China Blocks Alibaba, Tencent Plan for Virtual Credit Cards
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China’s central bank blocked plans by Tencent Holdings Ltd. and an affiliate of Alibaba Group Holding Ltd. to offer virtual credit cards as the government moves to tighten restrictions on online financial products.
The suspension of virtual credit cards and so-called Quick Response codes is meant to regulate the Internet finance industry and protect consumers, Xinhua News Agency said, citing Zhou Jinhuang, deputy head of the People’s Bank of China’s payment and settlement department. The virtual cards would have let consumers buy goods from online retail websites on credit.