There was a lot of discussion about travel expenses.The third party companies do provide detailed lists of payors, but it can be difficult to upload these into the ERP system. The one complaint all participants had was the difficulty linking this process to internal systems, for the reconciliation of receipts or for compliance purposes in terms of identifying the source of cash.There was no mention of billbacks, the excessively high fees and acquirors which blight the use of credit cards in other countries.One participant did an RFP, with two Chinese and two foreign banks, and found the service was identical – though pricing was different, and not transparent. The collections process using these tools is efficient and effective: you work with a third party (usually accessed via a banking provider), who will transfer the funds to your account the following day.None is using these tools to make corporate payments. Most participants are accepting payment using WeChat Pay and Alipay.This report is based on a Treasury peer Call which explored how this is affecting members’ companies, and how they are adapting to this brave new, digital, world. This is a challenge when there are no credit cards. China has been at the forefront of a lot of digital trends, partly due to the fact it had an antiquated banking system which has been thoroughly modernised, and partly because the explosion of internet shopping in the country required a digital payments solution. Subscribe to Blockworks’ free newsletter now.Cryptocurrency, digital wallets, virtual everything – there is a huge amount of change. Get the day’s top crypto news and insights delivered to your inbox every evening. “You’re creating architecture that gives the government a little bit more insight into transactions.” The key thing here is that the central bank is, I think, inserting itself more into the payment architecture,” he said during the panel. The Chinese authorities support coordinated development of various payment methods.”ĭuring a panel on the topic earlier this year at CoinDesk’s Consensus conference, Yaya Fanusie, a Fellow at the Center for a New American Security, and former CIA counter terror financing analyst, pointed out that China’s push for a CBDC via the eCNY is about gathering as much data as possible - to combat things like tax evasion and illegal gambling amongst other things. This is problematic for any central banker, as they cannot exert the same amount of control on M2 as they can on cash.Īs the People’s Bank of China whitepaper on eCNY explains, the “eCNY will provide the public with a new interoperable way of payment, which will further diversify payment instruments and make the payment system more efficient and safer. Given the two apps popularity in China they control a significant amount of the supply of M2, or commercial bank money. Part of the reason why this announcement generated such considerable interest is because of the expectation that eCNY will eventually replace the payment rails offered by WeChat Pay and AliPay. ![]() Underground casinos would often recruit people to rent their personal payment code to the casino in order to launder funds, in exchange for a cut of the proceeds. Ling also added that the use of personal payment codes was a common scheme for laundering funds from underground casinos. “This not only confuses the nature of the transaction, but also leads to the distortion of transaction information, which affects risk monitoring.” For example, some institutions use barcode transfer services for personal receipts to handle large-scale ,” Tony Ling, a partner at China-based Bizantine Capital, wrote in a note to Blockworks. “The government has decided to strengthen supervision due to the hidden risks of personal payment barcodes. ![]() Instead, the PBoC is mandating that businesses only use business payment codes instead of personal ones - a common scheme for small family-run businesses. ![]() The reality of the situation on the ground is much more mundane. #BREAKING: Mainland China forbids the commercial use of mobile payment apps WeChat Pay and Alipay for money collection, starting on March 1, in order to prevent identity theft and embezzlement via such platform, People’s Bank of China announced.- Ezra Cheung November 26, 2021īut this isn’t happening quite yet.
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