Huawei gains mobile payment license after its latest acquisition

Monday 29 March 2021 14:13 CET | News

Huawei has gained a mobile payment license in China after acquiring Shenzhen Xunlian Zhifu Network.

According to KrAsia, Xunlian was founded by telco giant ZTE. In 2014, it was issued a nationwide license to provide payment services via its website or mobile phone. The license is valid until July 2024. 

Huawei has been in the mobile payment sector for years, leveraging on UnionPay’s mobile payment service. The Huawei Pay app, which launched in 2016, allows Huawei phone owners to pay for goods online, as well as in bricks-and-mortar stores and for bus rides even with the connection turned off. The services are based on near field communication (NFC), a technology that hasn’t found many users in China. Consequently, it is necessary for Huawei to hold a payment license since the company wants to provide more payment and other financial services, the company's officials stated.

Furthermore, Huawei will continue to promote its mobile payment services primarily within its own ecosystem, therefore it will not impact Alipay or WeChat much in the short term. Before Huawei, tech companies including, Didi Chuxing, Meituan, Pinduoduo, ByteDance, and Kuaishou all acquired their own mobile payment licenses.

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Keywords: Huawei, acquisition, mobile payments
Categories: Payments & Commerce
Countries: China
This article is part of category

Payments & Commerce