Billionaire Jack Ma, chairman of Alibaba Group (center)
Monetary authorities are pushing for the implementation of third-party online payment platforms in Macau following the emerging e-commerce boom across the border, which is associated with consumers’ growing reliance on virtual payment options.
The demand for companies to accommodate this transition of payment methods in the region has grown rapidly according to the authorities, who held an introductory session last Friday. The session aimed to explain the existing regulation supporting such services, as well as the current licensing procedures and qualifications.
Wan Sin Long, an administrative committee member from the Monetary Authority of Macau (AMCM), told journalists that service providers whose clients’ money had already been deposited and paid to them were required to seek authorization to run their business.
That means that payment services provided by companies that are not officially approved by local authorities are not subject to local regulation and there may be risks involved in using them.
Wan said that the regulator has approached the mainland service operators to learn more about their intentions for business development in the region. The aim of such talks is to connect local service providers with their mainland counterparts for a more e-commerce-friendly environment.
In the meantime, AMCM has issued a statement saying that Alipay, which was launched in 2004 by the Chinese e-commerce giant Alibaba Group Holding Limited and is now managed by its affiliated company, is suitable for a local e-commerce platform.
The authorities reassured the public that its operation in Macau was legal through the company’s collaboration with a locally authorized institution.
The provision of third-party payment services in Macau has been a hot topic since last year’s policy address debate. However, it remains arguable that the application thresholds for such operations are usually deemed to be too high for small and medium-sized firms, while the size of the local market fails to pique the interest of large service providers from abroad. Staff reporter
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