Chinese regulators set daily limit of $76 on mobile spending made using barcode scanners

29 December 2017

According to the report published by Financial Times, regulators in China are introducing the regulation to impose restrictions on mobile payments made with the use of scanning features, which may have adverse effect on the business of Alipay and Tencent, largest mobile payment services operators in the country.

The People’s Bank of China is placing daily limitations on the amount of money that could be spent using barcode scanning mobile payments. While the central bank acknowledges the contribution made by the barcode systems into the financial inclusion nationwide, the services raise concern of the government over absence of regulations in place posing ‘hidden dangers’ alongside with the unfair competition practices.

The new regulation establishes the daily limit at the rate of $76 to be spent by one user a day with additional restrictions imposed on the users without verification.

In 2016 the volume of mobile payments processed by third parties in China reached $5.5 trillion with the growth gaining momentum under the leadership of Alipay and WeChat. Particular concern for the government is caused by static QR codes, which allow parties to hide their identity and share the codes anonymously. Static QR codes allow payment companies find loopholes in the ‘know your customer’ policies, the Chinese regulators believe.

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