ByteDance buys UIPay to leverage e-payment capabilities at home

ByteDance

ByteDance, the proprietor of popular short-video app TikTok, said it has obtained a Chinese third-party payment service UIPay in an attempt to leverage its national payment capability.

ByteDance purchased UIPay’s operator, Wuhan Hezhong Yibao Technology, via an entity named Tianjin Tongrong E-commerce, data in the national business registration portal showed. The ownership change was created on the 28th of August.

Tianjin Tongrong is owned by Zhang Yiming, the founder and Chief Executive Officer of ByteDance.

“The acquisition is to supplement the existing major payment options, and to ultimately enhance user experience on our multiple platforms in China,” ByteDance stated in a statement sent to Reuters on Friday, without elaborating.

There were reports of ByteDance acquiring UIPay in 2018, but ByteDance had downplayed the news and said both were just business partners.

ByteDance has been hiring globally, and especially in Singapore, for a team which would be in charge of constructing a community and a platform supplying cross-border payments options to the buisness, according to LinkedIn advertising.

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Two sources said ByteDance had applied for a digital banking license in Singapore, which the company has declined to comment on.

In the home, ByteDance has also been using its own online finance business.

It obtained a licence for micro-lending in July, also is taking steps to move to the online stock broker and wealth management firm in Hong Kong.

ByteDance has been ordered by US President Trump to divest of its TikTok operations in America or face a ban amid growing international security concerns with the private data it handles.

The team at Platform Executive hope you have enjoyed this news article. Initial reporting via our official content partners at Thomson Reuters. Reporting by Cheng Leng in Beijing and Brenda Goh in Shanghai. Additional reporting by Yingzhi Yang, Fanny Potkin and Anshuman Dag. Editing by Himani Sarkar.

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