China Mobile, with its over 500 million subscribers, has confirmed that it has purchased a stake in a local bank to enhance its mobile payment offerings. .
When China Mobile bought a 20 per cent stake in Shanghai Pudong Development (SPD) Bank, it was making more than just another strategic investment.
The deal, announced last month and worth 39.8 billion yuan (Dh21.41bn), saw the company with the world’s highest number of mobile phone subscribers secure a platform that could prepare the world’s most populous nation for mobile phone banking. SPD Bank shareholders approved the deal last week.
With more than 500 million subscribers, China Mobile towers over its rivals, in part due to its hard work in building up network coverage across the whole nation, making it a particular favourite among rural users.
But with its competitors buoyed by the central government’s wish to see a more open and competitive marketplace, with broadcasters and cable network operators entering the telecommunications market, China Mobile has been looking to diversify and offer a wider range of services to help sustain its strength in the marketplace.
When the deal was announced, China Mobile confirmed that it was determined to enhance its mobile payment services.
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