Editor’s Note
The race for payment licenses among China’s major internet platforms is intensifying, as companies like Xiaohongshu, 58.com, Douyin, and Kuaishou move to secure their own payment infrastructure. This trend highlights the strategic importance of in-house payment systems for enhancing user experience, data control, and monetization in the competitive digital ecosystem.
Recently, the acquisition of payment licenses by internet platforms has continued to heat up. Following Tongcheng’s acquisition of Xinsheng Payment via its subsidiary eLong, Xiaohongshu has completed its controlling stake in Oriental Electronic Payment Co., Ltd. (hereinafter referred to as “Oriental Payment”); 58.com acquired the remaining 70% equity of Shengyayunding Payment in October this year; Douyin and Kuaishou also completed their respective payment license acquisitions last year and are accelerating integration. Meanwhile, payment institutions under several leading platforms have simultaneously initiated capital increases and business expansion, reflecting that internet giants’ strategic investment in payment services is entering a new climax.
Why are internet platforms intensively acquiring payment licenses? Based on insights from industry insiders, the reasons are twofold: on one hand, regulatory encouragement for clear rights and responsibilities; on the other, the accelerated pace of platform commercialization driving demand.
Wang Pengbo, Chief Analyst at Bocon Consulting, pointed out that as platform business scenarios become increasingly diverse, the need for closed loops in transactions, data, and funds grows stronger. Payment, as underlying infrastructure, directly impacts a platform’s monetization capability, risk control, and cross-scenario expansion ability. The new “one control, one participation” rule clarified in the “Regulations on the Supervision and Administration of Non-bank Payment Institutions” (hereinafter referred to as the “New Regulations”) implemented in 2024 also prevents platforms from circumventing licensing requirements through methods like nominee holdings. Simultaneously, under regulations like the Data Security Law and the Personal Information Protection Law, long-term reliance on third parties to handle payment data brings commercial and compliance risks, making self-held licenses shift from a ‘bonus’ to a ‘necessity.’
Simultaneously, tail-end payment institutions generally face issues like lack of scenarios, insufficient business scale, and high compliance costs, forming a complementary relationship with platforms. The aforementioned insider stated that, taking the travel scenario as an example, Tongcheng’s various business modules such as flights, hotels, and scenic spots require frequent fund allocation, reconciliation, and settlement services. Xinsheng Payment can become a unified settlement node connecting users and service providers, improving overall operational efficiency and helping the platform export comprehensive financial solutions.
However, parallel to the acquisition boom is the overall tightening of payment license renewal reviews. Wang Pengbo pointed out that the central bank has continuously increased requirements for anti-money laundering, reserve fund management, and information system security in recent years, while many acquired payment institutions have issues like weak historical foundations and limited technology investment. If they cannot meet the New Regulations’ requirements within the rectification period, the renewal of a batch of licenses expiring in 2026 faces uncertainty.
This also means that even though some institutions have obtained “long-term effective” licenses, it does not signify regulatory relaxation. Industry insiders emphasize that the registered capital, reserve fund ratio, and business continuity capabilities required by the New Regulations are only the first step towards compliance. Subsequent monitoring intensity in areas like identity verification, transaction monitoring, interface management, and merchant review will continue to strengthen.
