Another OTA platform has entered the payment sector. On September 25, it was exclusively learned that Elong Network Information Technology (Beijing) Co., Ltd. (hereinafter referred to as "Elong Network"), an affiliate of TONGCHENGTRAVEL Group, has obtained a payment license through the acquisition of 100% equity in Xinsheng Payment Co., Ltd. (hereinafter referred to as "Xinsheng Payment"). Currently, Xinsheng Payment's business registration information has been partially updated, and according to insiders, relevant information will also be disclosed by the central bank.

Regarding the rationale behind this move, Elong Network responded that after completing the acquisition, Elong Network will directly benefit from the development of Hainan Free Trade Port, using payment as a bridge to actively seize strategic opportunities in cross-border commerce and cultural tourism consumption, while providing support for the continuous digital upgrade of cultural tourism consumption scenarios.

**01** **Acquiring Xinsheng Payment for License**

According to insiders, TONGCHENGTRAVEL obtained this payment license through a full acquisition, with the acquiring entity being its subsidiary Elong Network.

Looking at the acquisition target, Xinsheng Payment was established in 2008 with a registered capital of 100 million yuan, originally belonging to HNA Group. It obtained payment business approval from the central bank in 2011, initially authorized to conduct internet payment and prepaid card issuance and acceptance services. After merging the payment business of Zhejiang Shengju Payment Technology Co., Ltd., it added bank card acquiring services (in Zhejiang, Jiangsu, Hainan, Fujian, and Sichuan provinces). Following industry regulations' redefinition of payment business types, Xinsheng Payment is currently authorized to conduct stored-value account operation Class I, stored-value account operation Class II (nationwide), and payment transaction processing Class I (in Zhejiang, Jiangsu, Hainan, Fujian, and Sichuan provinces). The license is valid until May 2026.

In fact, with the payment industry entering a mature phase and new license applications being restricted, indirect license acquisition through M&A has become virtually the only option for prospective entrants. Meanwhile, some small and medium-sized payment institutions have been forced to "sell themselves" due to poor management or legal disputes. In 2018, HNA Group held an asset transfer promotion meeting, planning to sell 100% equity in Xinsheng Payment, though no follow-up materialized.

Regarding the choice of transaction target, industry insiders noted that Xinsheng Payment, as one of the first third-party payment institutions to obtain the People's Bank of China's "Payment Business License," is not only currently the only payment legal entity in Hainan Province with a full license, but also an important participant in cross-border e-commerce digital renminbi trials. With Hainan Free Trade Port's customs closure by the end of 2025, Hainan will enter a new phase of building a high-level free trade port, and Xinsheng Payment, with complete cross-border payment qualifications, will gain more development opportunities.

"On one hand, the license qualifications are comprehensive. Xinsheng Payment's business types are diverse, including not only internet payment qualifications but also bank card acquiring, prepaid card issuance and acceptance, and cross-border renminbi payment qualifications, with potential future applications for cross-border renminbi exchange qualifications, fully meeting various business line needs. On the other hand, it has inherent regional advantages, allowing fastest access to Hainan Free Trade Port preferential policies," the industry insider said.

**02** **Benefiting from Hainan Free Trade Port Development**

The choice of Xinsheng Payment also reflects TONGCHENGTRAVEL's overall strategy to seize cross-border and cultural tourism consumption opportunities. Elong Network responded that after completing the acquisition, Elong Network will directly benefit from Hainan Free Trade Port development, using payment as a bridge to actively seize strategic opportunities in cross-border commerce and cultural tourism consumption, while providing support for the continuous digital upgrade of cultural tourism consumption scenarios.

Testing revealed that the TONGCHENGTRAVEL app mainly provides hotel booking, flight booking, train ticket purchasing, taxi services, etc., covering many popular domestic and international tourist cities, as well as performance and movie ticket sales, and a mileage mall. Available payment methods for these services include WeChat Pay, Alipay, and bank cards.

Of course, compliance is another factor that cannot be ignored. In recent years, financial regulatory authorities have continuously emphasized that financial business must be conducted with proper licenses. According to the "Non-bank Payment Institution Supervision and Management Regulations," unauthorized establishment of non-bank payment institutions or conducting payment business without proper approval will result in closure by the People's Bank of China and confiscation of illegal gains.

"Previously, without a payment license, cooperation with external licensed payment institutions was necessary, generating high service fees and channel costs. Payment is a high-frequency service that helps platforms accumulate user authorization data and cross-sell other financial services, expanding service depth and breadth," said Du Juan, Senior Researcher at Suzhou Merchants Bank Research Institute.

It's worth noting that obtaining a license is just the beginning. For platforms, beyond relevant business layout planning, subsequent compliance challenges must be faced. For institutions holding internet payment and bank card acquiring qualifications, anti-money laundering, customer identity verification, transaction account management, reserve fund management, and clearing management are all potential pitfalls.

Su Xiaorui, Senior Researcher at Suxi Intelligence Research, further emphasized that given the current strong regulatory stance in the third-party payment industry, with million or even ten-million yuan fines appearing multiple times this year, it's recommended that TONGCHENGTRAVEL improve its payment compliance and internal control systems as soon as possible after acquiring the payment license, learning from internet platforms' lessons in the payment field and continuously refining payment management and risk control mechanisms.

**03** **Orderly Expanding Service Boundaries Within Compliance Framework**

It was noted that TONGCHENGTRAVEL Group also indirectly holds multiple other types of financial licenses, and fellow leading OTA Ctrip has long been involved in payment, micro-lending, and consumer finance.

A payment license is undeniably important for internet players in building account systems and perfecting ecosystems. Su Xiaorui noted that a certain short video platform's consumer finance business is still in development due to lagging payment license acquisition compared to other content traffic platforms. The same applies to the OTA sector - Ctrip's equity participation in licensed consumer finance and its wholly-owned online micro-lending have more mature profitability and ABS issuance capabilities. Additionally, its flagship product "Naqihua" leverages payment license account systems to directly embed credit products into OTA scenarios, significantly improving the efficiency of monetizing scenario traffic through financial services.

Building financial ecosystems and forming closed loops between business and traffic has become a necessary path for current internet giants. Senior industry professionals evaluated TONGCHENGTRAVEL's move as follows: First, completing license layout and strengthening compliance foundation. Currently, leading platforms' financial business development has shifted from "scale expansion" to "quality improvement." Payment licenses, as key financial business infrastructure, help enterprises orderly expand service boundaries within compliance frameworks.

Second, strengthening business synergy and building ecosystem closed loops. "Payment, as the underlying support for commercial transactions, is the core hub connecting users, merchants, and scenarios. Using payment tools as an entry point, enterprises can not only connect the full chain from C-end consumption to B-end services but also integrate multi-party resources through open platforms, enhancing overall business stickiness and vitality."

Finally, responding to industry competition and enhancing digital capabilities. Against the backdrop of deepening digitalization, core licenses like payment and consumer finance have become "standard configurations" for leading enterprises. Perfecting license systems not only helps build more complete financial business segments but also injects strong momentum for enterprises' continued transformation in the digital economy era.