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Insights into Sesame Credit & Top 5 Ways to Use a High Sesame Score

These are the top ways in which netizens’ high Sesame Credit scores can be used in daily life.

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There’s been much talk about China’s ‘credit score’ recently, with many media conflating the country’s Social Credit System with the commercial Sesame Credit programme. In this article, we will explain the latter: what is Sesame Credit and what can users do with their high score?

Note: for more about the Social Credit System and differences in its media coverage in China and the West, please see this article.

With all the talks about China’s nascent Social Credit system and commercial social credit programmes, it is becoming clear that Chinese netizens are entering a ‘credit lifestyle’ (信用生活).

“All Chinese citizens now have a score,” is an idea that has popped up in many foreign media over the past years, often conflating it with China’s nascent ‘Social Credit System.’ To read more about the Social Credit System see our articles about this here or here. In this article, we will solely focus on Sesame Credit.

On Weibo, the official Sesame Credit account (@芝麻信用), which has over 240,840 followers, often announces new ways for people to profit from their (high) Sesame Credit score.

What’s on Weibo explores and lists five different ways in which a high Sesame Credit score can be used in China today. But first – what actually is Sesame Credit?

 

About Sesame Credit

 

Sesame Credit (Zhīma xìnyòng 芝麻信用) was launched on January 28, 2015, by Alibaba’s Ant Financial, after it had received permission by the PBOC (People’s Bank of China) to be one of the eight Chinese companies to experiment with personal credit reporting.

According to the Sesame Credit company, its major goal is to make credit more widely available to consumers and small business owners, and to “enable credit providers to make holistic and accurate decisions,” while also “empowering merchants to provide more credit-related services.”

Image via http://www.twoeggz.com.

Because Sesame Credit is part of Jack Ma’s Alibaba Group family (Ant Financial is an affiliate of the Chinese Alibaba Group), Sesame Credit has an enormous amount of data at its disposal, from e-commerce sites to finance products. China’s biggest shopping websites Taobao and Tmall belong to Alibaba’s vast online ecosystem, as does payment app Alipay.

It is not mandatory for users to opt into Sesame Credit. Some have compared the system to a loyalty program, although it is a bit more than that. Since 2015, for example, Sesame Credit also cooperates with the popular online dating service company Baihe.com (百合网), so that people can link their dating profile to their credit score. Sesame Credit already had 520 million users as of 2017.

Since its launch, various foreign media have written about Sesame Credit as an ‘Orwellian system.’ Among others, one of the reasons for this, is that Sesame Credit incorporates a publicly available ‘blacklist’ into its scoring process. The ‘blacklist’ is a Chinese courts’ list with the names of people that have an effective court justice against them; inclusion on this list can make users’ existing Sesame Credit drop dramatically, which would make people miss out on all perks of having a high Sesame Score.

Earlier in 2018, Alibaba, along with the seven other private credit programmes that were allowed to run their trial in 2015, become shareholders and active contributors to a new unified platform that has access to an enormous number of personal credit data. At the so-called ‘trust alliance’ (信联) Baihang Credit (百行征信), state level and commercial organizations join forces in further developing China’s credit systems.

 

About the Score

 

Within the Sesame Credit programme, the lowest score one can get is 350. The highest is 950. This score is based on users’ behavior across various platforms. A score of 550 to 600 is an intermediate/normal score. 600-650 is considered a ‘good’ score. Those in the 700-950 range are exceptionally high in score.

For those who first opt-in to Sesame Credit, and who have not had any violations, 600 is usually the score to receive.

Sesame Credit example scores explained, from 385 being in the low range to 731 being in the ‘good’ range.

Some of the important elements the score is allegedly based on, are –

• (35%) general credit history: past payment history and indebtedness – if persons still have enough credit on their credit card when purchasing items, if they pay their gas & electricity on time [often done through Alipay in China], pay violations tickets on time, etc.
• (25%) general financial status/fulfillment capacity: the available amount on users’ Alipay account, if they are renting a car/house etc. and are able to pay for it, status of Huabei (a credit card function within the Alipay wallet), etc.
• (20%) online behavior and preference: the extent to which an account is actively used, how many purchases are done, etc.
• (15%) people’s personal characteristics: educational background, address, real-name registrations, etc.
• (5%) contact network and interpersonal relationships: how many online contacts one has, ones’s influential power in contact list, interactions between user and friends, etc.

For those who opt in to Sesame Credit and have a high score, there are many different ways to benefit from it, as listed below.

 

The Top Ways to Benefit from Sesame Credit

 

Please note that there are more ways to benefit from a high Sesame Credit score, but we have listed five popular ones below.

 

#1 ‘Credit Treatment’ at Hospitals

 

In November of 2017, Sesame Credit first launched its “Credit Medical Treatment” (信用就医) services for people with a score over 650, with Shanghai’s Huashan hospital being the country’s first hospital to implement the function.

With “Credit Medical Treatment,” patients could save up to 60% of waiting time at hospitals by cutting lines and not needing to pay for treatments upfront. Payments are done through Sesame Credit’s in-app credit function Huabei (花呗).

While a normal procedure at Chinese hospitals can be time-consuming, the Sesame Credit procedure is much more efficient, mainly because people do not need to line up to pre-pay for their medical check-up and the medications.

Normal procedure:

(±20 min) 1. Arrive and register at the hospital and pay for it
(±60 min) 2. Waiting time to see a doctor
(±10 min) 3. Doctor’s appointment/consultation
(±20 min) 4. Line up for payment [of examination]
(±20 min) 5. Check-up/Examination
(±20 min) 6. Queue up for payment
(±10 min) 7. Pick up medicine

Image via xinhuanet.

The procedure with Sesame Credit:

(±3 min) 1. Register at hospital and payment by phone.
(±10 min) 2. Automatically get a number to see the doctor.
(±10 min) 3. Doctor’s consultation.
Payment [for examination]
(±20 min) 4. Examination.
Payment [for medicine]
(±10 min) 5. Pick up medicine

There are also other ways in which people with a good Sesame Credit score can enjoy extra services and benefits at hospitals. Those with a score over 600, for example, can rent a wheelchair in hospitals without deposit.

 

#2 Try First, Pay Later

 

Since September 2018, Sesame Credit offers the possibility to “try out” purchases from Tmall for consumers who have a Credit Score of over 700, promoting the idea of “never regretting a purchase.”

With this concept, people can order clothes or other items from e-commerce platform Tmall (天猫 Tiānmāo in Chinese) without any risk, having the guarantee to always being able to send back items that are unsatisfactory without paying for them.

There are also frequent promotions done by brands and companies in collaboration with Sesame Credit, such as offering people with a high credit score (over 750) to try out the newest Ford for three days, or to use the latest Meitu phone for 30 days for free, without necessarily needing to buy it afterward.

Meitu promotion for Sesame Credit users with a score over 750.

Sesame Credit also makes it more tempting for its users to spend money on (Alibaba) platforms in other ways. The higher one’s credit is, the more one is able to lend from online lending service Huabei; those with a credit higher than 750 can lend up to 20,000 RMB (±$2890). Unsurprisingly, the literal translation of Alipay’s ‘online credit card’ service Huabei (花呗) is “Just Spend.”

 

#3 No Deposit on Shared Bikes (and other things)

 

Sesame Credit has a partnership with bike sharing platforms Hello Bike (哈罗单车) and Ofo, allowing users with a credit over 650 points to rent these bicycles, that can be found anywhere in bigger cities in China, without paying a deposit.

It is not the only service that does not require a deposit for those with a high Credit score; using a shared umbrella, or a publicly available shared phone charger, or even renting apartments, often no longer needs a deposit for those with a higher score.

 

#4 Open Access to Libraries

 

In many places in China, people who have a Sesame Credit score over 550 no longer need to pay a downpayment and can set up a library card for free, in other places people with a higher Sesame score no longer need a library card at all to borrow books at their local libraries and/or their automated self-service street libraries (just their ID).

Since April of 2018, this special service for Sesame Credit users (not needing a card) was introduced in the entire Zhejiang province. Public libraries in other places, such as Shanghai, have already been experimenting with Sesame Credit perks for library lovers since 2015.

 

#5 Special Lounges at Train Stations

 

Especially during peak seasons such as the National Day holidays or Spring Festival, China’s train stations can get exceptionally busy. For Sesame Credit members with a score over 650, there are now special lounges to relax.

Sina notes that the lounge is only available to those members who have also bought a higher fair ticket (first class), or who have a platinum status.

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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Manya Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

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China Digital

Are Douyin and TikTok the Same?

China’s popular “Douyin” app is known as “TikTok” in markets outside of China. But is it really one app?

Gabi Verberg

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TikTok, known as the international version of the Chinese successful short video app Douyin, is a global hit. Despite Bytedance’s efforts to present Douyin and TikTok as being the same product, they are actually two separate entities.

Douyin, (抖音, literally “shaking sound” in Chinese) is a short video media app owned by China’s young tech giant Bytedance (字节跳动). The app allows users to create, edit, and share short videos as well as livestreams, often featuring music in the background.

Douyin’s international name is TikTok, an app that looks the same as Douyin, while in fact, the two are not one and the same, despite Bytedance’s efforts to brand it as such.

This is not the first time a Chinese tech company presents one app as being the same everywhere, while it actually is not. Tencent’s super app Weixin (微信), also known as WeChat, runs two different systems for its Chinese and international version, as explained here.

When downloading either WeChat or Weixin, both being the same app, the app determines what features you can use and what information you can see based on the telephone number you register your account with.

In practice, this means that when you are a non-Chinese resident, you will be using the ‘international version,’ meaning you will have access to (international-specific) content that a user registered with a Chinese telephone number will not be able to see. The overseas version also does not have the same Wallet functions the Chinese version has.

 

Two apps, two systems

 

The difference between WeChat vs Weixin and TikTok vs Douyin, however, is not the same. Whereas the first is basically one app with two different modes, Douyin and TikTok are two completely separate entities.

Depending on the app store you use, you will either be able to download Douyin or TikTok. Users of Chinese app stores can only find Douyin, whereas users of the overseas Apple store or Google Play will only find TikTok available for download.

That the apps are actually separate systems becomes clear when running the same search words in both apps. As shown below, both apps provide different content for the same search words.

Left image: TikTok, Right image: Douyin.

For example, one of TikTok’s most popular channels of this moment is called ‘LisaandLena,’ a verified account by two German twins which has over 32 million fans. However, when you enter ‘LisaandLena’ in Douyin, the only result is an unverfied account which only has 102 fans and shows seven videos.

Results are the same the other way around. One of Douyin’s most popular accounts is that of Chinese actor Chen He (陈赫), who has over 52 million fans features 62 videos at this week. However, when running the same name search in TikTok, several unverified accounts come up, all showing some similar videos like those on Chen He’s Douyin account.

Top left picture: Douyin; top right and two bottom pictures: TikTok.

This suggests that, although Tiktok and Douyin have the same functions, layout, and logos, its users in China and overseas are kept completely separate and are not able to interact with eachother, something that a recent Chinese blog also discusses in detail.

 

The Rise of Douyin and TikTok

 

Ever since its launch in September 2016, Douyin has grown immensely popular. Just one year after its release, Douyin had more than 100 million users and became the second most downloaded app in the Chinese Apple store.

In September 2017, ByteDance took its app overseas; branding Douyin as TikTok for the international market, while keeping the app’s original name, Douyin, for its Chinese market.

Similar to Douyin, TikTok appeared to strike the right chord among internet users right away. In the first quarter of 2018 (note: within half a year after release), TikTok was the 6th most downloaded non-game app in the Apple app store and Google play store combined. In the Apple app store, it was even the most downloaded app. With its 45,8 downloads in the first quarter, TikTok beat apps such as Facebook, Youtube, or Instagram in the popularity rankings.

But that is not where TikTok’s short-video craze halted. In August 2018, TikTok merged with short video app Musical.ly (founded in 2014), that had over 100 million monthly active users at the time. In October last year, after receiving several investments, ByteDance Ltd. officially became the worlds most valuable private start-up, valued at 75 billion dollars.

By summer, ByteDance announced that TikTok, (meaning both apps combined) had more than 500 million monthly active users worldwide. About 300 million of these 500 million monthly active users are China’s domestic users.

 

Why does ByteDance separate Douyin and TikTok?

 

Why would Bytedance go through the effort to create two apps running on different systems? The answer partly lies in China’s strictly controlled online environment, where (social) media companies have to adhere to local policies on what is and what is not allowed to be published on their (user-generated) platforms.

In 2018, Bytedance was already criticized by authorities for hosting ‘inappropriate content’ on its news platform Jinri Toutiao. The joke app Neihan Duanzi, also run by Bytedance, was forced to shut down. Afterward, the company vowed to hire 4,000 additional censors, clearly not taking any risks in getting more warnings from authorities.

By separating Tiktok from Douyin, ByteDance can closely regulate the contents uploaded to Douyin, as they will be disseminated within China, while leaving overseas TikTok and its users relatively free to share whatever content they want to share (do note that the app also set up a team of 20 censors in Indonesia to monitor and ‘sanitize’ content from the platform there, after receiving complaints from Indonesian authorities).

 
New regulations for online video content
 

In light of tighter control on online video platforms, it seems that Bytedance’s monitoring team will have to work around the clock. On January 9, China’s Netcasting Services Association (中国网络视听节目服务协会), an association directly managed by the Ministry of Civil Affairs, issued new regulations that online short video platforms in China should adhere to. One of the new guidelines requires all online video service providers to carefully examine content before it is published.

Tech Sina reports that the new stipulations require that all online video content, from titles to comments and even the use of emoticons, has to be in accordance with regulations, which prohibit any content that is ‘vulgar,’ is offending to the Chinese political system, puts revolutionary leaders in a negative light, or undermines social stability in any way.

On Weibo, the newest regulations became a topic of discussion, with many netizens wondering how short video apps such as Douyin are going to comply, and how its users will be affected.

Although Douyin has not responded to how and if its platform will change in light of the latest regulations, we can expect that TikTok will not be affected – it will be marching to the beat of his own app.

By Gabi Verberg, with contributions by Manya Koetse

Interested to know more about Bytedance and TikTok? We recommend listening to this podcast by Techbuzz China.

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2019 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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China Digital

Alipay Changes Name to Hanbao (But for Users, Nothing Will Change)

Alipay, oh, Alipay, wherefore art thou Hanbao now?

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What’s in a name? That which we call Alipay, by any other name would do the trick. But although the title has changed, nothing will change for Alipay users.

On January 8, news that Alibaba’s online payment platform ‘Alipay’ (Zhifubao 支付宝) changed its official name to Hanbao (瀚宝), became a big topic of discussion on Chinese social media. The hashtag ‘Zhifubao Company Changes Name’ (#支付宝公司更名#) received millions of views on Tuesday, reaching over 30 million by Tuesday night.

Zhifubao (支付宝) is the Chinese name for the country’s leading mobile and online payment app. The brand ‘Zhifubao’ literally means ‘payment treasure.’ Outside of China, Zhifubao is known by its English name ‘Alipay.’

Alipay is operated by the Ant Financial Services Group (蚂蚁金服), an affiliate company of Alibaba.

The name change was reportedly registered for the ‘Zhifubao (China) Information Technology Company’ (支付宝[中国]信息技术有限公司), that changed into ‘Hanbao (Shanghai) Information Technology Company’ (瀚宝[上海]信息技术有限公司), just as ‘Alipay China Holding Limited’ has been changed to ‘Hanbao China Holding Limited.’

The name change was registered on December 18th of 2018. The legal ownership of the company has also been changed from Ma Yun (Jack Ma) to Ye Yuqing (叶郁青), who is the Ant Financial Chairman. Yicai Global already reported about a change to Alipay’s legal entity in the summer of 2018.

In October of 2018, the Financial Times reported that Jack Ma had quietly relinquished his ownership of the legal entities at the heart of Alibaba, after announcing he would retire as Alibaba’s chairman.

The Alipay company responded to the commotion, saying that the name change is just an “administrative matter” that will not affect consumers using the app in any way.

On Weibo, however, not everyone is happy with the change. “I owe Jack Ma some money, why do I now need to return it to Ye Yuqing?” one commenter wonders. Many others say similar things, jokingly saying they now no longer owe Jack Ma money. The Alipay platform allows users to buy items with credit through their ‘Huabei’ loan tool.

“Is Jack Ma no longer looking after us?!”, others say. “Being legal representative and being a shareholder are two different things,” one Weibo user replies.

The fact that the ‘Hanbao’ name is pronounced the same way as ‘Hamburger’ (汉堡) in Mandarin is also a reason some people are mocking the name change. Some netizens wonder if ‘Alipay’ will now change into ‘Hanbaopay.’

In 2017, there was also some online commotion when it was announced that McDonald’s China would change its name from Maidanglao to Jin Gongmen (‘Golden Arches’). At the time, McDonald’s China also responded to its name change, saying that it was for “official certification” only.

Time has shown that indeed nothing changed; just as the McDonald’s hamburgers are still the same, Alipay’s official hamburger-sounding new name is unlikely to affect its payment convenience.

Read more: Insights into Sesame Credit & Top 5 Ways to Use a High Sesame Score

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2019 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com

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What’s on Weibo provides social, cultural & historical insights into an ever-changing China. What’s on Weibo sheds light on China’s digital media landscape and brings the story behind the hashtag. This independent news site is managed by sinologist Manya Koetse. Contact info@whatsonweibo.com. ©2014-2018

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