China's central bank has halted virtual credit card products and "face-to-face" online payment services such as QR code payments.
The move comes amidst concerns over the security of verification procedures, and deals a heavy blow to Internet companies including Tencent and Alibaba group, that have launched such services.
The announcement came one day after CITIC Bank announced that it planned to partner with Alibaba and Tencent to issue virtual credit card-based QR code payments.
Shares of Tencent, and China CITIC Bank plunged in Hong Kong and Shanghai on the news.