China’s central bank, the People’s Bank of China (PBOC), has issued long-term licences to 13 non-bank payment firms, including major tech companies like ByteDance and Huawei.

Shift in Regulatory Policy

This move marks a change from the previous five-year licence renewal cycle. The new framework aims at more comprehensive oversight of China’s expansive digital payments sector.

In 2024, regulatory policies were adjusted to adopt this enduring licensing model as part of broader efforts to strengthen control over the industry.

Outcomes and Trends

Some large firms have been granted renewed licences, while six others had their permits revoked. This selective approach reflects a stricter compliance focus by the PBOC.

The number of valid third-party payment licences has significantly decreased since 2011. From an initial issuance of 271, only 169 remain active as of June 10, 2025, marking a 37.6% decline from the original figure.

The PBOC’s move towards longer-term licences is aimed at enhancing stability and maturity in the payments landscape while ensuring compliance and mitigating systemic risks.