Recently, China UnionPay Co., Ltd. issued an announcement to terminate the membership of three payment institutions. This news has sparked widespread concern and controversy.
1. Bailian Youli and Tengfutong: the parent company's operating problems dragged down.
Bailian Youli (Beijing) Investment*** and Shenzhen Tengfutong Electronic Payment Technology*** are member institutions of China UnionPay, however, due to the operating problems of the parent company, these two payment institutions are in trouble. Bad debts have snowballed, and they are eventually unable to repay their debts, and they have been listed by the court as executors, dishonest judgment debtors, and high limits by the court many times. This series of problems forced China UnionPay to terminate their membership.
2. Guangdong Xinhui: Deeply involved in the money laundering turmoil.
Guangdong Xinhui E-commerce is also one of the member institutions of China UnionPay, however, it has fallen into a serious money laundering scandal. CCTV has reported it as a typical case many times, and most of the relevant personnel are under arrest and awaiting arrest. This serious violation forced China UnionPay to terminate its membership.
3. The cancellation of the license of the payment institution has caused controversy.
With the cancellation of the licenses of these three payment institutions and the occurrence of major operational problems, China UnionPay terminated their membership according to the corresponding circumstances. The move sparked widespread controversy. On the one hand, some people believe that this is an affirmation of China UnionPay's regulatory capabilities, which will help maintain the order and stability of the payment marketOn the other hand, there are also questions about whether China UnionPay's decision-making is too harsh and whether these institutions should be given more opportunities to rectify and develop.
4. Institutions that have not been terminated should maintain compliance development.
For payment institutions that have not been terminated, they should learn from this incident and maintain compliance to avoid serious violations. Only through compliance can we win the trust and support of the market and achieve sustainable development.