Xiaomi launches mobile payment app in China

Xiaomi, China’s $45bn global distributor of 65m smartphones, intends to launch its own mobile payments system in conjunction with China UnionPay and several major Chinese banks, as part of an undisclosed agreement. The new service may allow Xiaomi to expand its 15% share of the market to become a viable internet services company, generating substantial revenue from its vast smartphone customer network, amidst the recent economic slowdown in its home market. The news follows Xiaomi’s January 2016 acquisition of a 65% stake in Jeifu Ruitong, the Chinese mobile payments firm that possesses the requisite license for Xiaomi’s new internet payments venture. Xiaomi will compete with Alibaba Group’s AliPay, which accounts for 47% of China’s online payments market, and Tencent Holdings’ TenPay, which has a 20% share.

Lei Jun, founder and CEO of Xiaomi, introduces the new Xiaomi 5 smart phone on February 24, 2016. Photo: Simon Song