According to the “non-financial institution payment service administrative measures” issued by the central bank on Sept 1 last year, third-party payment companies must apply and receive the payment business license within one year. For those who have not received the licenses, they will be disqualified from continuing payment business.

Twenty-seven Chinese third-party payment companies received the payment business license on May 26, which includes the well-known Alipay, an affiliated online payment platform to the e-commerce giant Alibaba Group, and China UMS, an affiliated payment institution to China UnionPay.

In August, 131 third-party payment companies were still awaiting the approval from the central bank, including 39 Shanghai-based companies. “What is special about these 131 companies is that most of them are doing prepaid card business, while the first 27 companies which have already received the payment business license are mostly doing online third-party payment business,” Zhang said.

Shanghai-based SandPay received the payment business license in May, but it announced on its official website that it will suspend selling new cards. “The license we obtained has specified that we can carry out payment business only,” said a source from SandPay who declined to give his name.

The source added that the company is still applying for another license but has suspended issuing new cards for the time being. “It’s unclear when we will offer new cards again.”

Consumers can be rest assured that all cards will function normally even after the central bank’s deadline, he added. “The bank has ruled that the related companies will be disqualified from participating in payment business. But they have not said that consumers will not be able to use the card.” The central bank has pointed out that consumption at the stores belonging to the prepaid card issuing companies does not belong to third-party payment.

As Bailian covers quite a large number of stores in Shanghai, consumption is barely affected. Consumers are not showing anxiety as expected. Zhong Wenping, 24, works at Guotai Asset Management Co, Ltd and said she only shops with prepaid cards at supermarkets.

“I have never bought these cards myself. They do not provide any discount. As to the membership points provided by the OK card, it is too complicated for me to understand. I never used them,” Zhong said.

While it is still unclear whether the central government will postpone the deadline and inform third-party payment companies publicly, Zhang, the analyst with Analysys International, is still glad to see that the government is working on the market and coming up with more regulations.

“But it is good to see the central government coming up with some policies to regulate the third-party payment industry. Hopefully some pending problems, such as the issue of the cash reserve ratio, will be solved together this time,” Zhang said.

But scalpers acquiring these prepaid cards seem to be unexpectedly happy recently. A scalper surnamed Du said consumers are hurrying to them and selling their cards at a lower price now.

“Lianhua OK cards used to be acquired at a 3 percent discount. But now people are willing to sell the cards at a 5 percent or even 8 percent discount,” Du said. But the scalpers are careful about the selection of cards. Du said he is only buying better-known cards, such as the Smart cards or Lianhua OK cards, and for amounts less than 1,000 yuan each.