China Fines Yinsheng $2.3 Million as Crackdown Deepens on Payment Sector
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This is the third time Yinsheng has received a penalty exceeding 10 million yuan
China’s central bank has fined Shenzhen Yinsheng E-PAY Technology Co. Ltd. roughly 15.8 million yuan ($2.3 million) for regulatory breaches, issuing the first major industry penalty of 2026 as it tightens scrutiny over the country’s third-party payment industry.
The penalty was announced by the Shenzhen branch of the People’s Bank of China (PBOC), which cited violations in merchant, clearing, and account management practices. The company’s chairman, surnamed Chen, was also hit with a warning and a personal fine of 610,000 yuan.
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- China’s central bank fined Shenzhen Yinsheng E-PAY Technology 15.8 million yuan ($2.3 million) in 2026 for regulatory and AML violations, with the chairman fined 610,000 yuan.
- Yinsheng’s license renewal is uncertain due to repeated offenses; it’s been fined over 10 million yuan three times since 2018.
- The number of licensed third-party payment firms fell from 271 to 163, amid intensified scrutiny and a record 12 cancellations in 2025.
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Who’s Who
- Shenzhen Yinsheng E-PAY Technology Co. Ltd.
- Shenzhen Yinsheng E-PAY Technology Co. Ltd. is a Chinese third-party payment firm founded in 2009. It holds a full-range business license for internet, mobile, and bank card payments. The company has faced multiple large fines from the People's Bank of China for regulatory breaches, including anti-money laundering failures and inadequate identity checks. Its operating license is due for renewal in May, but given its history of offenses and tightening regulations, renewal is uncertain.
- Ruijinxin
- Ruijinxin was a licensed third-party payment firm in China. It is mentioned among the companies that have recently exited the market, indicating that its license was likely canceled. This comes amidst a broader trend of tightening regulations and increasing license cancellations in China's third-party payment industry.
- Kaidianbao
- According to the article, Kaidianbao is a former third-party payment firm in China. It is mentioned as one of the "longtime players" that have recently departed the market as the number of licensed third-party payment firms has consolidated due to stricter regulations.
- Alipay
- Alipay is a major player in China's third-party payment industry. The People's Bank of China (PBOC) placed Alipay under direct anti-money laundering (AML) supervision by its headquarters in 2025 as part of a regulatory crackdown on payment institutions.
- Tenpay
- The article states that Tenpay, alongside Alipay, was placed under direct anti-money laundering (AML) supervision by the People's Bank of China's headquarters in 2025. This action is part of a broader regulatory crackdown on payment institutions by the central bank.
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What Happened When
- 2016：
- Yinsheng previously renewed its payment operating license.
- June 2018：
- Yinsheng was fined about 22.48 million yuan for processing transactions linked to illegal cross-border platforms and unauthorized outsourcing.
- 2021：
- Yinsheng renewed its payment operating license again.
- March 2022：
- Yinsheng was fined a similar sum for inadequate identity checks and failure to report suspicious activity.
- 2024：
- Tighter rules for payment institutions were introduced, enabling long-term licenses for firms with clean records and expedited revocation for violators.
- March 2025：
- Yinsheng was fined about 3.24 million yuan, with its chairman also personally penalized.
- 2025：
- 12 payment licenses were canceled, marking the fastest annual decline on record.
- 2025：
- More than 50 firms were fined and major companies like Alipay and Tenpay came under direct AML supervision by the PBOC’s headquarters.
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