Growth of E-Payment Prompts PBOC to Probe, Punish Sellers Spurning Cash
Dou Shicong
DATE:  Dec 06 2018
/ SOURCE:  yicai
Growth of E-Payment Prompts PBOC to Probe, Punish Sellers Spurning Cash Growth of E-Payment Prompts PBOC to Probe, Punish Sellers Spurning Cash

(Yicai Global) Dec. 5 -- Rejections of cash payments by some sellers have stirred consumer ire as mobile payment becomes ever more entrenched in China.

The country's central bank has recently investigated and punished offending companies, including Chinese e-commerce leviathan Alibaba Group Holding's new retail supermarket Hema Fresh, the country's official newspaper People's Daily reported.

The People's Bank of China launched its investigation after receiving claims of the company's refusal to take payment in Chinese yuan currency. 

PBOC found that buyers cannot pay in notes and coins when shopping at the supermarket but must use its smartphone app, which inconveniences those who prefer physical money, above all the elderly. The bank has ordered Hema Fresh to correct this practice. The company has cooperated and already set up functioning cash payment channels, per the report.

Of the 602 sellers caught declining cash, 558 have now rectified, while the other 44 are doing so. "We encourage the mutual development of diverse payment methods and not only support the growth of the new retail sector, but also guarantee the use of cash, as well as consumers' right to independently choose," PBOC said.

The central bank will publicize this policy and educate sellers to stop such refusals in future, the report noted.

Editor: Ben Armour

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Keywords:   PBOC,Hema Fresh