The benchmark Huayan installment is intended to compete for offline payment market share.

WeChat payment can realize installment payment.

Since March 25th, some users have launched the “share payment” function on WeChat. The function entry is located in the third column of “My-Pay-Wallet-Distribution” under the change, change. When using WeChat payment, users can use “share payment” to make payment first, and then make installment payment.

This is a new personal installment payment product launched by WeChat. From Tencent’s customer service information, we can learn that, like other similar personal consumer loan products, split payment is a payment method used on WeChat that can be consumed before payment.

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In the process of opening WeChat payment and consumption, users do not need to apply for instalment in advance, they can simply choose instalment when paying. When paying, the user does not have to withdraw cash in advance, and can directly select “shared payment” when paying.

In terms of interest settings, one of the biggest differences is that the traditional instalment product is calculated by multiplying the principal by one rate and paid in installments. With monthly repayments, the principal is reduced and interest is unchanged. The “shared” interest is calculated based on the number of days the user actually uses it, and the accumulated interest is paid when repaying. After repayment, the principal is reduced and the interest is also reduced.

The repayment date can be specified by the user, and supports any repayment in advance without paying a handling fee. The minimum repayment of each period is 10%, which can be used continuously after paying off in a single month. The payment mechanism has also been set up. Once the user is overdue for more than 30 days, the WeChat payment points will be discontinued.

“Distribution” products have been announced in the market for a long time, and they are regarded as “strong rivals” of Huayao and Jingdong Baitiao . However, judging from the current product form, the strict benchmarking of “payment” is actually “flowering instalment”, which is similar to credit card instalment. However, the split payment changed the “monthly settlement” to “day-to-day interest”, and the interest decreased as the principal decreased.

Before the split payment went online, WeChat already had a consumer loan product called “Particle Loan”. According to reports, Microparticle Loan is an online small credit revolving consumer loan product launched by Weizhong Bank in 2015. It is mainly targeted at WeChat and QQ users. The entrance is located on the second grid of the WeChat payment page.

From the nature of the product, “distribution” is more closely related to the consumption scenario, and only when using WeChat paymentIt can only be used under the premise. The micro loan is a cash loan, and the loan amount can be withdrawn to the bank card. In comparison, the payment and repayment settings are more flexible and tied to WeChat payment. It is worth noting that the payment is also more focused on offline consumption scenarios. Similar to the counterattack of WeChat red envelopes in the payment market at that time , the launch of the “shared payment” function is intended to compete for market share in the offline payment market.

At present, split payment is still in the grayscale test, and this function will gradually be opened to more users.

Head picture: Visual China