Alipay Introduces Stricter Terms of Use in Compliance with New PBoC Rules
Sina Tech, 12/01/16
Chinese third-party payment processor Alipay has announced the Notice on Safeguarding the Security of User Funds by Combating Telecommunication Fraud, a series of usage limitations introduced to comply with new regulations from the People's Bank of China that went into effect today. Among the changes to terms of use, Alipay said it may suspend user accounts registered after December 1 that remain inactive for over six months. Users can reactivate their suspended accounts once they have re-verified their identities with Alipay.
Alipay will also put multiple accounts linked to a single mobile number on notice for closure unless the user provides a reasonable explanation. As the PBoC's new rules also stipulate that online sales, whether by individuals or businesses, of POS machines are now forbidden, Alipay will now no longer allow sellers of POS machines and card readers to accept payment via Alipay.
Editor's Note: The new regulation enacted today was issued by the People's Bank of China on September 30, and is titled "Notice Concerning Increased Regulation of Payment Processing to Prevent New Kinds of Illegal Behavior on Telecom Networks." For more information on this topic, please see "China to Limit Users to One Account Per Non-bank Payment Institution," MD 9/30/16 issue.
Keywords: mobile payment online payment Internet wireless Alipay People's Bank of China third-party payment regulation wireless
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