Reuters has reported that TikTok’s parent company ByteDance has acquired UIPay. The acquisition could lead to a TikTok Pay feature in the future. UIPay is a Chinese third-party payment service. The acquisition is a bid to leverage its domestic payment capabilities.
A lot of companies have been focused on implementing their own mobile payments system. When Apple launched Apple Pay others quickly followed behind. After that, there was Samsung Pay, Google Pay (formerly Android Pay), LG Pay, and others. It wasn’t just phone manufacturers though. Even Facebook has its own payment system used for payments. Now TikTok Pay could be next.
Now it seems like ByteDance is getting in on the peer-to-peer payment game. ByteDance bought UIPay’s operator Wuhan Hezhong Yibao Technology Co. This purchase came via an entity called Tianjin Tongrong E-commerce Co according to the national business registration portal. August 28 is when the official change of ownership happened.
ByteDance owner and CEO Zhang Yiming owns Tianjin Tongrong. According to ByteDance “the acquisition is to supplement the existing major payment options, and to ultimately enhance user experience on our multiple platforms in China.”
UIPay was established in 2012. It obtained a third-party payment license from China’s central bank in 2014. There had been rumors since 2018 that ByteDance had already acquired UIPay. But ByteDance denied this by saying that the two companies were only business partners.
Is TikTok Pay on the way?
ByteDance seems to have been planning the move for some time. According to LinkedIn ads ByteDance has been hiring globally. Most notably within Singapore. They have been hiring to create a team focused on building a network and platform providing cross border payments solutions.
ByteDance has applied for a digital banking license in Singapore according to two sources. ByteDance has also denied this. The news of ByteDance looking to build a team for cross payment solutions shouldn’t come as a surprise.
Recently, In its home country of China ByteDance has already been leveraging its online finance business. It obtained a micro-lending license back in July. They are also taking steps to move into the online stock brokerage and wealth management business in Hong Kong.
ByteDance may be planning to expand its online payment services in various countries, but it is safe to say that the U.S. will not be one of those countries.
ByteDance has been having a rough time here in the U.S. They were ordered by the President to dissolve TikTok or face a ban. Since that initial threat, it has been a wild ride for the company as they have searched for a U.S. buyer.