19 the license of the payment institution was cancelled, and the main force to withdraw from the market was the prepaid card institution.

On June 26th, the People's Bank of China announced the renewal of the payment business license of non-bank payment institutions (hereinafter referred to as the "Payment License") (the fourth batch in June 2022). According to the information, among the 79 institutions participating in the renewal review, 52 payment institutions successfully passed the renewal, 8 payment institutions were suspended, and the payment licenses of 19 payment institutions were cancelled.

Eight companies stopped renewing their insurance, and 19 companies cancelled.

According to the renewal information, a total of 79 institutions participated in the renewal review, among which 52 institutions including Fujian Guotong Xingyi Network Technology Co., Ltd., Nanjing Suning Yifubao Network Technology Co., Ltd., Beijing Didi Payment Technology Co., Ltd., Shanghai Chengfutong Payment Co., Ltd. and Shenzhen Midea Payment Technology Co., Ltd. passed the renewal review.

There are 8 payment institutions. Due to the circumstances stipulated in Article 24 of the Measures for the Implementation of Administrative Licensing, the People's Bank of China decided to suspend the renewal review. These eight payment institutions include Huichao Payment Co., Ltd., Shanghai Hanyin Information Technology Co., Ltd., Yin Shitong Information Technology Co., Ltd., Jia Lian Payment Co., Ltd., Jiupai Tianxia Payment Co., Ltd., Sinosteel Yintong Information Technology Service Co., Ltd., Jiangxi Tenpay Information Technology Co., Ltd. and Yunnan Benyuan Payment Management Co., Ltd.

19 cancellation of payment institution license. Among them, Huitong Bao Payment Co., Ltd. decided not to accept its application for renewal of payment license because of the circumstances stipulated in Article 17 of the Measures for the Implementation of Administrative Licensing of the People's Bank of China, and refused to renew the payment license. It is understood that Article 17 of the Measures for the Implementation of Administrative Licensing of the People's Bank of China stipulates: "Citizens, legal persons or other organizations applying for administrative licensing from the People's Bank of China or its branches shall truthfully submit relevant materials to reflect the real situation and be responsible for the authenticity of the substantive contents of their application materials." According to industry sources, this is also the first time that a payment institution has been delisted due to this violation.

The institutions 10, such as Shangyinxin Payment Service Co., Ltd., Shanghai Yifu Digital Technology Co., Ltd., Shanghai Commercial High-tech Development Co., Ltd. and Yinxinlian (Beijing) Payment Co., Ltd., will not renew their licenses because they have not submitted their applications for renewal. In addition, eight institutions including Shanghai Xinhua Media E-Commerce Co., Ltd. and Shandong Chenglian One Card Payment Co., Ltd. voluntarily withdrew during the validity period of the payment license.

Compared with the institutions whose 19 was cancelled, 8 institutions whose renewal was suspended still have the possibility of renewal.

The reshuffle of the payment industry continues.

Judging from the results of this renewal review, some institutions choose to withdraw from the market actively, while some institutions withdraw from the market passively, but overall, institutions withdraw from the market actively.

"Judging from the available information, most institutions that have not submitted renewal applications and voluntarily quit hold prepaid card licenses." Wang Pengbo believes that from the perspective of industry development, the rise of mobile payment has promoted the change of business logic in the whole industry. At the same time, the introduction of management regulations related to reserve funds and changes in tax policies have intensified the reshuffle in the field of prepaid card payment. Many prepaid card licensees have not successfully transformed and developed, and their business models cannot be broken, so they have been eliminated by the market.

Su believes that the reshuffle of the follow-up payment industry will continue. "At present, the market structure of the industry's head institutions has gradually stabilized. Some institutions that lack scenes and channel resources, or small and medium-sized institutions with slow transformation in the digital economy background, will gradually withdraw from the market in the future, and the Matthew effect of the industry may be further intensified. "

"The People's Bank of China has always insisted on strengthening supervision and standardizing development, and constantly optimized the structural reform of the supply side of the payment market." Wang Pengbo believes that in the next step, the People's Bank of China will continue to strengthen institutional supervision and promote the healthy development of the payment market.

This article is from China Bank Insurance.