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Rumor: Didi Chuxing Acquires Payment Processing License

Paynews.net, 3/13/17

Xiaoju Kuaizhi Inc ("Didi Chuxing"), operator of Chinese mobile taxi booking and car hire apps Didi Chuxing and Kuaidi Dache, has reportedly fully acquired Beijing-based 19Pay Technology and obtained its payment processing license, according to a source with knowledge of the matter speaking with Chinese news site Paynews.net.

The source said that the transaction price was RMB 430 mln, and that 19Pay will be officially taken over by Didi Chuxing in July or August.

Chinese online video content and smart device firm Leshi Internet Information and Technology (300104.SZ) previously approached 19Pay, but walked away because 19Pay asked too high a price, said the source.

19Pay was founded in 2010 and received an internet payment business license from the People's Bank of China in 2013. The license is up for renewal in July. 19Pay's sole stockholder is high-tech private enterprise Beijing Gaoyang Jiexun Information Technology, which was founded in 2005. Gaoyan Jiexun is a major contractor building business support systems for domestic communications carriers, and Gaoyang Jiexun's business operations include telephone charges, mobile data, games, phone cards, e-commerce gift cards, and third-party e-payments.

Editor's Note: In response to Marbridge's request for comment today, a Didi Chuxing public relations representative did not clearly confirm or deny the rumored deal, but said: "Mobility covers a rich diversity of payment scenarios. Didi Chuxing has kept extensive dialogue with partners in this industry. We continue to focus on our core transportation business and do not have plans to enter the payment business."

Keywords: third-party payment ridesharing 19Pay license wireless Xiaoju Kuaizhi Didi Chuxing car hire app taxi booking app

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