Huawei Acquires Xunlian Zhipay for Payment License

Huawei is in talks to acquire Xunlian Zhipay, a licensed clearing house. Payment encyclopedia Report. The deal has not yet been officially announced and requires regulatory approval.

Chinese phone makers, who have repeatedly said that cloud service president Su Jie will not apply for payment licenses, have now decided to buy the company that owns the payment licenses.

Founded in 2013, Xunlian Zhipay owns a license issued in 2014 and is able to operate online and mobile payment-based businesses. However, the acquisition of a bank card is excluded.

Entering the financial markets is not an easy time unless you are a pure financial player in China

In China, in addition to approved business licenses, companies are also operated by General Payment Services (PSO) licenses issued by the People’s Bank of China (PBOC). Huawei will secure both of these through this transaction.

In 2016, Huawei Pay launched some of its smartphones, demonstrating that tech giants have entered mobile payments. China UnionPay, a bank card provider, is responsible for handling Huawei transactions.

Jie said Huawei wouldn’t go any further. This was mainly because the company had a “boundary consciousness” and thought it was meaningless to expand into sectors that it was not essentially good at.

However, the success of players such as Apple seems to have caught the eye of Huawei. In 2017, Apple Pay accounted for 90% of the total NFC payment market in China in 2017. This is different from the QR code market on Alipay and WeChat. It was by Jennifer Bailey, then president of Apple.

Hiring spree

Payment encyclopediaThe report shows that recruitment is increasing in positions related to Huawei’s emerging payments business.

It cites titles that cover reserve management, routing, payments, payments, network operations, maintenance, and banking cooperation.

Huawei has about 300 million domestic users. Since the announcement of Huawei Pay, the company has embodied the features of Huawei Wallet.

In July 2020, we turned Huawei phones into merchant collection devices. The phone could then act as a mobile acquisition device for cash collection, real-time collation, and cash settlement.

Two months later, Huawei and China CITIC Bank launched a co-branded credit card through their wallet. Initially reluctant, Huawei finally seems to be accepting finance as its own sector.

OnePlus, a Chinese smartphone maker, launched the OnePlus Pay feature last year.Established in South Korea, Samsung has launched a payment service using Curve Last august.. In the United States, Apple launched a card with Goldman Sachs in the same month.

Regulatory crackdown

If you are not a pure financial player in China, entering the financial markets is not an easy time.

In the days leading up to Ant Group’s record $ 37 billion initial public offering (IPO) last year, Chinese officials unplugged the list.

Since then, they have demanded that the company embody its balance sheet and fund more loans, spin off Split some financial operations into separate entities.

China’s e-commerce Big Tech, JD.com, is currently reorganizing its financial sector, JD Digits, into a new group, JD Technology. We operate only FinTech, artificial intelligence, and cloud businesses.

Like JD.com, Ant is required to register new financial holdings by November 2021 as announced by the State Council of China. Regulators want non-financial companies entering the field to comply with the same rules as traditional financial institutions.

Huawei, which has 300 million domestic users, could be under similar scrutiny. Especially when the finance department has grown to a considerable weight.

Many Internet companies, including Pinduoduo, Bytedance and Trip.com, acquired licensed digital payment providers last year.

In January, Bytedance also released an in-app payment tool At Douyin, Chinese version of the popular short format video app TikTok. A Bytedance spokesman said, “It complements existing key payment options.” The launch followed the announcement of the financing app by Bytedance a year ago.

Read next: Ant plans an IPO once it reaches a restructuring deal with regulators

(function(d, s, id){ var js, fjs = d.getElementsByTagName(s)[0]; if (d.getElementById(id)) {return;} js = d.createElement(s); js.id = id; js.src = "https://connect.facebook.net/en_US/sdk.js"; fjs.parentNode.insertBefore(js, fjs); }(document, 'script', 'facebook-jssdk'));

Huawei Acquires Xunlian Zhipay for Payment License

Source link Huawei Acquires Xunlian Zhipay for Payment License