Chinese Payment Clearing Platform to Unify QR Code Standards, Compliance Will Be Voluntary
Dou Shicong
DATE:  Sep 18 2017
/ SOURCE:  Yicai
Chinese Payment Clearing Platform to Unify QR Code Standards, Compliance Will Be Voluntary Chinese Payment Clearing Platform to Unify QR Code Standards, Compliance Will Be Voluntary

(Yicai Global) Sept. 18 -- NetsUnion Clearing Corp., a non-banking payment clearing platform set up by the Payment & Clearing Association of China, is currently compiling a set of uniform standards for QR codes, though it remains unclear when they will be released, Chinese newspaper The Economic Observer reported on Sept. 15.

The new code system covers payment, transfer and hyperlink codes. Technical details are consistent with the QR codes developed by China's two leading third-party payment service providers, Tencent Holding Ltd.'s [HKG:0700] WeChat Pay, and Alipay, developed by Alibaba Group Holding Ltd.'s [NYSE:BABA] finance affiliate Ant Financial, so the introduction of the new standards is relatively easy in this respect, said a technician at NetsUnion.

The new system will allow the use of QR codes across different payment platforms, he explained. For example, WeChat Pay will be able to recognize QR codes generated on Alipay, enabling users to shop on Alibaba's e-commerce site Taobao using their WeChat Pay accounts.

Companies will not be enforced to comply with the new code standards, and they can decide whether or not to adopt them, so there remains a deal of uncertainty regarding their popularity. The market leaders may want a bigger say in developing industry standards.

NetsUnion Clearing started clearing operations in June 2017. Seven payment institutions and 12 banks have joined so far and its largest shareholder is China's state bank, the People's Bank of China, with a 37 percent shareholding. Cai Hongbo, executive vice president of the Payment & Clearing Association of China, currently serves as its chairman.

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Keywords:   Payment & Clearing Association of China,QR Code,Alipay,WECHAT PAY,New Products