March 25, 2014
China’s trillion dollar mobile payments industry is under attack
Things aren’t looking great for Chinese firms working in the world of mobile payments. The fast-growing trillion dollar industry—which includes online investment funds, virtual credit cards, and e-commerce–is facing new pressure from Chinese regulators and state-owned banks. Quartz reports.
This week, China’s central bank said it is considering placing limits on how much cellphone users can spend via their smartphones. The regulator is also considering requiring online money market funds, like Alibaba’s Yu’e Bao, to begin holding minimum reserves on the deposits they collect.
Over the past few weeks, China’s top four banks, all of them state-owned, have set limits (paywall) on transfers to mobile financial products. And earlier this month, China halted the use of virtual credit cards and QR codes, used for online shopping.
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