PBOC issues e-payment licenses

China's central bank has finally issued long-awaited electronic payment licenses to 27 qualified third-party payment platforms.

The first batch of 27 non-financial institutions include Alipay and Tencent's Tenpay. The companies are now authorized to continue receiving Internet and mobile payments and issuing prepaid credit cards. For companies who fail to obtain a license before September 1st this year, the deadline announced by the central bank, they'll have to discontinue their e-commerce transactions.

Mr. Liu is the manager of an Internet company. Since his company is planning to expand to the group purchase business, he has been focussing on which e-payment company to choose for his company.

Liu Zhenqi, Manager of Internet Company said "A third-party payment institution has to be involved into a group business company. It will then become our partner."

When the People's Bank of China announced the 27 licensed third-party e-payment companies, Mr. Liu finally made his choice. Insiders say the selection of qualified institutions will make the third-party e-payment market better organized, transparent and more reliable.

Guan Guoguang, CEO of 99bill.com said "To China's e-payment industry, the issuing of licenses is a major event. It will encourage a healthy and regulated market and will bring about explosive growth."

China's online payment market has been growing at an astounding speed, at an annual rate of over 100 percent over the past five years. The sector was worth around 365 billion yuan in the first quarter this year.

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