Pintec Technology Holdings Limited (“PINTEC”) (Nasdaq: PT), a leading independent technology platform enabling financial services in China, today announced it has joined a partnership to help launch next-generation handset financing for China Mobile’s subscribers.
PINTEC, together with a national consumer financial company approved by the China Banking Regulatory Commission, will develop a digital lending solution for China Mobile Group Electronic Commerce Co. Ltd. (“China Mobile E-commerce”), a fully-owned subsidiary of China Mobile Ltd. that specializes in mobile payment technologies and operations.
China Mobile E-commerce runs the carrier’s Hebao business, an NFC-based mobile payment system that functions as a digital wallet targeting personal and institutional clients. China Mobile is the country’s largest mobile telecom company by market capitalization, with the world’s largest network and customer base of over 902 million subscribers, as of June 2018.
Leveraging its state-of-the-art financial technologies and rich experience in customer acquisition and point-of-sale financing, PINTEC’s installment loan solution will help add an efficient financing option to Hebao that allows customers to buy mobile phones online and offline with zero or limited down payment.
The installment loans will be fully covered by cash incentives offered by China Mobile, which means customers can enjoy price reductions averaged at RMB1,500 ($222) on handset orders, depending on their line of credit, subscription plans, and incentive policies from province to province.
“The new services will largely help ease the financial pressure of customers and boost the consumption of mobile phones,” said PINTEC President Zhou Jing. “It’s a win-win situation. With PINTEC’s fintech knowhow, I believe this partnership will bring customers a superb handset shopping experience in the future.”
Consumer electronics such as mobile phones have been upgrading fast in recent years, driven by IT development and market competition, which boosts consumer demand for these products. According to a recent report from Counterpoint Research, a global industry analysis firm, Chinese consumers update their mobile phones every 22 months, while the global average is 21 months.
“We see a huge market in handset financing, which will in turn help lure and retain customers,” said Zhou. “PINTEC is more than willing and has full capabilities to further tap into this same market beyond China, together with local telecom operators and other potential partners. Our customizable and modular digital lending solutions, based on technologies including artificial intelligence and big data, are readily replicable and transferrable with high efficiency and effectiveness.”
