Didi Chuxing acquires 19Pay for $45 million, picking up payment license
Didi Chuxing, China’s largest ride-hailing company, is speeding into the payments business, acquiring a much-coveted license to join the red-hot internet financial-services arena.
Didi has agreed to fully acquire third-party payment-services provider 19Pay for 300 million yuan (USD 45.4 million), according to a Tuesday statement by Shanghai-listed GoHigh Data Networks Technology Co.
GoHigh Data said its board approved its subsidiary Gaoyang Jiexun Information Technology, which wholly owns 19Pay, to sell the stakes in the payment firm to Didi.
The deal will mean Didi — which won its battle against Uber for dominance in China — will have a license for online-payment business. Didi made the investment through its wholly owned subsidiary Shanghai Shiyuan Technology.
Shanghai Shiyuan has paid a deposit of 90 million yuan for the transaction, according to the statement. The People’s Bank of China (PBOC) has approved the transaction, the company said.
By acquiring 19Pay, Didi will be able to develop its own payment service. Didi currently handles payment transactions for some 20 million ride orders every day mainly through WeChat Pay, the mobile-payment tool offered by Tencent Holdings’ popular messaging app WeChat, and Alipay, China’s largest online payment provider affiliated with Alibaba Group.
Founded in 2010, 19Pay obtained an internet-payment business license in 2012. In addition to transacting payments for such things as online shopping or transportation, the company offers mobile phone top-up services through its partnerships with the country’s top three mobile careers – China Mobile, China Unicom and China Telecom. During the first nine months of 2017, 19Pay reported 3.8 million yuan in revenue, with a net loss of 4.8 million yuan. The company has net assets of 73.8 million yuan, according to the statement.
Didi has paved the way for its expansion into the online financial sector. Last month, Didi and Ant Financial, the operator of Alipay, became strategic investors in Gaoyang Jiexun. A subsidiary of Didi invested 35 million yuan for a 3.14% stake in the owner of 19Pay.
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