China's central bank has issued a new round of long-term licences to non-bank payment institutions, marking a shift in how the sector is regulated.
In essence, the People’s Bank of China (PBOC) granted extended permits to 13 firms, including the payment units of major technology companies such as ByteDance and Huawei.
This change in licensing follows a shift in regulatory policy introduced in 2024, replacing the standard five-year renewal cycle with a more enduring framework aimed at streamlining oversight. The long-term licensing model is part of a general effort to tighten control over the country’s vast digital payments industry.
Consolidation in the context of stricter oversight
While the latest batch of licences has enabled some large firms to continue operating, the PBOC has also declined to renew the permits of six other institutions. This development reflects the regulator’s increasingly selective approach. Moreover, officials from the central bank signalled that non-compliance with updated standards was a key factor in the rejections.
Since third-party payment licences were first introduced in 2011, a total of 271 have been issued. However, following a halt on new issuances in 2016 and subsequent regulatory reviews, the number of valid licences has dropped sharply. As of 10 June 2025, only 169 remain active, which represents a 37.6% decline.
Representatives from PBOC have indicated that the move toward longer-term licences is intended to bring stability and maturity to the payments landscape, with a focus on maintaining compliance and reducing systemic risk in a rapidly evolving market.
