For people from china, it is so convenient to use mobile payment such as Alipay,Wechat pay etc. However, due to third-party payment is a bank direct-connect transaction, it is hard for central government to monitor.
Therefore, on October 15, all third-party payment platforms such as Alipay, TenPay, WeChat Pay, etc. were required to be relocated to the “Non-bank Payment Institution Network Payment Clearing Platform” (Wanglian) banking transactions under supervision to avoid money laundering or illegal transactions. Due to Alipay, TenPay has the largest 3rd party mobile payment market in China with a share of more than 80%. Therefore, this action has a clear intention for the central government to regulate and control these third-party payments platforms.
Prevent money laundering – Clear money transaction
As the central network becomes the “intermediary” between the third party payment platforms and the banks, all the details of transactions will be under the supervision of the central government. That is, the third-party payment directly linked to the bank will no longer apply. The transaction will be connect to the central government control then link to the different banks to complete the rest of the transaction process. In other words, the transaction information of the public will be transparent, forming a big data storage, analysis and for future monitoring via central government bank
Some analysts pointed out that the change should not affect the general public too much. Conversion rates may also be lowered due to central control. For the central government, due to the fact that the government will receive all the transaction information, collecting financial big data will be easier for the central government to monitor in the future.