Screenshots of Meituan’s credit payment feature. (Image credit: TechNode)

Chinese services platform Meituan Dianping has unveiled a credit payment feature named Maidan, following its technology peers which have launched similar services.

Why it matters: Meituan is deepening its fintech offerings, an important component for platform’s core service businesses which require payment transactions.

  • With this push, the Chinese food delivery giant is competing head-on with Alipay, JD.com, and Tencent, which also have their own virtual credit payment tools.
  • The new feature will bring additional revenue through fees charged for installment payment services and late payments.

Meituan shares hit historical high after Golden Week surge

Details: The new financial service offers users credit to delay payments by a month, and interest-free loans for up to 38 days.

  • The credit payment option now supports all the major apps within the company’s ecosystem including Dianping, ride hailing service Meituan Dache, and grocery delivery service Meituan Maicai.
  • Meituan users qualify for credit lines from RMB 300 (around $43) to RMB 1,500 according to credit and spending histories on the app.
  • A select group of merchants and users have been testing the credit payment feature since September.

Context: The Hong Kong-listed firm reported RMB 1.33 billion ($191 million) in profits in the third quarter of 2019, a second consecutive quarterly profit since its September 2018 listing.

  • Companies that run online payment services in China must obtain a license, which the firm nabbed through its acquisition of a third-party payment startup Qiandai in 2016.
  • In addition to the company’s homegrown payment channel Meituan Pay, the app also supports popular payment tools Alipay, WeChat Pay, and Apple Pay.
  • The app works with local banks such as Bank of Shanghai, Bank of Guangzhou and Bank of Qingdao to issue joint co-branded credit cards. It also offers loan services through its micro-credit subsidiary Meituan Sankuai Micro-loan.
  • Which Tencent only launched its Fenfu credit payment service in late 2019, JD.com launched Baitiao in 2014 and Alipay debuted Huabei in 2015.

Emma Lee

Emma Lee (Li Xin) was TechNode's e-commerce and new retail reporter until June 2022, when she moved to Sixth Tone to cover technology and consumption. Get in touch with her via lixin@sixthtone.com or Twitter.

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