21st Century Business Herald, 9/13/13
Shenzhen-based internet company Tencent's (0700.HK) Tenpay online payment service will partner with fund management firms China Asset Management, E Fund Management, GF Fund Management, and Haifutong Fund Management to release an online finance product. According to an industry insider, the product will be released in September. The product shares similarities with third-party payment processor Alipay's account balance fund investment service "Yu'e Bao."
Tenpay had previously considered two proposals for its account balance investment service. The first, "WeChat Salary Card," proposed binding users direct deposit salary payments with Tecent's Tenpay online payment service. Upon linking direct deposit accounts with "WeChat Salary Card," users would see their paychecks deposited automatically into one of Tencent's partner investment funds. The second proposal is much similar to the Yu'e Bao service, in which users voluntarily deposit funds into Tenpay's account balance VAS product. Tencent has chosen the Yu'e Bao-style service moving forward, and will not release a direct deposit product, according to the insider.
Editor's Note: For more background on this topic, please see "Alipay Account Balance VAS User Deposits Reach RMB 10 Bln" MD 7/15/13 and "Tencent to Establish Open Financial Platform" MD 7/17/13 issues.