OREANDA-NEWS. August 22, 2013. Rural Mobile Payment Forum was convened in Beijing. The forum was hosted by the Payment and Clearing Association of China (PCAC) and co-organized by Visa.

It takes mobile payment facilitating inclusive finance as the theme in order to explore the utilization of innovative mobile payment technologies to promote the leap frog development of rural financial services in China, and benefit the vast rural areas with E-payment. Deputy Governor Liu Shiyu attended the meeting and delivered a speech.

He said that the booming internet-based finance provides an effective means for enriching the inclusive financial system in a creative way and realizing inclusive growth in rural areas. As an important part of internet-based finance, internet-based payment and mobile payment can improve rural environment for financial services. There are successful business models and experiences in other parts of the world. In some African and Southeast Asian countries, mobile payment has become a major instrument for small-value remittance and transfer to local rural residents, making up for insufficient financial infrastructure and substituting traditional bank outlets. This innovative development offers an important reference to China.

Mr. Liu indicated that since reform and opening up, China’s economy has maintained rapid and sound development, and the financial market is highly motivated for innovation. The market is playing an important role in efficient allocation of resources. But the economy has also been characterised by urban and rural dual structure and regional imbalances. In terms of payment services, the vast rural areas in China suffer from weak financial infrastructure and inadequate financial services to varying degrees. Based on internet-based finance, the mobile payment is efficient, low-cost, simple and convenient, and can meet the demand for financial services in rural areas.

He also emphasized that in 2012, the PBC worked with related agencies to launch the pilot program of mobile payment in rural areas, encouraged financial institutions and payment agencies to explore their business models for the purpose of providing efficient and low-cost payment service to farmers in the poverty-striken areas. Mobile payment has a good prospect in supporting poverty alleviation, providing convenient services and promoting inclusive growth in rural areas. However, it requires joint efforts of many parties to explore and turn this prospect into reasonable business models, and to realize the development of rural payment business and financial sustainability.

First, innovation and market choice will be respected. It is necessary to respect the innovative spirits of market participants, allow the coexistence of various business models, and allow them to be tested in the market. Banks and payment agencies are encouraged to use their advantages, strengthen cooperation, and innovate new financial products and services. Efforts will be made to explore the integration of mobile payment, financing and credit business, enable the internet-based finance to play a positive role in alleviating financing difficulties of rural borrowers and small- and micro-sized enterprises, and to meet the demand for rudimentary rural financial services in diversified ways. Second, the improvement of fundamental financial services in rural areas should be taken as a priority in the development of an inclusive financial system. Based on the features of economic development and the way of life in rural areas, rudimentary financial services will be provided, such as small-value transfer, remittance, cash withdrawal and payment of rural subsidies. Third, risk management will be strengthened to guarantee security. From the perspective of safeguarding farmers’ interests, efforts will be made to strengthen the security of payment services, and enhance the capacity of risk prevention to provide rural residents with safer, lower-cost and more convenient instruments for financial transactions.

At the forum, representatives from commercial banks, payment agencies, Visa and other international card companies, and the academia spoke on specific topics. Representatives from more than 200 enterprises in the payment and clearing sector and media attended the forum. The participants had in-depth discussions and exchanges on the philosophy and approaches of development of mobile payment in rural areas, and shared the latest practice of mobile payment development. The event is expected to promote the development of mobile payment and improve financial services in rural areas.