With the advent of Internet finance, payment processing companies have become very popular among various capital parties. This is especially the case for third-party payment processors and many listed companies have made such purchases. Very recently one more A-share listed company has acquired a third-party payment license. On 2 April, Hiteker announced that its application for changing the main contributor of CPP Pay, which is a third-party payment company acquired by Hiteker, had been approved by the People's Bank of China, marking the successful closure of the deal.

A number of capital giants have been involved in the mobile payment service business since 2015 and continue to fight for this market. But the People's Bank of China has approved no new licenses since March 2015. Capital tycoons, including listed companies, have resorted to indirect methods, the acquisition of companies that already have third-party payment licenses. For example, Haili Metal One intends to buy Union Mobile Pay, Highsun will hold Shanglian Payment, and MI has acquired Ruifutong, etc.

On 4 August 2015, Hiteker announced that they had signed an Equity Transfer Agreement with GC Digital and Arun—major shareholders of CPP Pay. According to the Agreement, Hiteker acquired 90.1% and 9.9% equity of CPP Pay held by GC Digital and Arun respectively with RMB 90.10 million and RMB 9.90 million cash, a total stock equity transfer price of RMB 100 million. In December that year, the People's Bank of China Shenzhen Central Sub-branch approved an application for the contributor change of CPP Pay. And the application has recently been approved by the People's Bank of China.

Disclosed information shows that CPP Pay was established on 5 November 2009. It is a comprehensive payment platform that combines the Internet, mobile phone, telephony and other diversified payment approaches. It mainly provides the B2C and B2B Internet and Mobile phone payment gateways, debit card quick pay, credit card quick pay, collection and payment business, as well as customised solutions. CPP Pay obtained a national payment license from the People's Bank of China in July 2014 and its payment platform is Tianfubao.

A payment business insider explained that the value of the third-party payment processors lies in the fact that they are a link in the financial chain and reflect client behaviour. They know where the capital goes and record the financial behaviour and history of their clients, which is very high value data. Groups that have third-party payment processors can obtain this key data and it is easy for them to build the closed loop of financial consumption. The acquisition of CPP Pay by Hiteker also reveals an intention to develop Internet finance. On 30 March, Hiteker released their 2015 annual report and it revealed that Internet finance was a new business focus for future development. “The Company will continue to perfect the business platform of Internet finance and explore potential client demands in coordination with the comprehensive service business of the original 3C retailing industry chain to create new profit drivers.”

But clearly Hiteker would not be satisfied with online payment only after acquiring CPP Pay. According to the introduction of the CPP Pay head, the average daily turnover of the Company exceeds RMB 100 million relying on the powerful resources of the Sanpower Group—which holds the Hiteker stock. In addition to the network payment license at hand, a license application for cross-border payment business by CPP Pay has passed review of the State Administration of Foreign Exchange and is currently undergoing the approval process.

The Hiteker 2015 annual report also reveals that after the application for changing the contributors of CPP Pay, Hiteker will begin to prepare the relevant cooperation with regards to payment. The Company will also negotiate and sign agreements with upstream and downstream cooperation units and develop the internal business process. The focus is on advancing the implementation of the Tianfubao business as well as the promotion and utilisation of the Hisap stores, which are wholly-owned as a subsidiary of Tianfubao, by Hiteker. “The Company will discuss the commercial value of the supply chain finance, consumer finance, Internet information service, the credit information system and the feasibility of achieving good business structure, and then carry out the relevant planning work needed.”