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The End Of Chinese Fintech

Chinese private payments companies once served as the driving force behind financial innovation, leading to the emergence of numerous financial service providers. However, this landscape is undergoing a transformation. While money was abundant in the Chinese economy, startups eagerly seized opportunities to put it to use.

Yet, with declining interest rates, reduced loan demand, and changing economic dynamics, it appears that the fintech sector might be entering a phase of decline.

China was an early adopter of online and mobile payment solutions, with Alipay launching in 2004 and Tenpay in 2005, later merging into WeChat Pay when it was introduced in 2013.

These two payment giants are celebrated for their market dominance and their ability to outpace the state-backed competitor, UnionPay, by pioneering online payment solutions and breaking the state’s payment monopoly.

But now the end is near.

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