(Yicai Global) Dec. 28 -- The People's Bank of China introduced plans to regulate QR code payments to contain risks arising from the popular remittance method, state-run Xinhua News Agency reported.
The central bank's Specifications on Barcode Payment Service are the first detailed rules on two-dimensional barcode payment methods and will apply to all services that use them, including the ones Alibaba Group Holding Ltd., Tencent Holdings Ltd. and China UnionPay Co. operate.
Banks and payment institutions will have to impose limits on individuals' two-dimensional barcode payments.
Many small businesses post static codes that users scan to make a payment. Individuals will be allowed to transfer at most CNY500 (USD76.43) per day with static barcodes, which lack dynamic safety features and are vulnerable to security breaches.
Payment institutions shall conduct background control on risks regarding businesses' limits, said Zhao Yao, a researcher at the Research Center for Payments & Settlements of the Institute of Finance and Banking.
Many stores and supermarkets use dynamic codes for collecting payment. They are safer as the system generates a new code for each transaction. Customers will be able to spend up to CNY1,000 or CNY5,000 per day with these barcodes depending on how many transaction verification factors they use.
Transaction authentication methods include payment codes, authenticated digital certificates and electronic signatures, one-time passwords and biometric verification, said Zhao.