For the last few quarters, Xiaomi, the Chinese smartphone maker, has been the top smartphone makers in India. While the competition gets fierce, the company continuously develops something new to generate revenue. Thus, it plans to introduce Mi Credit in India.
Mi Credit will bring Xiaomi into the lucrative, but crowded financial sector. However, the service will not be available in many countries yet. It will launch MI Credit in India, in the coming weeks.
Read also: Xiaomi to Enter South Korean Market Deeper
Mi Pay
In India, Xiaomi has launched Mi Pay last March. The app allows users to send and request money using the Unified Payments Interface platform.
Besides, the app also enables utility bill payment services, mobile recharge, DTH recharge and more.
Mi Credit
The Mi Credit service launched by Xiaomi in September last year. It launched in partnership with KreditBee. However, Xiaomi isn’t offering the loan, it is simply linking the user to a service that will offer the loan. Users can get loads up to Rs 100,000, with interest rates starting at 1.8 percent.
The service was under testing, the official launch is set to take place in the coming weeks.
Read also: Vivo, The Uprising Competitor for Xiaomi in India
India is the biggest market for Xiaomi outside China. With an install base of 70 million phones, Xiaomi is looking at increasing its fin-tech revenues. However, there is a small concern related to user privacy.
Xiaomi uses phone activity data to create a credit profile for its users. Later, the user’s profile develops based on customer “identity, life stage, lifestyle, social relationships, and brand loyalty.”
Customers signing up to share their personal data with Xiaomi includes everything from “professional and educational backgrounds” to “temporary messages history.” Users also have to share information related to the “use of certain apps and websites.”
Besides, the agreement also states that Xiaomi can share personal information with third-party service providers. Lifestyle changes, such as a promotion or a divorce, as part of its approach to credit scoring, is also tracked by the company.
