Didi Chuxing rumored to get payment license via acquisition of 19Pay
Chinese car-hailing firm Didi Chuxing will fully acquire 19Pay for RMB 4.3 billion (USD 62.2 million), reported news outlet Paynews.net, citing people familiar with the matter.
The source added that the deal is still under discussion and Didi is expected to fully take over the company in July or August this year. Didi, for their part, has neither confirmed nor denied the discussions of the deal.
“Mobility covers a rich diversity of payment scenarios. Didi has kept extensive dialogue with partners in this industry,” said a spokesperson. “We continue to focus on our core transportation business and do not have plans to enter the payment business.”
In addition that, the source revealed that LeEco was also in talks with 19Pay, but the deal went sour because the companies couldn’t agree on the price, reported Technode.
Founded in 2010, 19Pay is a payment company that provides domestic telecom integration and e-commerce payment services. After gaining third-party payment license in June 2012, Gaoyang Jiexun, the company behind 19Pay, was acquired by GoHigh Data Networks, the listed arm of Datang Telecom in 2013.
Like many other companies that have invested heavily in payment companies, Didi’s motive behind his deal is loud and clear: to have its own payment license.
The license is a further indicator for the company’s plans in expanding into the financial sector, which has become a must-have business of nearly every major Chinese internet company thanks to the proven model and promises of higher margin.
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