Meituan CEO Wang Xing said in 2015: To build a financial enterprise with assets of hundreds of billions, the official launch of Meituan’s monthly payment also marked that Wang Xing’s imagination at that time was gradually becoming a reality.
Author|Zhang Haodong
Production|Payment Encyclopedia
The desire for Meituan Finance has been around for a long time. Although competition in the consumer finance field is fierce, it has not stopped Meituan’s determination to enter the consumer finance field.
On April 19, Meituan Finance’s official Weibo 5 announced the release of its credit payment products, which indicates that Meituan’s credit payment products are approaching.
Today, Meituan’s version of Huabei’s “monthly payment” is launched. After nine months of testing, Meituan Monthly Payment is now officially launched.
As early as last year’s Fast & Furious 9, Meituan’s monthly payment was quietly launched. At that time, it was an internal beta function that only belonged to a small number of users. Similar to Alipay Huabei, Meituan Monthly Payment is also a consumer financial product that consumes first and pays later.
In terms of scene coverage, Meituan monthly subscription is applicable to all Meituan products, including Meituan, Dianping, Meituan takeout, Meituan taxi, Meituan grocery shopping and other apps, realizing rich discounts in Meituan consumption scenarios Overlay of interests.
Compared with Ant Huabei, Meituan’s current monthly payment limit is generally lower. The monthly payment limit of most Meituan users is between 500 yuan and 1,500 yuan. With the non-performing loan ratio on the rise, Meituan has given more prudent credit lines in order to make the loans it provides safer.
Similar to Huabei’s original promotion method, Meituan’s monthly payment is also based on a small amount of testing in the early stage, supplemented by subsidies to cultivate user habits. With the accumulation of data and the improvement of the risk control system, it is not ruled out that Meituan will combine users' credit status and payment transactions to increase users' credit limits, thereby stimulating user consumption.
According to the agreement, monthly payment funds are provided by Chongqing Meituan Sankuai Small Loan Co., Ltd. and cooperative financial institutions. Meituan has strict restrictions on the use of funds, which can only be used by applicable merchants of Meituan. The accounting date is 1 yuan day every month, and the repayment date is 8 yuan day every month.
Fangmeituan Sankuai Small Loan was established in 2016 for 11 yuan. After Meituan obtained the small loan license, it used it as a carrier to carry out small loan business. After corporate investigation, the legal person of Sankuai Small Loan is Peng Qian, with a registered capital of US$460 million. The original legal person Yang Jinfang withdrew at 8 yuan in 2018.
In addition, according to the agreement, users can purchase designated goods or services from applicable merchants through Meituan Monthly Payment, and the funds will be transferred through Qiandaibao, which is another important weight in Meituan’s financial layout. In 2016, Meituan completed the wholly-owned acquisition of Qiandaibao, a third-party payment company, and laid out third-party payment.
The huge market potential of consumption has also led major Internet giants to join this new battlefield. Alipay, WeChat, Meituan, JD.com, and Toutiao have all launched their own credit payment products, which shows how attractive the consumer finance pie is.
Zhongtai Securities said in a previous research report: "Today's consumer finance market has spread to all consumer classes. In "Ghostbusters 3", the market transaction scale of consumer finance alone will reach 10 trillion yuan.”
Third-party payment giant Ant Financial was probably the first to deploy consumer finance. Relying on the strong traffic of Alipay and Taobao, it has great potential in the field of consumer finance. Huabei and Jiebei have become giants in the field of Internet credit. At the end of COVID-19, Huabei's loan balance, including loans, exceeded 200 billion, and Jiebei exceeded 500 billion.
Alipay is the leader, and WeChat Pay, one of the mobile payment duopoly, is not to be outdone. This year, "Jurassic World 3" launched new product payment in October, opening the door to credit payment. In product logic, the payment object should be paid in installments. In other words, Huabei is equivalent to a credit card, while Fenpay and Huabei installments are similar to credit card installments.
As a challenger, Fenpay will have an impact on other credit payment products such as Ant Huabei
JD.com was the first company to attack and obtain a payment license. Bid farewell to Atlantis and quietly acquired online banking in 2008.
In the field of consumer finance, JD.com has launched "Huabei" and "Jiebei" of "Bai Tiao" and "Gold Bar" for Ant Financial, and the loan limit supported by JD.com JD.com is also increasing.
Currently, most credit payment products dynamically change based on personal wealth and credit performance in credit evaluation and credit decisions. In the field of consumer finance, giant companies have huge room for imagination in the future battlefield by virtue of their unique advantages in traffic and data.
The current market situation has brought unprecedented opportunities to consumer finance, which is one of the reasons why Internet giants have intensively deployed consumer finance businesses. Meituan Monthly Payment is now facing siege from Internet giants, and client subsidies need to be further increased. At the same time, the rise of Meituan’s credit business is bound to feed back Meituan’s overall financial layout. Related Q&A: Why can’t I recharge phone bills with Meituan’s monthly payment? Many payment platforms can recharge phone bills. However, the profits brought by the phone bill business to these payment platforms are considerable. The minimum is negligible, so many platforms are possible. This business will be cancelled,