China's central bank has suspended virtual credit card services and barcode-based mobile 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 that have launched such services.

The announcement was made a day after CITIC Bank announced that it planned to partner with Alibaba and Tencent to issue virtual credit card-based QR code payments. The directive also bans financial institutions from setting up accounts on third-party payment platforms, including Tenpay and Alipay.