China suspends online credit cards, code scanning payments

The People's Bank of China (PBOC), the central bank, has suspended the use of online credit cards and payments via code scanning over security concerns, an official told Xinhua on Friday.

Zhou Jinhuang, vice director of the PBoC's payment and settlement department, said the central bank has issued a notice to suspend Tencent and Alipay's online credit cards, also known as virtual credit cards, and payments by scanning a bar or QR code.

"It's just a suspension, rather than a prohibition," said Zhou, adding that the decision is aimed at regulating business in the sector and safeguarding consumers' interests, not targeting any specific company.

The notice said payments via code scanning and online credit cards are closely linked to consumers' personal information and capital safety, and therefore need further consideration.

China CITIC Bank announced on Tuesday to partner with Tencent and Alipay under Alibaba to issue online credit cards based on code scanning payments.