Payments

Daily Review: China Opens Its Payments Market for Foreign Competition

MEDICIGlobal Head of Content

China’s two largest e-commerce companies (although very diversified) have a notoriously strong grip on the payments market. In an attempt to promote competition and best possible outcome for the end-user, China’s central bank takes steps towards creating a more inviting environment with lower barriers for entry for foreign third-party providers. It is unlikely that anyone will be able to shake the duopoly in the next few years, but the regulations can certainly contribute to certain harmonization and the emergence of new opportunities for startups in the country.

Pick #1. PBOC Sets out Rules for Foreign Third-Party Payment Firms to Operate in China

China’s central bank is opening the country’s domestic market to foreign third-party electronic payment firms, in a move intended to promote competition in the retail payments industry. Foreign third-party firms will be required to set up a local business in order to apply for a payment services license.

The PBOC notice also requires foreign third-party electronic payment firms to store client data and other financial information in China. The rules mirror central bank regulations for foreign bank card companies seeking licenses to operate in the domestic market.

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Pick #2. UK Digital Bank Launches a ‘Disposable’ Virtual Card That Renews Your Details Each Time You Pay to Prevent Fraud

The mobile-only banking service has unveiled a “disposable” virtual card that wipes a user’s card details and introduces new details each time they make a payment.

“There is this case where every online shop saves your card details to simplify transactions but your data can be compromised and your card details leaked. What happens (with the new feature) is, every time you make a transaction, we delete the card details so it’s impossible to make any transaction after that.” – Vlad Yatsenko, CTO & Co-founder of Revolut

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Pick #3. Customers At Participating Shell-Branded Retail Stations in the US Can Now Pay at the Pump and in Store Using Mobile Payment with Chase Pay

Millions of consumers of participating Shell-branded retail sites in the US are now able to pay for fuel with their mobile devices, using either the Shell app or the Chase Pay app.

When using the Shell app or Chase Pay app to fill up, customers simply pull up to the pump, enter their pump number, and receive a three-digit code to enter into the dispenser to refuel. Customers using mobile payment through the Shell app or the Chase Pay app at participating Shell-branded stations in the US can earn both Chase’s Ultimate Rewards® with eligible Chase credit cards and savings with the Fuel Rewards® program.

Customers can also make purchases using the apps inside Shell convenience stores.

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Elena Mesropyan

MEDICIGlobal Head of Content

Global Head of Content, MEDICI

Elena is a research professional with a background in social sciences and extensive experience in consumer behavior studies and marketing analytics. She is passionate about technologies enabling financial inclusion for underprivileged and vulnerable groups of the population around the world.