Chinese telecom company Huawei Technologies has secured a payment licence with the acquisition of digital payment firm Shenzhen Sharelink Network.
According to database query platform Tianyancha, Shanghai VRTime Technology has divested its holding in the payment firm in which Huawei has taken a 100% stake.
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Established in 2013 by ZTE, Shenzhen secured a licence to operate online and mobile payment-based businesses since 2014.
Shanghai VRTime Technology bought a 90% stake in Shenzhen from ZTE in 2016.
Huawei is said to be the latest in a line of Chinese tech firms to step into the payment space.
About 94% of the Chinese mobile payment market is dominated by Tencent’s Tenpay, which includes WeChat Pay, and Alibaba-backed Alipay, says consumer data provider Statista. With its latest move, Huawei is anticipated to challenge their hegemony.
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By GlobalDataIn 2016, Huawei rolled out Huawei Pay, a payment service which utilises near field communication (NFC) technology.
In 2014, China granted the first e-payment licence to international firm Beijing Chanjet.
Other developments in China’s payment space
Last month, SWIFT, the global system for financial messaging and cross-border payments, set up a financial gateway joint venture with subsidiaries of the People’s Bank of China (PBoC).
The subsidiaries include the China National Clearing Center (CNCC), and the Digital Currency Research Institute.
The same month, reports emerged about Ant Group forming a restructuring agreement with the Chinese regulator to turn the fintech firm into a financial holding company.
In January this year, China’s ByteDance, an internet firm and the owner of the short video app TikTok, launched its own third-party mobile payment service called Douyin Pay.
Earlier that month, Australian marketing and payment service provider (PSP) AirPay Financial Technologies (AirPay FinTech) expanded its e-commerce partnership with China’s UnionPay.
