The People's Bank of China has opened the country's mobile payment market to foreign companies in a move intended to encourage innovation and competition, according to a report in Securities Daily.

The move by the central bank means that foreign companies can apply for a license to offer payment services in China. Foreign players in China's mobile payment market will be required to keep personal information and payment details within China's borders.

A number of foreign payment companies, such as Paypal, have previously established ties with partners in China, but they have been limited to providing cross-border payment services to citizens of China.

The move is an expansion of a market dominated by domestic payment giants Alibaba and Tencent, which make up 93% of the market. There are currently 243 mobile payment companies operating in China.