huawei is currently seeking approval from the Communist Party of China (CPC) government to acquire Xunlian Pay, a Chinese licensed digital payment provider. After obtaining the payment license, Huawei will become the second cell phone maker to have a payment license, following Xiaomi.
According to GizChina on Feb. 11, Chinese tech giant Huawei is looking to acquire digital payment-based companies in preparation for its entry into the payments market, a timing that coincides with a new anti-monopoly law proposed by Communist regulators in an attempt to break the monopoly of Ant Group and Tencent in the digital payments market.
The newspaper quoted sources as saying that Huawei is currently hiring for a large number of positions related to the payments business, including positions responsible for reserve management, routing and payment clearing work, as well as network operation and maintenance posts and bank cooperation posts. Related companies include Runhe Software and Keilan Software.
GizChina is a website dedicated to introducing Chinese smartphone products to the world, and the website is registered in the United States.
Xunlian Pay was founded by Chinese tech giant ZTE in 2013. The company launched its online payment license in 2014. Back in 2016, ZTE sold its 90% stake in the digital payment company to a Shanghai-based holding company.
Huawei is currently operating Huawei Pay, a payment service that uses NFC and has been built into its smartphones since 2016.
In August 2016, Huawei Pay went live in the Huawei Mate and Honor series of smartphones, marking Huawei’s official entry into mobile payments.
In recent years, Huawei has no plans to apply for a payment license, although it has been promoting Huawei Pay. In the absence of a payment license, Huawei Pay uses the application of partner banks’ Type II and III accounts to realize Huawei Wallet balance payments, and through cooperation with UnionPay to realize cell phone side cloud flash payment, Huawei cell phones only need to be close to POS terminals that support UnionPay cloud flash payment to complete the payment.
Apple’s Apple Pay once occupied a 90% share of China’s overall NFC payment market, and Ren once said, “I think Apple has given us an example, Apple’s business model is a vertically integrated model, and in many places, Huawei is inferior to Apple.”
In July 2020, Huawei Wallet launched a function called “Merchant Receipt”, an innovative multi-functional mobile payment product; in September 2020, Huawei and CITIC Bank launched the CITIC Bank Huawei Card credit card, which enables comprehensive online management of credit card bills through the Huawei Wallet App .
According to Payment Encyclopedia, Huawei has a natural traffic entrance and sits on 300 million domestic users. After obtaining the payment license, Huawei will focus on building wallet financial business with payment services as the fulcrum, and consumer finance and cash loans may become the future direction of Huawei’s strength.
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