19 July 2019

Third-party payment providers cornered in P2P policy, paper says

Using third-party payment services to transfer funds into and investing in online peer-to-peer (P2P) lending platforms may no longer be a viable option, as the People’s Bank of China’s latest policy has suggested restricting the transaction amount for P2P-related third-party payment service to 1,000 yuan each time and no more than 10,000 yuan a year for a user, the 21st Century Business Herald reported Thursday. The new policy is set to have a huge impact on both the P2P industry and third-party payment service providers. At present, over 90 percent of P2P services are cooperating with third-party payment service providers, while only a small proportion of the operators are working with banks on fund transfers, the report noted. Meanwhile, commercial banks have begun to evince more interest in tapping into the business. Shanghai Pudong Development Bank Co. Ltd. (SPDB, 600000.CN) and Ping An Bank Co. Ltd. (000001.CN) have made contact with to discuss fund custody and payment settlement services, while Bank of Communications Co. Ltd. (03328.HK, 601328.CN) is said to have been in touch with

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