FINANCE

Kaidianbao Files for Liquidation as China’s Payment Industry Shakeout Deepens

Published: Jul. 8, 2026 2:37 a.m. GMT+8

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Founded in 2006, Kaidianbao obtained a third-party payment license in 2011. Photo: VCG

Kaidianbao Payment Service Co. Ltd., once one of China’s major third-party payment firms, has applied for bankruptcy liquidation as tighter oversight accelerates a shakeout in the country’s payment industry.

A Shanghai court has scheduled a hearing for July 16, according to a notice on China’s national corporate bankruptcy restructuring information platform.

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Kaidianbao Payment Service applied for bankruptcy liquidation amid China’s tighter payment oversight.
A Shanghai court hearing is set for July 16; its license remains valid until December.
The payment industry has shrunk from 271 licensed firms to 162 due to stricter regulations and rising compliance costs.

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Who’s Who

Kaidianbao Payment Service Co. Ltd.: Kaidianbao Payment Service Co. Ltd., a major Chinese third-party payment firm, has applied for bankruptcy liquidation. A Shanghai court hearing is set for July 16. Founded in 2006, it obtained a payment license in 2011. It faced regulatory penalties, high-risk classification by UnionPay, and involvement in corruption cases. Its license remains valid until December.

Quanchengtao Information Technology Service Co.: Quanchengtao Information Technology Service Co. is a controlled affiliate of Kaidianbao Payment Service Co. In October 2025, it applied for bankruptcy liquidation, highlighting ongoing pressure in China's payment industry amid tighter regulation and rising compliance costs.

Yalian Development: Yalian Development is a listed company that previously held a stake in the parent of Kaidianbao Payment Service Co. Ltd. In November 2022, Yalian Development sold its entire stake through a judicial auction, contributing to Kaidianbao's financial weakening.

China UnionPay: China UnionPay, a major payment network, classified Kaidianbao as a high-risk institution in 2025 for failing to follow central bank rules. UnionPay barred Kaidianbao from adding new business and restricted its existing transaction activity, contributing to the firm's financial decline and subsequent bankruptcy liquidation application.

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What Happened When

2006：: Kaidianbao was founded as Shanghai Dianbaiqu Information Technology Co.

2011：: Kaidianbao obtained a third-party payment license.

2018：: The company adopted the name Kaidianbao.

2021：: Yang Biao, a former senior payment official, was sentenced to 12 years in prison for bribery.

November 2022：: Listed company Yalian Development sold its entire stake in Kaidianbao's parent through a judicial auction.

January 2023：: The central bank's Fuzhou branch confiscated and fined Kaidianbao 6.46 million yuan for seven violations.

July 2023：: The central bank's Zhengzhou branch fined Kaidianbao 19.84 million yuan for breaches of merchant-management rules.

2023：: Xie Zhong, a former head of the central bank's payment department, was sentenced to 12.5 years in prison.

May 2024：: New rules for nonbank payment institutions took effect.

December 2024：: Kaidianbao said it would suspend all existing payment services and wind down its remaining business.

2025：: China UnionPay classified Kaidianbao as a high-risk payment institution and barred it from adding new business.

October 2025：: Kaidianbao's controlled affiliate Quanchengtao Information Technology Service Co. applied for bankruptcy liquidation.

By 2025：: Several payment firms were fined more than 10 million yuan each.

Since the start of 2026：: At least six payment institutions have received penalties above 10 million yuan for anti-money-laundering and account-management failures.