China is one of the most advanced countries when it comes to the mobile payments. As these businesses have grown, regulators have tightened restrictions on the fintech sector to check risks and ensure financial safety. Wang Siwen has more. 

All you need to do is scan a barcode with a device to pay or receive money. China issues new payment rules as the government tightens oversight on the country's fintech sector.

WANG SIWEN Shanghai "The new payment rules for Alipay and WeChat Pay takes effect from March 1st, it aims to distinguish between business and personal transactions, in an effort to better regulate and prevent financial crimes."

The notice emphasizes the collection code is divided into personal and business collection codes, anyone using a payment platform in a way that looks a lot like a business should use a merchant barcode rather than an individual one to receive payments.

Another thing is the restriction of personal static collection barcode, which is prohibited in principle for remote non-face-to-face collections for most cases.

IlAF ELARD Assistant Professor of Practice in Economics NYU Shanghai "WeChat pay and Alipay have 90 percent of the market share of this kind of transactions, so it's actually monopoly, they have very strong hold of mobile payments."

According to the report, the value of transactions made through QR codes – both merchant and personal – hit 10.8 trillion yuan or $1.7 trillion in the second quarter last year.

Meanwhile, nearly 100 million small and micro business owners in China use individual QR codes on Alipay and WeChat pay to handle payments. And some have taken advantage of the lax oversight.

IlAF ELARD Assistant Professor of Practice in Economics NYU Shanghai "If you don't use a business license or business QR code, the problem could be like financial crime, money laundry, tax evasion, and other loopholes that individual may make themselves subject to, the streamlined of fintech sector meant that China can control and make sure the financial sector is safe, and it does not only rely on private companies like WeChat and Alipay."

For small vendors and owners of mom-and-pop stores, they are worried about the new rules.

MR. TANG Vendor "Before I just used my QR code to receive money, it's something I'm used to. We don't really know much about this new code, we haven't seen anything about it and don't know how to operate it."

According to the latest announcement, users occasionally use QR codes to collect small-sum payments will not be subject to business tax or tighter rules, but offered the option of upgrading to a business one. WSW, CGTN, SH.