China to Tighten Regulations on Using Online Payment Firms
China is planning to tighten regulations that governs the 270 online payment firms around the nation this including Alibaba Group Holdings finance arm, in order to ensure customers security, information and money. Based on the drafted rules released last July 31st, the central bank will limit the amount an certain individual can pay online up to 5,000 yuan a day using third party accounts.
Unless the identity of the customer can be verified by a security token and electronic signature, where the customer is spending more than the allowed sum consumers will be transferred to a banking payment platform to pay the surplus.
Customers using five methods if verifications are allowed to open a comprehensive account that limits annual online and mobile payments of up to 200,000 yuan a person. Using three to five verification methods a customer can open a consumption account that has a annual online limit of 100,000 yuan.