JD.com is on the headlines for partnering with China UnionPay to streamline JD Financial systems. The partnership benefits JD Financial as China UnionPay has a well-established financial infrastructure, with almost the most branded bank card in China. Many companies know China UnionPay for its crucial role in offering innovative financial solutions. The partnership also allows cooperation in different fields, including rural financing programs, online payment solutions, rural eCommerce, extensive data analysis, co-branded credit cards, risk control, and international market expansion. The partnership creates an avenue for JD.com to benefit from China UnionPay’s acquisition network.
According to Shi Wenchao, China UnionPay Executive President, the partnership comes when China market is shifting from a cash-driven economy to a digital payment economy. Chen Shengqiang, JD Financial CEO, highlighted during the signing of the agreement that the first collaborative initiative by JD.com and China UnionPay will be on enhancing and customizing the online shopping experience for all JD.com’s customers in China. By exploiting China UnionPay’s networks, JD.com will develop new contactless payment options (online payment) for all its customers.
Risk analysis and control will then become the area of focus according to the agreement between JD Financial and China UnionPay. JD.com has robust and risk control systems, hence protecting users’ transactions and personal data. The integration of China UnionPay’s management platforms with JD.com’s complex management models will offer a hybrid system that will provide customers with safe, more manageable, and convenient payment options.
JD Financial, established in 2013, is JD.com’s financial technology unit. The JD Financial arm has a primary objective of ensuring customers get quick, easy, and convenient financial services. Since its establishment, the JD Financial department has successfully offered comprehensive financial solutions in supply chain financing, crowdfunding, asset management, and consumer credit. In November 2016, JD.com re-organized JD Finance to serve as an independent entity, enabling it to apply for licenses in the field.
JD.com, one of China’s largest eCommerce enterprises, is led by its founder, Richard Liu, as its CEO and Executive President. Richard Liu gets assistance from Jon Jianwen, Sandy Ran Xu, and Pang Zhang, who serves as Chief Strategist Officer, Chief Financial Officer, and Chief Human Resource Officer. JD.com has numerous independent arms, including JD Retail, JD Financial, JD Technology, and JD Logistics, led by Lei Xu, Chen Shengqiang, Bowen Zhou, and Rui Yu, respectively. Their leadership skills and prowess have enabled JD.com to become the largest online retailer store in China. It is also a member of the Fortune Global 500 and NASDAQ100.
JD.com’s commitment to quality and authentic products has progressively seen its sales grow over the years. The eCommerce brand has different sale categories, including cosmetics, fresh food, and electronics. To ensure it satisfies all its customers with a wide range of products, JD.com has partnered with different manufacturers worldwide. Through the elaborate network offered by JD Logistic, the eCommerce retail giant can provide same-day and next-day deliveries to its customers across China. The company’s increase in direct sales results from the effective supply chain controlled entirely by the online firm. JD.com has also limited the number of suppliers to be able to monitor the quality of products.