Alipay’s consumer loan service provider Huabei to access credit information system

Recently, a number of users of Ant Check Later or Huabei, an Alipay consumer credit product, reported receiving an upgrade prompt that requires users to agree to allow the company access to their financial credit information. If users do not choose to upgrade, it may affect the use of the service.

Launched in April 2015, Huabei serves as a virtual credit card for users to enjoy a shopping experience after payment. When users make their purchases, they can advance Huabei’s quota and refund the payment on the 9th of the next month after confirming receipt. The interest-free period can be up to 41 days.

What you should know is that many users choose to use Huabei because even though it is sometimes late, some functions of Alipay that users will not pay much attention will be affected. But now, Huabei began to access batch credit information, commercial banks and credit financial institutions have richer dimensions when assessing user qualifications.

Huabei replied that, under the user’s authorization, the relevant information of end users will gradually be integrated into the credit information system. By maintaining good usage habits, users’ credit records will not be affected. If there is any objection after authorization, users can terminate it by shutting down Huabei.

SEE ALSO: Tencent incubates new financial product Fenfu to take on Ant Financial’s Huabei

Last year, Huabei began to promote its efforts to access the credit information system. On June 3 of this year, Chongqing Ant Consumption Finance Co., Ltd. has been approved by the China Banking and Insurance Regulatory Commission to start accessing end-user credit histories. Huabei is also part of the company and must submit the relevant credit information of its users to the credit reporting system like any other authorized financial institution.

Group of ants has been called for a regulatory meeting by the People’s Bank of China (PBOC) in April. “Ant must cut any inappropriate link between Alipay and other financial products, such as Huabei and Jiebei, and correct irregular practices such as the integration of credit activities into payment links,” the PBOC said.

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