China’s largest ride-hailing company, Didi Chuxing, has acquired a much-coveted license to join the booming Chinese internet financial services sector, Caixin reports. Didi has bought out third-party payment services provider 19Pay for RMB 300 million ($45.4 million), according to a statement by Shanghai-listed GoHigh Data Networks Technology Co released Tuesday.
GoHigh Data said its board approved its subsidiary Gaoyang Jiexun Information Technology, which wholly owns 19Pay, to sell the stakes in the payment firm to Didi. The deal will mean Didi – now the dominant ride-hailing force in China following Uber‘s retreat from the country – will have a license for online-payment business.
Didi made the investment through its wholly owned subsidiary Shanghai Shiyuan Technology, which paid a deposit of RMB 90 million for the transaction, according to the statement. The People’s Bank of China (PBOC) has approved the transaction, the company said.