WeChat Pay parent Tencent was rumoured to be preparing to launch a credit service compatible with its popular mobile payment platform, South China Morning Post reported.
The service, tentatively called Fenfu, is apparently going to offer basic credit services and small loans to WeChat Pay’s huge user base in its home market of China. It will target those unable to access traditional credit card facilities from mainstream banks.
Domestic rival Ant Financial, which runs mobile payment system Alipay, already offers virtual credit cards under its Huabei brand.
Expanding into credit and loans has become a popular way for mobile payment providers to offer additional financial services, both in developed and developing markets.
Major mobile payment players introducing formal loans or credit services include Safaricom in Kenya, Paytm in India and Line in Japan.
Depending on regulation in the specific countries, they have either done these in partnerships with traditional financial services companies, or directly.Subscribe to our daily newsletter Back