27 Enterprises Got Third-Party Payment License

News on May 26 said that the Third-Party Payment Licenses have been mailed to relavent enterprises and organizations, which amounted to 27. The private-owned third-party payment enterprises of Tenpay, Alipay and 99bill all received the licenses.

The “Management of Payment Service of Non-Financial Institution” issued by People’s Bank of China last June has clearly required all non-financial institutions to obtain the license for payment business and become payment institutions to be managed and supervised under People’s Bank of China. It is said that only 27 enterprises of 32 that applied the license in the first batch have been approved. Five enterprises, namely, UM Pay, Shanghai Day’s Pass, Shanghai Fuiou, Shanghai Chang-go and Shanghai UnionPay didn’t get licensed.

As the first batch enterprises that awarded the Payment Business Licenses, General Manager of Tenpay, Mr Liu Yingqi expressed “we have been positively following the related national policies. The management and supervision from Central Bank could effectively regulate the market, which is good for the healthy development of the whole industry.” He believes that the granting of Payment Business License is very significant for Tenpay for “it would help us win more approvals from users and merchants.”

Among all the 27 enterprises being licensed in the first batch, Tenpay (under Tencent) and Alipay (under Alibaba) have registered the largest capital of 500 million yuan each. The smallest capital been registered is 30million yuan. And Alipay is the only enterprise that assigns the ICBC to have its customers trading margin audited monthly and reports the result in public every month.

Report from Analysys International showed that the yearly turnover of China’s third party payment market has reached 1.1324 billion, a 95% sequential growth. The market still keeps a high concentration with only two enterprises of Tenpay and Alipay occupies a total 70% market share. Tenpay ranks the second with 22.4% market share.

The researcher Zhang Meng at Analysys International said that the issuance of Payment Business License will give legal positions to payment enterprises which allow the third-party payment business extent to a financial field with stricter policy supervision and higher technical requirements such as fund and insurance market. She predicted that financial service market such as fund and insurance would play a very important role on the development of third-party payment market in next few years, and promote the professional payment services of third-party payment enterprises to higher stages.
Following is the list of 27 enterprises being granted:
Z2000133000019 Alipay (China) Network Technology Co., Ltd, May 18, 2011
Z2000231000010 China UMS Co., Ltd, May 18, 2011
Z2000311000013 Beijing Shangfutong Network Technology Co., Ltd, May 18, 2011
Z2000444000013 Shenzhen Tenpay Technology Co., Ltd, May 18, 2011
Z2000531000017 All In Pay Network Service Inc, May 18, 2011
Z2000611000010 Open Union Network Service Co., Ltd, May 18, 2011
Z2000711000019 Beijing YeePay Information Technology Co., Ltd, May 18, 2011
Z2000831000014 99Bill Information Co., Ltd, May 18, 2011
Z2000931000013 Shanghai Huifu Data Service Co., Ltd, May 18, 2011
Z2001031000010 Shanghai Shengfutong E-commerce Co., Ltd, May 18, 2011
Z2001111000013 Qiandai.com (Beijing) Information Technology Co., Ltd, May 18, 2011
Z2001231000018 Shanghai Easypay Co., Ltd, May 18, 2011
Z2001344000012 Shenzhen Kuaifutong Financial and Network Technology Service Co., Ltd, May 18, 2011
Z2001444000011 Guangzhou ChinaPay Co., Ltd, May 18, 2011
Z2001511000019 Beijing Digital Wangfujing Technology Co., Ltd, May 18, 2011
Z2001611000018 Beijing Unionpay Merchant Services Co., Ltd, May 18, 2011
Z2001731000013 Sand E-commerce Service Co., Ltd, May 18, 2011
Z2001811000016 Yufu Network Technology Co., Ltd, May 18, 2011
Z2001912000014 Bohai Yisheng Merchant Service Co., Ltd, May 18, 2011
Z2002044000013 Shenzhen Yinsheng E-Pay Co., Ltd, May 18, 2011
Z2002131000017 Xunfu Information Technology Co., Ltd, May 18, 2011
Z2002211000010 Chinabank Payment (Beijing) Technology Co., Ltd, May 18, 2011
Z2002346000018 Hainan Xinsheng Information Technology Co., Ltd, May 18, 2011
Z2002431000014 Shanghai SmartPay Information Technology Co., Ltd, May 18, 2011
Z2002511000017 Beijing Lakala Network Technology Co., Ltd, May 18, 2011
Z2002631000012 Shanghai FFT Information Service Co., Ltd, May 18, 2011
Z2002744000016 Shenzhen EKA Technology Service Co., Ltd, May 18, 2011

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  1. […] providers did not alter their VIE structure, but nonetheless obtained the license. In total, 27 firms were issued licenses in the first round of […]

  2. […] to be incompatible with its regulations. Indeed, sources tell iChinaStock that a number of the 27 firms approved in the first round operate in China via the ubiquitous VIE structure, including 99bill. Mr. Ma’s implied […]