The definition of the concept of third-party cross-border electronic payment services involves three aspects: “electronic payment”, “third-party payment institutions” and “cross-border”. The legal definition of “electronic payment” varies based on different applicable objects. The “non-financial institution” attribute of third-party payment institutions reflects the particularity of their legal definition, and the “cross-border” feature determines the legal coordination of electronic payment services across countries or regions.
In terms of the definition of electronic payment, according to Article 2 of the People’s Bank of China’s “Electronic Payment Guidelines (No. 1) (2005)” (hereinafter referred to as the “Payment Guidelines”), electronic payment refers to the behavior of units or individuals directly or authorizing others to issue payment instructions through electronic terminals to realize monetary payment and fund transfer. The main types include online payment, telephone payment, mobile payment, etc. The objects of the “Payment Guidelines” are domestic banking financial institutions. Third-party payment institutions refer to payment institutions that have certain market reputation and financial strength, are independent of merchants and banks, and provide payment, transfer, settlement and other services to domestic and foreign buyers. They are non-financial institutions, so third-party payment institutions are not within the scope of application of the guidelines.
In terms of the definition of third-party payment services, according to Article 2 of the People’s Bank of China’s “Administrative Measures for Payment Services of Non-financial Institutions” (2010) (hereinafter referred to as the “Administrative Measures”), non-financial institution payment services refer to the provision of partial or full monetary funds transfer services between payees and payees by non-financial institutions as intermediaries, including online payment, issuance and acceptance of prepaid cards, bank card acquisition, etc. Among them, online payment refers to the act of transferring monetary funds between payees and payees based on public or private networks, including currency exchange, Internet payment, mobile phone payment, etc. Therefore, the domestic or overseas payment services provided by third-party payment institutions shall comply with the relevant requirements of the “Administrative Measures”, obtain the “Payment Business License” in accordance with the law, and accept the supervision, inspection and management of the People’s Bank of China (hereinafter referred to as the “Central Bank”).
In terms of the definition of third-party cross-border electronic payment services, according to Article 2 of the “Guiding Opinions on the Pilot Program of Cross-border Foreign Exchange Payment Services of Payment Institutions” (2015) (hereinafter referred to as the “Guiding Opinions”) of the State Administration of Foreign Exchange, the cross-border foreign exchange payment business of payment institutions refers to the centralized collection and payment of foreign exchange funds and related foreign exchange settlement and sale services involved in cross-border Internet payments provided by payment institutions to both parties of e-commerce (trade in goods or trade in services) through banks. Therefore, third-party payment institutions providing cross-border electronic payment services must comply with the relevant requirements of the Guiding Opinions, apply to the State Administration of Foreign Exchange of the People’s Republic of China (hereinafter referred to as “SAFE”) for a pilot program for cross-border foreign exchange payment services in accordance with the law, and accept its supervision and management.
In summary, third-party cross-border electronic payment services should comply with the relevant provisions of the Administrative Measures and the Guiding Opinions. As non-financial institutions providing intermediary services, third-party payment institutions provide cross-country or regional Internet payment services to facilitate trade or service transactions between payees and payees at home and abroad.