This Authority noted the relevant media coverage today regarding the usage of Alipay in Macao and would like to clarify as follows: 1.Residents or companies in Macao may use Alipay accounts to make payments in the Mainland or other places, and such payments are not subject to the financial regulations of Macao. 2.In accordance with Articles 2 and 17 of the Macao Financial System Act approved by Decree-Law no. 32/93/M of 5 July, provision of payment services and issuance and management of payment instruments are subject to prior authorization. Moreover, in accordance with Article 12 of the Foreign Exchange Regime approved by Decree-Law no. 39/97/M of 15 September, any fund transfers from or to other places for trade settlement or for other funding activities should only be carried out by authorized credit institutions in Macao. 3.Overseas payment services companies can apply for authorization to establish an institution to carry out payment activities in Macao. On the other hand, authorized financial institutions in Macao, upon obtaining approval of this Authority, can cooperate with overseas payment services companies to launch overseas payment services or products in the local market, and such services or products are provided directly by those authorized financial institutions to their customers. Under such circumstances, the overseas payment services companies cooperating with authorized financial institutions in Macao are not required to obtain authorization by themselves. 4.Although the reported payment services company (i.e. Alipay) is not an authorized institution to engage in payment activities in Macao, it is currently cooperating with an authorized financial institution in Macao for launch of its payment services to merchants. Their cooperation has been duly approved by this Authority and does not violate any regulations in Macao. Upon launch of such services, it is legal for residents or institutions in Macao to use Alipay accounts for payments in these merchants.
