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Chinese tech companies launch virtual credit cards to develop online shopping

Wednesday 12 March 2014 13:14 CET | News

Alipay, the online payments branch of Alibaba, a China-based ecommerce company, has joined forces with Chinese financial institution CITIC Bank, to start issuing one million virtual credit cards, approving the creditworthiness of applicants based on their online shopping histories.

In other words, CITIC Bank will impose credit limits based on information from Alipay on the applicant’s online shopping behaviour. The minimum credit limit is USD 33 (CNY 200).

Alipay informs that consumers may use the virtual credit card only on ecommerce platforms that accept CITIC credit cards, and at offline retail outlets that accept Alipay’s Wallet app as a payment method.

Likewise, the internet services provider and the owner of WeChat, Tencent, is teaming up with CITIC Bank and Zhong, an online property insurance company, to issue one million virtual credit cards. In a statement delivered to online media outlet TNW, Tencent says that users of WeChat (Weixin in China) can apply for the card with a minimum credit limit of USD 8 (CNY 50) and a maximum of USD 814 (CNY 5,000). Consumers can use the card when paying via Weixin, or at offline retail outlets that support the scanning of Weixin QR codes.

Alibaba and Tencent’s foray into providing credit for customers comes as both internet companies have been selected to take part in the preparation work for setting up five new private banks in China.
 


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Keywords: China, Alipay, Alibaba, CITIC Bank, ecommerce, virtual credit card, online payment
Categories: Payments & Commerce
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Countries: World
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