Recently, a number of users of Ant Check Later or Huabei, a consumer credit product of Alipay, reported that they have received an upgrade prompt which requires users to agree to allow the company to access 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 so that users and enjoy post-payment shopping experience. When users shops, they can advance the quota of Huabei and repay the payment on the 9th of the next month after confirming the receipt. The interest-free period can be up to 41 days.
What needs to know is that many users choose to use Huabei because even if it is overdue occasionally, some functions of Alipay which users won’t pay much attention to will be affected. But now Huabei has started to access credit information in batches, commercial banks and credit financial institutions have richer dimensions when evaluating user qualifications.
Huabei responded that, under the premise of user authorization, the relevant information of end users will be gradually incorporated into the credit information system. By maintaining good usage habits, users’ credit records will not be affected. If there is any objection after the authorization, users can terminate it by closing Huabei.
Last year, Huabei began to promote its efforts of accessing the credit information system. On June 3 of this year, Chongqing Ant Consumption Finance Co., Ltd. was approved by China Banking and Insurance Regulatory Commission to begin accessing end users’ credit histories. Huabei is also included in the company and needs to submit relevant credit information of its users to the credit information system just like any other licensed financial institution.
Ant Group was called in for a regulatory meeting by the People’s Bank of China (PBOC) in April. “Ant must cut any improper connection between Alipay and other financial products, such as Huabei and Jiebei, and to fix irregular practices such as embedding credit business in payment links,” the PBOC said.