'Lotte Duty Free Prepares for Post-Corona, Introduces Chinese Payment Service "Huabei"'

First Introduction of Installment Service with Digital Currency in Domestic Online Shopping
Approximately 400 Million Chinese Using Huabei Service, Half Under 30 Years Old

[Asia Economy Reporter Lim Hye-seon] Lotte Duty Free announced on the 27th that it will introduce Huabei, a payment service rapidly gaining popularity among the 2030 generation in China in preparation for the post-COVID era, to Lotte Internet Duty Free starting from the 27th.

Huabei is one of the online payment platform services operated by Ant Group, a subsidiary of Alibaba, China's largest e-commerce company, and is based on a microloan system. It starts with small amounts and increases the credit limit depending on repayment status. Consumers can freely use the loan service within the credit limit to purchase goods, and it also features the option of 12 monthly installment payments per year. In China, where credit card usage is not high, Huabei was first introduced in 2015 and has quickly become part of daily life, with over 400 million users as of the end of 2019.

Lotte Duty Free proactively introduced this new online payment service in anticipation of the return of Chinese tourists after the end of the COVID-19 pandemic. Approximately 80% of sales to Chinese customers on Lotte Internet Duty Free come from those in their 20s and 30s, highlighting the influence of young consumers. By adopting the Huabei service preferred by the 2030 generation, Lotte Duty Free expects to provide a more convenient online shopping environment and secure an additional key customer base.

To commemorate the introduction of the Huabei service, Lotte Duty Free will hold a Hongbao (reward points) event until the 10th of next month. Customers who purchase over $70 will be provided with reward points usable on Lotte Internet Duty Free, up to a maximum of $120, depending on the purchase amount.

Lee Jung-min, Head of the Platform Business Division, said, “With the introduction of the Huabei service, Lotte Duty Free plans to proactively introduce various new services to attract tourists in preparation for the post-COVID era.”