The China New Economic Research Institute and Alipay jointly issued the first “Post-90s Savings Report” in July 2019. The report shows that 92% of the post-90s, people born between 1990 and 1999, have a surplus with their salary every month, and 80% of the people manage the surplus. By comparing their Yu’e Bao, Alipay’s monetary […]
Huabei: Alipay's Virtual Credit Card for Chinese
What is Huabei?
Alipay related Huabei is a consumer credit product launched by Ant Financial, another Alibaba affiliated company, allowing a consumption quota ranging from 500 yuan to 50,000 yuan. Huabei serves as a virtual credit card so that users and enjoy post-payment shopping experience.
Ant Huabei was launched in April 2015, mainly adopted by Tmall and Taobao users in online shopping. Its main customers are post-80s and post-90s, accounting for about 80% users. Ant Financial has broken the limit of shopping platforms and expands the product to more online and offline areas.
Launched in half a month, over 1.5 million merchants on Tmall and Taobao had enabled the support of Huabei in order to attract more customers. Some see a conversion increase of up to 40%. Huabei accounted for 8.5% of all Alipay transactions on Double 11 in 2015.
How Huabei Works
When the user shops, he can advance the quota of Huabei and repay the payment on the 9th of the next month after confirming the receipt. The interest-free period can be up to 41 days.
In addition to the "buy this month, pay next month, long interest-free period" consumer experience, Ant Huabei also introduced the function of Ant Installment, wich which consumers can repay in 3, 6, 9, 12 months' installments.
On the 9th of each month, the user needs to pay off the already generated Huabei bill when the system automatically deducts the balance of Alipay balance, Yu'E Bao, or debit card quick payment. If it is overdue, it will charge a daily interest fee of 0.05%.
Over 45 million post-90s users in China signed up Alipay’s Huabei or Just Spend for online shopping payment according to a recent report by Alipay. This payment option serves as a virtual credit card for Chinese online shoppers on Alibaba’s Tmall and Taobao e-commerce sites.