Recently, a credit rating report specifically for asset-backed special plans revealed insights into WeChat's consumption loan product "Fenfu," which has operated discreetly until now. The report covered a pool of 2.76 million borrowers and 10.02 million loans, highlighting an average loan balance of merely 217.14 Yuan and an average amount per loan of just 59.83 Yuan, with a weighted average annual interest rate of 15.02% (equivalent to a daily rate of 0.041%) and an average loan age of 1.51 days. The average age of borrowers is approximately 34 years.

This suggests that in scenarios involving small, frequent daily expenses, younger generations, particularly those born in the '90s and '00s, are willing to spend a little more using credit loan products.

Launched in a limited scope in 2020 and gradually expanded, WeChat Fenfu has also undergone tests for features such as "installment" and "borrowing." Despite the low individual loan amounts and low profile of its operations, the loan size of Fenfu has rapidly increased. As of June 2025, the loan balance surpassed 100 billion, reaching 112.588 billion Yuan, compared to approximately 12.9 billion Yuan for WeChat Payment's small loans as of June 2024.

The small, high-frequency consumption loan sector has garnered the attention of financial institutions. The operating entity of Fenfu, Chongqing Weiheng Technology Co., Ltd. (hereinafter referred to as "Weiheng Technology"), appears on the lending support lists from several licensed financial institutions such as Bohai Bank, Chengdu Bank, and others, with Weiheng Technology reporting a net profit of 124 million Yuan for the entire last year.

Tencent has been cautiously paving its way in the consumer finance sector through its WeChat application. Users can find Fenfu in the "Wallet" section, used for daily expenditures like dining and shopping, albeit not for sending red packets. Interest accrues daily at a rate of 0.04%. The loan service is provided by Shenzhen Tenpay Financial Network Co., Ltd. ("Tenpay Small Loan"), with operations managed by Weiheng Technology.

Distinct features of WeChat Fenfu's credit assets are its "small amount," "high frequency," and "extensive dispersion," contributing to a significant quality advantage over other consumer loan assets. Data reveals that among the overdue principal balance of 600 million Yuan in the asset pool, 547 million Yuan are loans below 2,000 Yuan, constituting 91.2% of the total count.

Moreover, a striking characteristic within the asset pool data is the average loan age of just 1.51 days, with the maximum being 4 days, indicating that borrowers forget to repay at most for a brief period.

Fenfu's repayment structure ties borrowers' credit behavior closely with their usage of WeChat Payment. Borrowers can repay any amounts at any time, with a default minimum installment of 10% allowing continued usage the following month. Automatic repayment occurs via balance, WeChat Pay, or savings account on the due date; however, if a borrower's repayment becomes overdue for a prolonged duration, their WeChat Payment access will be restricted.

The data demonstrate that between April 2021 and October 2024, the highest delinquency rate for new loans was approximately 2.00%, remaining under 1.5% since 2023.

In the broader consumer finance market, WeChat Fenfu is often likened to Ant Group's Huabei, centered around high-frequency consumer needs. The key difference lies in their billing methodologies—Fenfu charges daily from the start, while Huabei offers interest-free terms, with an average outstanding amount per transaction being only 90 Yuan last year.

Additionally, Weiheng Technology has ventured into a new "borrowing" feature, allowing users to apply for a loan to their bank accounts for urgent expenses, provided they have made purchases of 100 Yuan within the last 30 days without using Fenfu.

Similar to other internet-based loans, Weiheng Technology is not only the service partner for Fenfu but is also part of Tencent's fintech ecosystem as a lending support platform. Established in June 2022, Weiheng Technology specializes in technical support and management services for various stakeholders, ranging from customer service to operational supports.

On October 1, new regulations aimed to improve the financial service quality of internet lending business came into effect, leading to disclosures about platforms and credit enhancement services. Weiheng Technology appears in partner collaborations with institutions like WeBank and Bohai Bank for lending support.

As of mid-2025, Fenfu's loan balance reached 112.588 billion Yuan, closing in on the 140.1 billion Yuan balance of major lending platform Qifu Technology. Weiheng Technology's revenue now closely mirrors intermediate lending platforms, supported by audited reports stating total assets of 1.605 billion Yuan and net profits of 124 million Yuan for the last year.

This underscores both the technological capabilities and value of internet giants and the potential of young consumers in installment-driven spending.

— The borrower demographics showcase that out of the vast pool, approximately 8 million loans were taken by individuals aged between 20 and 40, collectively representing 77.66% of the total unpaid balances, with an average weighted age of 34.91 years, capturing the essence of the '90s and '00s demographics.

The lending landscape reflects significant consumer interest in installment payment options, corroborated by extensive research findings that highlighted that 59.5% of survey participants engaged in installment services last year. Furthermore, significant proportions of returning youth and high net-worth individuals demonstrated a propensity for frequent installment usage.

Overall, installments have emerged as a competitive battleground in the consumer lending landscape, with major financial institutions pivoting to partnerships with platforms that possess transaction data, creating more accurate borrower profiles reflecting creditworthiness.