Xiaohongshu Acquires Payment License via Takeover of Oriental Electronic Payment
Chinese lifestyle platform Xiaohongshu, also known as Rednote, has successfully secured a payment license by completing the full acquisition of Oriental Electronic Payment. Through this transaction, Xiaohongshu’s subsidiary, Ningzhi Information Technology (Shanghai), has become the sole shareholder, replacing six previous owners who have exited the company. Oriental Electronic Payment holds a license from the People’s Bank of China and specializes in operating stored-value accounts and facilitating cross-border payments. As part of the acquisition strategy, the registered capital of Oriental Electronic Payment will be increased from RMB 121.3 million to RMB 200 million (approximately $28 million). This capital injection aligns with strict regulatory requirements for payment license renewal in China. The move reflects a broader trend among digital platforms in the country, where tightening regulations on new license issuances are driving companies to pursue acquisitions of existing licensed entities to ensure compliance and expand their financial service capabilities. This strategic acquisition allows Xiaohongshu to integrate payment solutions directly into its ecosystem, enhancing user experience and operational autonomy.
Wire timeline
Xiaohongshu Acquires Payment License via Takeover of Oriental Electronic Payment
Chinese lifestyle platform Xiaohongshu, also known as Rednote, has successfully secured a payment license by completing the full acquisition of Oriental Electronic Payment. Through this transaction, Xiaohongshu’s subsidiary, Ningzhi Information Technology (Shanghai), has become the sole shareholder, replacing six previous owners who have exited the company. Oriental Electronic Payment holds a license from the People’s Bank of China and specializes in operating stored-value accounts and facilitating cross-border payments. As part of the acquisition strategy, the registered capital of Oriental Electronic Payment will be increased from RMB 121.3 million to RMB 200 million (approximately $28 million). This capital injection aligns with strict regulatory requirements for payment license renewal in China. The move reflects a broader trend among digital platforms in the country, where tightening regulations on new license issuances are driving companies to pursue acquisitions of existing licensed entities to ensure compliance and expand their financial service capabilities. This strategic acquisition allows Xiaohongshu to integrate payment solutions directly into its ecosystem, enhancing user experience and operational autonomy.
TechNode