Huawei has been in talks to acquire Xunlian Zhipay, a licensed clearing house, although, the deal has not yet been officially announced and requires regulatory approval.
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.
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. Since the announcement of Huawei Pay, the company has embodied the features of Huawei Wallet.
China’s ecommerce Big Tech, JD.com, is currently reorganizing its financial sector, JD Digits, into a new group, JD Technology. 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.
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