After obtaining a license for small loans in November 2016, Meituan Xiaodai (美团小贷) began to provide businesses on its platform unsecured loans with terms ranging from 6 to 18 months. There were 5.5 million businesses on Meituan platform as of the end of 2017.
The company has also begun extending credit to users. Meituan Shenghuofei (美团生活费), unveiled earlier this year, is a short-term cash loan.
Revenue sources of its loan business include interest income from balance-sheet loans and facilitation fees from loans funded by banks and other financial institutions.
Meituan runs credit screenings using big data techniques and has implemented anti-fraud systems. It also provides guarantee services for certain borrowers to banks and other financial institutions.
Its small loan company took out a one-year term loan from China Merchants Bank in 2017 at an interest rate of 4.785% per annum.
Apart from the loan business, Meituan also owns payment service company Qiandaibao (钱袋宝), which holds a license for non-financial institutions to run online payment services, and a 28.5% stake in Jilin Yilian Bank (吉林亿联银行), a private bank opened in May 2017. The revenue from Qiandaibao since it was acquired by Meituan in August 2016 has been minimal and it has also contributed a minimal loss, according to the Meituan filing.