standards to the mobile sector.
Regulations had placed caps on the amount of money consumers could spend through their mobile devices
The proposed regulations would have placed a cap on payments made from a mobile device to $1,630 per year, with an $800 cap on any single purchase made through a mobile device. These caps are considered to limit the mobile commerce sector significantly, making it difficult for retailers to engage consumers that are becoming more reliant on their mobile devices. Large companies with a vested interest in the mobile commerce field, such as Alibaba, have taken issue with the caps placed on mobile payments by the People’s Bank of China.
China is a prominent market for mobile commerce
China has become one of the most active mobile commerce markets in the world. The country is home to both Alibaba and Tencent, which have a powerful presence in the digital space. Both companies have been focusing more heavily on mobile commerce in recent months in order to accommodate the growing demand for mobile services coming from consumers. These consumers have become quite active in mobile commerce as well and have criticized the caps being placed on their ability to pay for products from mobile devices.
People’s Bank of China may remove the caps being placed on mobile purchases through new regulations
The People’s Bank of China is currently looking into revisions to its proposed regulations. These revisions would include either removing or reducing the cap being placed on mobile payments. Doing so would allow consumers and businesses to continue focusing on the mobile commerce space more aggressively in the future.