Payment Licenses Drive Internet Platforms Toward Super App Status

November 21 — Acquiring payment licenses or expanding payment services are two major strategies among Chinese internet platforms aiming to develop into comprehensive super apps.

“Payment capabilities are essential for super apps, serving as a key component in their integrated business models,” stated an associate professor at Shanghai Jiao Tong University’s business school. “They facilitate seamless transactions across various scenarios like e-commerce, live streaming, revenue sharing, international commerce, and digital marketing.”

These situations frequently involve money flow and settlement processes. Relying on third-party payment providers can hinder operational efficiency and increase compliance risks for internet companies.

Securing their own payment licenses enables these platforms to establish independent systems for account management, fund distribution, risk mitigation, and data analytics—laying a solid groundwork for future financial services expansion, the expert added.

Recent regulatory changes have made it clear that long-term reliance on third-party payment data processing is risky, both commercially and legally. This shift has turned the ownership of payment licenses from a competitive advantage into an essential requirement, according to Wang Pengbo, a chief analyst at Botong Consulting. These regulatory developments have transformed payment licensing into a necessity rather than a bonus, he explained.

As foundational infrastructure, payment systems significantly influence a platform’s revenue generation, risk management, and ability to branch into new markets, Wang emphasized.

Examples from this year include online travel platform Tongcheng Travel acquiring Xinsheng Payment, lifestyle content platform Xiaohongshu taking control of Oriental Electronic Payment, and life services provider 58.Com purchasing a 70 percent stake in Shengya Yunding Payment. Additionally, video streaming giants Douyin and Kuaishou Technology completed acquisitions of licensed payment companies last year.

For Tongcheng Travel, the associate professor explained that the travel industry involves frequent transactions for flights, hotels, and attractions, which demand efficient fund management and settlements. Xinsheng Payment now serves as a centralized platform for managing these transactions, boosting operational efficiency and enabling the company to offer integrated financial services to third parties.

Meanwhile, leading internet firms have been actively injecting capital into their payment subsidiaries this year. Tencent’s TenPay increased its registered capital to 22.3 billion yuan (approximately USD 3.1 billion) in June from 15.3 billion yuan, and JD.com’s Wangyin Online Beijing Business Service was approved to raise its capital to 1.5 billion yuan (about USD 210 million) in October from 1 billion yuan.