Lotte Duty Free says it is preparing for the return of Chinese travellers by introducing popular Chinese micro-loan payment service from Alibaba subsidiary, Ant Group, ‘Huabei’, on 27 October.

 

Huabei, one of Alibaba’s online payment platform services, has recruited 400 million Chinese users in only five years since it launched. Lotte insists that it is ‘particularly popular with young people’, with half of its users aged under 30.

 

The service, powered by Ant financial, will be available from Lotte Duty Free’s ecommerce site.

 

The micro-loan system allows customers to ‘borrow’ a small amount at first and increases the credit limit depending on whether or not it is repaid.

 

HONGBAO EVENT UNTIL 10 NOVEMBER

Consumers can purchase goods within their limit, and have the option of paying off their loan in 12 monthly installments.

 

Since its launch in 2015 the number of users has surpassed 400 million (as of the end of 2019), and has quickly become a part of everyday life in China, according to Lotte.

 

The Korean travel retail giant said that about 80% of sales to Chinese customers made via its website are in their 20s and 30s, which is why it makes sense to introduce the new service which is already popular with this age group.

 

To celebrate the new Huabei service, Lotte Duty Free will hold a Hongbao event – connected with the tradition of giving red envelopes – until 10 November and plans to provide up to $120 in reserves that can be used at Lotte Duty Free’s ecommerce site for each purchase over $70.

 

“Lotte Duty Free is planning to introduce a variety of new services that can attract tourists in preparation for the post-corona [period] along with the introduction of the Huabei service,” said Lee Jung-min, Lotte Duty Free’s Head of E-Commerce.