Meituan’s Consumer Finance Company Rumored to Be Established in Shenzhen

Meituan‘s shopper finance firm was just lately reported to be established in Shenzhen this yr. The Luohu District of Shenzhen processes purposes for finance-related enterprise licenses. A Meituan consultant acknowledged, “We have no clear short-term plan or goal for the specific license application. We will operate the finance business in strict accordance with regulatory requirements.”

Meituan has stored a low profile in the finance and banking enterprise since early 2015. In 2016, Meituan was reported to be engaged in third-party fee and settlement actions with no license. At the time, the People’s Bank of China ordered rectification inside three months. Subsequently, Meituan started to accumulate monetary licenses for industrial factoring (performing as an middleman between the client and the vendor to be answerable for funds, credit standing, and account administration), third-party fee processing, small on-line loans, personal banking, and insurance coverage brokering.

In September 2016, Meituan spent 1.3 billion yuan ($190 million) to purchase Qiandai.com and acquire its fee processing license. In November of the identical yr, Meituan established Chongqing Sankuai Microfinance Co., Ltd. and obtained its microfinance license. In December of the identical yr, Yilian Bank was authorized for a non-public banking license, and an organization managed by Meituan founder Wang Xing holds a 28.5% stake. In February 2018, an insurance coverage company below Meituan obtained an insurance coverage license.

The “wallet” interface on the Meituan platform reveals three present main merchandise: Money Lending, Monthly Payments, and Credit Cards.

In the second half of 2016, Meituan partnered with Merchants Union Consumer Finance Company Limited to launch its loans enterprise. In 2017, Meituan launched a micro-cash mortgage product, and in May 2020, it launched a credit score fee product comparable to Alipay’s Huabei and JD.com‘s Baitiao.

However, it can’t be ignored that Meituan is a latecomer to the finance enterprise and face sturdy rivals together with Tencent and Alibaba. Nevertheless, Meituan co-branded bank cards turned a significant success. In September 2018, Meituan partnered with Qingdao Bank to problem the primary joint bank card. After two years, in October 2020, Meituan had issued over 10 million co-branded bank cards. Meituan has gained partnership curiosity from at the very least 14 banks.

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Micro-credit falls below Meituan‘s “new business” section. According to its semi-annual report of 2022, as of June final yr, the unaudited loans receivable in non-current property was about 1.556 billion yuan ($228.3 million), a rise of about 534 million yuan ($78.4 million) in contrast with the tip of 2021. Loans receivable in present property was about 7.379 billion yuan ($1.1 billion), a rise of about 2.56 billion yuan ($375.6 billion) in contrast with the tip of 2021. As of June 2022, Meituan‘s microfinance enterprise carried a complete mortgage steadiness of about 8.935 billion yuan ($1.3 billion).

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