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China Fund News reporter Yishan

According to the information recently updated on the official website of the People's Bank of China, Wuhan Jinyuanxin Enterprise Service Information System Co., Ltd. (hereinafter referred to as Jinyuanxin Company) had its payment license revoked on July 8.

Cancellation of payment business license

According to information, Jinyuanxin Company is a financial services enterprise focusing on the development and promotion of universal prepaid cards for commercial services and the operation of third-party payment platforms. It is a comprehensive solution provider for corporate services, a value-added service provider for commercial enterprises, and an operator of third-party payment service platforms.

In December 2011, Jinyuanxin Company obtained the "People's Republic of China Payment Business License" issued by the central bank, with the business type of prepaid card issuance and acceptance, becoming the first third-party payment company in Hubei to legally and compliantly operate prepaid card issuance and acceptance. Since then, the license has been successfully renewed in 2016 and 2021, and is valid until December 2026.

According to the official website, Jinyuanxin's products include three categories, namely Hangoutong Card (ordinary card and VIP card), Hangoutong customized card (Pufa, Post, Huaxiang Business District co-branded card, etc.), Hangoutong gift card (crab gift card, moon cake card, cigarette card, wine card, etc.), which are mainly used for corporate employee benefits, business gifts and holiday gifts.

At present, Jinyuanxin Company has more than 3,000 cooperative merchants in 18 different business formats in Hubei Province, covering Wuhan’s major department stores, home appliance and furniture stores, restaurants and hotels, leisure and entertainment, beauty salons, sports and fitness, life services and other industries.

On July 11, Jinyuanxin Company issued an announcement on its official website stating that due to the company's business transformation, with the approval of the central bank, the company will terminate the new prepaid card issuance business from July 12. The company will protect the rights and interests of Hangoutong users and will not be affected by the business transformation.

Seven companies cancelled their payment licenses this year

According to data released by the central bank, as of now, 93 institutions have revoked their payment licenses.

Among them, a total of 7 companies cancelled their payment licenses this year. In addition to Jinyuanxin Company, in June this year, Beijing Digital Wangfujing Technology Co., Ltd. was approved to be merged with Beijing Lifangtong Payment Technology Co., Ltd., and its license was cancelled after the merger was completed; in May, Ping An Pay Technology Service Co., Ltd. was approved to be merged with Ping An Pay Electronic Payment Co., Ltd., and its license was cancelled after the merger was completed.

In addition, Guangzhou UnionPay Network Payment Co., Ltd., Shenzhen UnionPay EasyBanshi Financial Services Co., Ltd., and Yinshitong Information Technology Co., Ltd. had their licenses revoked on May 23, May 17, and May 11, respectively, and Shenzhen UnionPay Financial Network Co., Ltd. had its license revoked on January 10.

The business types whose licenses were revoked mentioned above mainly include bank card acquiring, digital TV payment, Internet payment, prepaid card acceptance, etc.

In this regard, an industry insider in Beijing said that there are two main reasons why companies chose to cancel their payment licenses this year: one is to respond to the new regulations on non-bank payments, that is, the same actual controller cannot control two or more non-bank payment institutions of the same business type, and choose to cancel or merge the license. The other is that with the rise of mobile payments, some companies have actively chosen to transform and cancel related licenses after their business shrinks and profitability declines.

"This is both the normal survival of the fittest under market competition and the result of the industry's continuous standardization and healthy development." The person believes that driven by relevant policies and laws and regulations, the payment market will continue to move towards high-quality development and will better assist the development of the real economy and improve people's livelihood.

Editor: Joey

Reviewer: Chen Siyang

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