Key Points of Supervision of Third-Party Payment Business: A Comparative Analysis of Mainland China and Macao

Abstract

Mainland China has witnessed remarkable achievements in payment innovations based on internet and financial technologies in recent years, whereas Macao has made little progress in financial technologies, especially in payment technologies. Based on the concept and types of third-party payment business in mainland China and Macao, as well as to investigate the causes for Macao’s lack of innovation in third-party payment, this study compares their differences from two aspects: business licensing authorities and key points of supervision. By comparison, although the classification and methods of third-party payment businesses are different between mainland China and Macao, they are all managed and licensed by a unified supervision department. Moreover, the key points of supervision in both places are similar, but unlike mainland China, which takes financial risk prevention as the principle and financial technology as the means to encourage innovation, Macao showed obvious deficiencies. In order to further deepen the connection between the financial markets of mainland China and Macao as well as boost financial technologies in Macao, this study aims to provide some suggestions and references for the development of cross-border payment systems.