99Bill Corporation, a leading independent electronic payment services provider in China, has launched a new service offering installment credit, which enables consumers to buy goods by paying in installments. This is the first of its kind in China's electronics payment service market.
The installment credit offered by 99Bill is considered very user friendly. When a consumer places a purchase order to 99Bill's partners, he or she can apply for the installment credit service by simply choosing the bank and the periods, providing his or her name, credit card number, and the expiration date. Usually the application will be processed within minutes.
After the application is approved, consumers will be able to enjoy the convenience brought by the installment credit. Consumers don't need to pay interest. Currently 99Bill's installment credit service covers credit cards issued by several banks including the Bank of China and Industrial Bank. In the future more banks will join this service offering.
According to the People's Bank of China, the country's central bank, China had issued more than 87.5 million credit cards by 2007. The credit cards are playing an increasingly crucial role in China and credit-card-related products and applications are also enjoying growing popularity. Since a number of banks launched the installment credit service last year, buying goods by paying installments has been growing in popularity in China. Research has found that 76 percent of the Chinese youths are interested in installment credit and are willing to try this nascent service.
Credit consumption, as a lifestyle in developed countries, is widely used in shops, franchised stores, and even driving schools and educational institutions. Credit consumptions in China remains in the very initial stage and the installment payments are largely limited to spending on items like TV sets, notebook PCs, mobile phones and digital cameras. There are still many hurdles which need to be cleared. For instance, the application process is quite lengthy and complicated and settlement with different banks is also quite time-consuming and arduous. Also, it is sellers are responsible for the operations and risk management, which has thwarted the popularization of installment credit.stallment credit.
Industry observers believe the installment credit service launched by 99Bill will create a multi-win situation. It will help banks to better tap into the credit card market, increase the user loyalty and cut operational costs. It will also provide consumers with a convenient and cost-efficient choice.
Oliver Kwan, founder and CEO of 99Bill, said that with the gradual maturity of the credit card market consumers will be able to buy a wider range of goods by paying in installments. To cater to that trend, 99Bill will enhance and expand its partnership with banks and other financial institutions to develop new payment products and service offerings to maximize the convenience brought by the credit cards to consumers.
Developing the payment products and service offerings targeting individuals is now one of the top priorities for 99Bill. As the leading third-party payment service provider in China, 99Bill has already developed a number of applications targeting individuals including credit card bill payments, installment payments and cellular phone replenishing. The company plans to launch more new products to meet consumers' demands. By July 31, 2008, 99Bill had signed up 26 million registered users and more than 150,000 partners and has firmly maintained its market dominance.
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