Huawei's payment business has made new progress. This time, it has transformed from "Xunlianzhipay" to "Petal Payment". Looking back, in March 2021, Huawei obtained a payment license through the acquisition of Xunlianzhipay. In September 2021, Huawei Pay online payment function will be launched. In June 2022, the Petal Payment trademark applied by Huawei was approved for registration.

access:

Huawei Mall

Central Bank Approval: Huawei’s Petal Payment is coming!

On October 13, the People's Bank of China updated the license information for major changes in non-bank payment institutions.agreeShenzhen Xunlian Zhipay Network Co., Ltd. (hereinafter referred to as "Xunlian Zhipay") changed its company name to "Petal Payment (Shenzhen) Co., Ltd." (hereinafter referred to as "Petal Payment").

Xunlian Zhipay is a payment institution under Huawei. In March 2021, Xunlian Zhipay underwent industrial and commercial changes, and Huawei became the sole shareholder and successfully completed the acquisition of Xunlian Zhipay. Xunlian Smart Pay was first funded by ZTE Software Co., Ltd. (hereinafter referred to as "ZTE Software") and was established in June 2013. In 2014, it obtained the "Payment Business License" from the People's Bank of China and was allowed to carry out Internet payment, mobile phone payment, digital TV payment and other businesses. However, when it was renewed, it took the initiative to terminate the "digital TV payment" business.

In January 2018, there was another shareholder change in Xunlian Zhifu. ZTE Software completely withdrew and became a wholly-owned subsidiary of Shanghai Woruiou and a payment institution under Zhengtong Co., Ltd. Until 2021, Xunlian Zhipay changed owners again and became a payment institution under Huawei.

After winning Xunlianzhipay, Huawei launched Huawei Pay in September 2021, and in October 2021, Huawei Pay will be applied to Huawei Developer Conference 2021 ticket sales.

According to the official website of the State Intellectual Property Office, Huawei applied for the Petal Payment trademark in October 2020. In June 2022, Petal Payment was approved for registration.


Does it compete with WeChat and Alipay?

According to previous reports by Daily Economic News reporters, since 2014, driven by large technology companies such as Alibaba and Tencent, China’s mobile payment market has developed rapidly. Today, the merchant systems of WeChat Pay and Alipay have almost covered various large and small fragmented payment scenarios in China, such as supermarkets, roadside stalls, and vegetable markets. The two have occupied more than 90% of the domestic payment market.

What makes the outside world curious is that in a market environment where WeChat Pay and Alipay have developed so maturely, what is the purpose of Huawei's entry into the payment market?

In response, Ma Chuanyong responded: "From a functional point of view, payment is one of the core functional components of the closed-loop transaction within the underlying ecosystem. Payment products born in the mobile era will play a more important role in the ecological commercial closed-loop of the Internet of Things era."

He said that the new mobile payment form does not require "scanning" by opening the relevant mobile phone APP, but can be completed through any terminal such as mobile phones, watches, cars, etc. For example, in travel scenarios, when Huawei mobile phone users drive near a gas station, they will receive a message service from a nearby gas station. Users can freely select the fuel number, amount, etc., and can complete refueling without getting out of the car after paying with Huawei.

In addition, Ma Chuanyong also said,"Huawei Pay is not in a competitive relationship with WeChat Pay and Alipay. They are all partners of Huawei. In fact, Huawei Pay is currently focusing on user experience. In the future, when new markets grow and users like to pay with Huawei, our share will increase."As for specific new scenarios, he believes that the payment scenario on the car machine is one of them.

When talking about whether Huawei Pay will provide large subsidies in the early stages of development to attract users, Ma Chuanyong said: "Expanding market share is not the purpose of Huawei Pay. We are not essentially competing with other payments. The payment engine is one of the 'five root services' provided by Huawei for global developers. Huawei Pay is one of the core components of the Hongmeng system's ecological capabilities and commercial closed loop. This path must be taken."

In 2019, Huawei released the full-scenario distributed operating system Harmony OS, and began upgrading it on Huawei mobile phones in 2020. As of the end of April 2022, more than 240 million Huawei devices are equipped with HarmonyOS.

In terms of specific markets, Ma Chuanyong said that Huawei Pay will first focus on China. "After obtaining the license, we must first improve the product experience in the country."

Daily Economic News integrates the People's Bank of China website, Qichacha app, and Daily Economic News (Reporter: Wang Jing)