The People's Bank of China, China's central bank, recently announced that third-party payment companies will have to route their transactions through a centralized clearinghouse for online payments, which indicates the central authority is enhancing its supervision on third-party payments.

All third-party payment companies will have to be connected to the clearinghouse, the Online Settlement Platform for Non-Bank Payment Institutions, before Oct 15.

The new requirement for online payments is expected to enhance the security of transactions and create a safer online payment environment for customers. In addition, it will help prevent illegal financial activities such as money laundering and enhance the country's financial stability.

The Online Settlement Platform for Non-Bank Payment Institutions is owned by a number of major institutions, including not only the organizations under the central bank, but also some online payment companies such as Alibaba affiliate Ant Financial and Tencent affiliate Tenpay.