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China suspends online credit cards, code scanning payments

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Press Trust of India Beijing
Last Updated : Mar 14 2014 | 3:42 PM IST
China's central bank has suspended the use of online credit cards and payments through code scanning due to security concerns.
Zhou Jinhuang, Vice-Director payment and settlement department of the the People's Bank of China, said the central bank has issued a notice to suspend Tencent and Alipay's online credit cards, also known as virtual credit cards, and payments by scanning a bar or QR code.
According to the notice, payments via code scanning and online credit cards are closely linked to consumers' personal information and capital safety, and therefore need further consideration.
Tencent and Alipay's online credit cards are the most poplar in Chinese house holds.
China CITIC Bank announced on Tuesday to partner with Tencent and Alipay under Alibaba to issue online credit cards based on code scanning payments.
"It's just a suspension, rather than a prohibition," Zhou was quoted as saying by state news agency Xinhua. The decision is aimed at regulating business in the sector and safeguarding consumers' interests, not targeting any specific company, Zhou said.

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First Published: Mar 14 2014 | 3:42 PM IST

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