The People’s Bank of China (PBOC) will require payment platforms to allocate as much as 50% of their total client funds in a regulated interest-free reserve.

Additionally, the PBOC also said it would regulate QR code payment to reduce growing concerns about risks related to these types of transactions.

The new regulations will have an impact on payment platforms like Alipay and Tencent.

According to these new regulations, payment platforms are required to obtain official permits to offer barcode-based payment services and will need to set aside between 42 to 50% of their total client funds in a reserve. The new regulations, which are set to go live in April, could cost the Asian industry more than $689 million a year, according to a Reuters article.

Read more at Reuters, NYTimes and Xinhuanet. 

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