Proposed limits on third-party payment platforms stir discontent online

Dissatisfaction is bubbling online among Chinese consumers following the announcement of draft rules that could limit individuals’ daily transactions on third-party payment platforms such as Alibaba’s (BABA.NYSE) Alipay to as little as RMB1,000 (US$160), South China Morning Post reported. Third-party payment services that have two or more security measures but don’t provide verification processes will have an RMB5,000 (US$800) limit, while those with less than two security measures will be limited to RMB1,000 (US$160). Larger transactions will have to be processed through online banking. A Barclays report suggested the move will lead to increased consolidation, strengthening the position of major players like Alipay, which already controls 50% of the market.