The people’s Bank of China (PBOC) has called on the country’s main antitrust Agency to study the market dominance of Alipay and WeChat Pay in the payment services sector.
China’s Central Bank is dissatisfied with payment giants.
According to Reuters, the two payment giants have a major share in the non-cash payments market in China. In the third quarter of 2019, about $ 8 trillion was recorded in the Chinese mobile banking sector. Of these, Alipay owns 55%, and wechat Pay owns 39%.
Recognizing the economic consequences of the monopoly, the people’s Bank of China, while fast-tracking the development of its digital yuan, wants a level playing field for all interested parties, despite the large market share it has, since it banned all BTC-related transactions back in October 2019.
The NBK’s call to the country’s antitrust Agency has similarities to a hearing that the American company Big 4 Tech held with The house of representatives antitrust Subcommittee. The grilling session actually led to lawmakers accusing companies including Amazon, Apple, Facebook and Google of using anti-competitive practices to suppress other smaller competing firms.