The Development and Regulation of Mobile Payment: Chinese Experiences and Comparative Perspectives

Washington University Global Studies Law Review, Forthcoming

The Chinese University of Hong Kong Faculty of Law Research Paper No. 2021-02

43 Pages Posted: 20 Jan 2021 Last revised: 29 Jan 2021

See all articles by (Robin) Hui Huang

(Robin) Hui Huang

Chinese University of Hong Kong - Faculty of Law; 华东政法大学(East China University of Political Sicence and Law); University of New South Wales - Faculty of Law

Abby Oi Ling Lam

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Anthea Wing Ting Yu

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Christine Meng Lu Wang

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Date Written: November 2, 2020

Abstract

China has become one of the leaders in the global mobile payment market in terms of market volume, growth rate, and innovation capability. This can be attributed to a number of enabling factors, including technological advancement in China and mobile payment’s competitive advantages and wide acceptance by the Chinese people. Mobile payment brings significant benefits as well as various risks and thus should be regulated in a way that reaps its benefits while containing those risks. This article critically examines China’s regulatory regime for mobile payments, focusing on several key elements such as the entry and exit mechanism, management of customer reserves, anti-money laundering measures, and consumer protection. A comparative study is also conducted on the regulation of mobile payment in several major jurisdictions, including the US, the UK, Singapore, and Hong Kong. Then, this article analyses the strengths and shortcomings of the Chinese regulation and, based on international experiences, makes relevant improvement suggestions. China is advised to enact a unified law specifically for mobile payment and adopt a more nuanced risk-based approach in setting out regulatory requirements. There is a need to address the negative effects on competition in the mobile payment market that may be brought by the high entry threshold and the centralized clearing mechanism. China should also streamline the enforcement aspect of its regulatory regime and pay particular attention to important issues of consumer protection such as data protection.

Keywords: mobile payment, Fintech, consumer protection, China, comparative study

JEL Classification: K22, G23

Suggested Citation

Huang, (Robin) Hui and Lam, Abby Oi Ling and Yu, Anthea Wing Ting and Wang, Christine Meng Lu, The Development and Regulation of Mobile Payment: Chinese Experiences and Comparative Perspectives (November 2, 2020). Washington University Global Studies Law Review, Forthcoming, The Chinese University of Hong Kong Faculty of Law Research Paper No. 2021-02, Available at SSRN: https://ssrn.com/abstract=3723472

(Robin) Hui Huang (Contact Author)

Chinese University of Hong Kong - Faculty of Law ( email )

Shatin, New Territories
Hong Kong
852-39431805 (Phone)
852-29942505 (Fax)

HOME PAGE: http://www.law.cuhk.edu.hk/app/people/prof-robin-huang/

华东政法大学(East China University of Political Sicence and Law) ( email )

1575 Wanhangdu Rd.
Changning, Shanghai 200042
China

University of New South Wales - Faculty of Law ( email )

Sydney, New South Wales 2052
Australia
61-2-9385 9649 (Phone)
61-2-9385 1175 (Fax)

Abby Oi Ling Lam

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F, Lee Shau Kee Building
Shatin, New Territories
Kowloon, Sha Tin
Hong Kong

Anthea Wing Ting Yu

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F, Lee Shau Kee Building
Shatin, New Territories
Kowloon, Sha Tin
Hong Kong

Christine Meng Lu Wang

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F, Lee Shau Kee Building
Shatin, New Territories
Kowloon, Sha Tin
Hong Kong

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