BUSINESS

People’s Bank of China unveils new payment system

TAGs: banking, China, online payment processing services

china bankThe People‘s Bank of China will release a
new online payment system at the end of August

“Super online payment” will start –up in a few days, and presently many banks are ready for the next step and to connect with this new online payment method.

Convenient for the customer

According to the super online payment schedule, the People’s Bank of China will connect with all kinds of commercial bank, and between September and November training, conducted by the People’s Bank of China, will commence at a number of different commercial banks. This will all culminate in the launch of the “super online bank” at the end of November.

According to the report, the best advantage of “super online bank” is achieving real-time Internet bank to bank transfers and interbank balance inquirys. In a word, when the customer has logged in to a commercial bank personal account, they can check the balance of time deposits, demand deposits, funds, or financial products.

“At present, many commercial banks have differences in standard process procedures, and the customer needs to download the security active program; which is more complex for the customers,” a financial specialist said. “When the “super online bank” starts up it will persuade more people to use the online bank as it’s more convenient for daily life!”

Although the “super online bank” takes the convenient service to the people, there’s still a number of security risks: “using the phase 1 online bank, a hacker would need to get all the different commercial banks personal account info, but in phase 2, the hacker would only need to get the information from one commercial bank about the customer and they will get all the money from the account concerned.”

So although the new system is easier, it does still present a significant security risk.

But there’s a different in opinion when you ask other financial specialists, who believe there’s no need worry more about the new system. Another specialist gave a different slant on the story, and commented: “once all the commercial banks change to a standard management procedure, the software developer just needs to protect this bank system using all the sources and technology, in terms of different bank and different standard procedure.” This suggests the customer has no need to worry about the new “super online bank” system.

For banks, capital will be used more efficiently

The People’s Bank of China published statistics data about the payment system and they said: “When the phase 2 online banking system has started up, we will have more customers using the online bank, and start-up capital will be more efficient than before.” The financial specialist said this will release the People’s Bank of China, expanding the money supply with the capital, using a efficiently improved base on the exact capital amount.

It will provide a better service for third party transactions

When the People’s Bank of China start up phase 2 of the online bank system, third party transactions will be ready to get a “payment license” for them. The phase 2 online bank system will then be open to these non-official finance payment organizations, but the necessary condition is they need to get the “payment license” before start up.

The law will be published by Sep.1.2010, and the third- party transaction providers will need to get the license within a year.

A manager of one third party transaction company said: “the online third-party transaction business is based on the online bank service, and once the third-party transaction company connects with the phase 2 payment system, the service will be better than before. But if you don’t connect with the phase 2 payment system, the third-party transaction service will not be affected in daily business.”

A manager from the People’s Bank of China said: “we are open for the third-party transaction service company, so once they get the “payment license” for the phase 2 payment system, then they can work with us immediately.”

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