Regulations Take Effect in China to Limit Risk of Static QR Codes Used by Alipay, WeChat Pay and Others

Apr 4 2018

NFC TIMES Exclusive Insight – Daily limits on QR code- and bar code-based transactions in China have taken effect–mainly hitting Ant Financial and its rival Tencent Holdings­, providers of respective digital payments services Alipay and WeChat Pay.  

The previously announced regulations by the People’s Bank of China also were expected to curtail or prohibit some types of money-losing subsidies that Ant Financial and Tencent have been giving to merchants to build market share. 

One of the main regulations that took effect on Sunday set a daily limit of 500 yuan (US$ 79.53) for transactions by a consumer involving scanning of static QR codes, which millions of merchants display at restaurants, small shops and vendor stalls. The printed QR codes are a security risk, with fraudsters sometimes able to divert the transactions to fake merchant accounts. 

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