THE People’s Bank of China (PBOC) announced plans Wednesday to regulate QR code payment to contain risks arising from the popular service.
Payment institutions must obtain proper permits to offer barcode-based payment services, according to a document released by the PBOC.
Both banks and non-banking payment institutions must channel cross-bank transactions involving barcodes through the clearing system of the PBOC or other legal clearing houses.
The institutions should also enhance their security to prevent data breaches, according to the document.
The growing popularity of the mobile payment method has brought concerns such as security issues and unfair market competition, the PBOC said in the document.
The central bank has always been seeking a delicate balance between encouraging innovation and controlling risks, and the new standards on barcode payment have reflected that principle, it said.
The standards will be put into trial use next April.