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BEIJING, Aug. 7 -- Online payment was most complained about in the Internet finance sector, according to the central bank on Friday.

More than 95 percent of customer complaints regarding Internet finance services were about online payment, according to the People's Bank of China (PBOC).

Third-party online payment platforms offer convenient channels for illegal activities, such as money laundering, as accounts are not based on real names.

Meanwhile, poor information protection for some online payment institutions threatened customer privacy.

A new security regulation on third-party payments has stirred big controversy in China, with critics saying it compromises convenience for the interest of state-backed banks.

In a draft regulation released in late July, the central bank proposed limiting the amount shoppers could pay through third-party online payment accounts to between 1,000 yuan (163.5 U.S. dollars) and 5,000 yuan per day, depending on the system's security checks.

Authorities with PBOC pointed out that it is necessary to enhance privacy protection and regulate online payment services to ensure safe consumption.