Tencent and Baidu backed Wanda Group has bought a stake in Alibaba’s Alipay’s competitor, 99Bill, an online payment company, for a deal amount of USD 322 million. As part of the deal, 99Bill will continue to operate as an independent entity.
As per a TechinAsia report, in August this year, Wanda group had formed a USD 814 million joint venture with Wanda and Baidu to cooperate on mobile payments on Wanda properties. Currently, customers in more than 100 locations can use Tencent’s payment tools including WeChat Payments and TenPay to make purchases in-store. The number of these locations is expected to be increase and it seems that 99Bill will be added to the payment options.
Once this consortium of four companies- Wanda, Tencent, Baidu and 99Bill team up, they’ll directly compete with Alipay for electronic payments at brick-and-mortar stores.
Shanghai-based, 99Bill was launched in 2005, it provides email and mobile phone number based payment solutions. The firm also offers online marketing services, mass payment, data security, account refilling, bank and data card processing. Its partners include Bank of China, China UnionPay, CITIC Industrial Bank, Hua Xia Bank, NetEase, Ourgame, Kingsoft, and NetDragon.
Previously, 99Bill had raised USD 27M in 2012, USD 37.5M in 2010, USD 2M in 2009 and USD 15.1 M in series B round led by Lighspeed Venture Partners, DCM and Peninsula Capital.
Image Source: 99BillCategory Investments