Dacheng Advises Zhengjiang KJT on Acquiring PBOC Third-party Payment Business License

On July 10 2013, People’s Bank of China (PBOC) published the list of the fifth batch of companies granted third-party payment business licenses on its official website. This time, the central bank gave permissions to thirty-eight companies in China, including Zhengjiang Kuaijietong Network Technology Co., Ltd. (“Zhengjiang KJT”), which was advised by Dacheng.
 
In May 2012, a team led by Dacheng senior partner Xu Yongqian won the bid for advising Zhengjiang KJT on third-party payment business. The two sides entered into a contract of service in which it was agreed that Dacheng would offer legal advice, devise a sound anti-money laundering mechanism, an internal control system and a legal risk management system for the company, draft and review files needed for acquiring business license and contact relevant government agencies. The year-long service rendered by attorney Xu Yongqian and his colleagues, for which they exhibited their expertise, industry and strong communicative abilities, won clients’ trust and created value for them.
 
Third party payment services refer to capital transfer services provided by non-bank institutions who act as agents between the seller and the buyer. These services include online payment, issuance and processing of prepaid cards, acquiring bankcard payment, etc. According to PBOC regulations on non-bank payment service which took effect on September 1, 2010, the third-party payment service provider should apply for a license from the central bank pursuant to prescribed procedures before conducting payment business. So far, 250 companies have been granted business licenses.