The following article is reprinted with permission from Redtech Advisors.
This story is a great consumer snapshot from Quartz, which follows the one-day usage habits of Vivi Chen, a 31-year-old resident of Chongqing, a city in China’s southwest. JD comes out looking pretty good in the piece, and Chen is an early user of the site’s consumer credit service Baitiao, which launched in early 2014.
Baitiao is part of JD’s internet banking service, which is one of the three pillars of JD value-added services: the other two being logistics and technical support. The company hasn’t released many details about Baitiao, but it’s currently a very small part of the business – for instance, JD opened up 500k accounts in February 2014 (less than 1% of active users) and offered a maximum credit line of RMB15,000 per applicant.
No specifics on how it manages risk, but slower growth of the Baitiao user base is reportedly because it’s imposing strict requirements in the early stages. Users also need to link an existing credit card to the service. Consumers may pay off the full amount within 30 days or in installments based on increments of 3, 6, 12 and 24 months. Alibaba has a similar service called Ant Check Later, with a credit line approval based on user’s previous transactions in the Alibaba ecosystem.