Tag: People’s Bank of China

People’s Bank of China may revise caps placed on mobile payments

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 Mobile Payments and Chinese BankChina 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.

China developing a national mobile payments platform

China to be one of the few countries to have a unified, national payments platform

China is currently working to develop a national mobile payments platform. Once the platform is launched, China will be one of the very few countries in the world to have a unified mobile payments system. Chinese consumers have been involving themselves in mobile commerce quite heavily in recent years. As mobile devices become more common throughout the country, people are using these devices to shop online more regularly. The country’s retailers have also been embracing mobile commerce in an effort to connect with a new generation of consumers.china - national mobile payments platform

Payment platform expected to make use of NFC Technology

China’s mobile commerce platform is to make use of NFC technology. The country believes that NFC has a bright future in mobile commerce because of the growing number of devices that are making use of this technology. NFC has formed the backbone of mobile commerce for some time and has been praised for its ability to transmit digital information over short distances efficiently. Unfortunately, mobile devices that do not support NFC technology are unable to use NFC-based platforms unless these platform offer support for devices that are not NFC-enabled.

Several organizations come together to help develop national payments platform for China

The China Constrction Bank, China CITIC Bank, China Everbright Bank, China UnionPay, and China Mobile have been linked to the development of the country’s national payments platform. These organizations already have some experience in mobile payments and have been promoting mobile finance for some time. According to the People’s Bank of China, mobile commerce is currently undergoing a standardization process wherein consumers are becoming more comfortable with purchasing products from their mobile devices.

Chinese consumers favor platforms that do not rely solely on NFC technology

Payments processed through NFC-based services represent approximately 0.8% of mobile spending throughout China. Many retailers have opted to support other mobile commerce services that do not rely entirely on NFC technology to engage consumers. Given the low availability of NFC-enabled devices, consumers have shown favor for NFC-free platforms that allow them to shop for and purchase products online.