Core Viewpoint - The recent update from the China Payment and Clearing Association reveals that 428 new payment outsourcing service providers have been registered, while Baofu Network Technology (Shanghai) Co., Ltd. has voluntarily terminated its registration, indicating a tightening of management in the payment outsourcing sector [1][3][6]. Group 1: Registration and Compliance - A total of 428 service providers have been newly registered, with the majority (402) holding qualifications for special merchant recommendations [3]. - The current total of registered payment outsourcing service providers stands at 33,130, with 728 institutions registered for aggregated payment technology services [4]. - The registration process has been continuously upgraded since 2016, with a requirement for all operating outsourcing institutions to be 100% registered by 2025 [4]. Group 2: Industry Dynamics - Payment outsourcing institutions serve as intermediaries between licensed payment institutions and offline merchants, playing a crucial role in expanding market reach [4]. - The increase in registered service providers reflects a rapid expansion in the market, driven by commission earnings linked to transaction volumes [4][5]. - The regulatory framework aims to enhance transparency and reduce risks associated with illegal payment activities, thereby improving overall service quality in the industry [5]. Group 3: Baofu Payment's Status - Baofu Payment's registration has been marked as "invalid," but the company clarified that this was a voluntary decision to comply with regulatory guidelines, not due to any violations [6][7]. - The company maintains that its ability to conduct business remains unaffected, as licensed payment institutions are inherently permitted to engage in merchant cooperation and aggregated payment services [7]. - The ongoing updates to the registration list are intended to maintain competitive order in the payment outsourcing industry and promote high-quality partnerships [7].