China's central bank to standardize QR code payment

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China's central bank on Wednesday announced plans to regulate QR code payment to contain risks arising from the popular service.

According to a document released by the People's Bank of China (PBOC), payment institutions will be required to obtain proper permits to offer bar-code-based payment services as per the proposed regulations.

Both banks and non-banking payment institutions will channel cross-bank transactions involving bar codes through the clearing system of the PBOC or other legal clearing houses, it said.

The new regulations call for institutions to enhance their security for preventing data breaches.

The People's Bank of China /VCG Photo

Paying through QR code is becoming increasing popular and common in China. By scanning QR codes at convenience stores, subway stations or street vendors, people can buy almost anything.

The number of China's mobile payment users has exceeded 520 million, according to Ant Financial, Internet company Alibaba's financial affiliate.

But the growing popularity of the payment method has also 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 from April next year.

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Source(s): Xinhua News Agency