Tencent has launched a new function called Fenfu inside its ubiquitous WeChat app, allowing some users to acquire goods and repay the bill at a later date.
The firm said to KrASIA that Fenfu, which targets those unable to get traditional credit cards, will become accessible to more users gradually.
“Fenfu is a brand-new quasi-installment consumer loan product, which, after being activated, allows users to borrow money anytime they want, and repay anytime they like, with interest being calculated by days,” Tencent said on Friday in a written statement.
The virtual credit card service, which Tencent started to develop last September, as KrASIA reported, will potentially allow the tech giant to compete with Ant Financial, which has a virtual credit card service called Huabei allowing microloans to be repaid by installments, also offering an interest-free period.
Although previous reports indicated that Fenfu will also offer interest-free loans, Tencent confirmed that such service will not be available.
This article is part of KrASIA’s “China Brief” section, where KrASIA’s reporters will provide quick daily updates about the tech ecosystem in China.