Innovative Solutions Smoothen Ride for DiDi

About

Didi Chuxing (DiDi) is one of the world’s leading ride-sharing companies, serving more than 550 million users across over 400 cities in China and facilitating 7.5 billion rides per year. Through its mobile app, DiDi offers services including taxi hailing, private car hailing, Hitch (social ride-sharing), DiDi Chauffeur, DiDi Bus and Enterprise Solution.
 

The Challenge

DiDi has been on an ambitious expansion drive as the ride-sharing market continues to boom in China and across the globe. As the Beijing-based firm looked to capture new demographic groups such as short-stay foreigners, business travelers and tourists, DiDi embarked on a mission to overhaul the payment structure of its mobile app by including international credit cards as a form of payment, in addition to existing local methods such as WeChat Pay and Alipay.

The ride-sharing firm outsourced its credit card payment collection process to a third-party payment service provider that upgraded DiDi’s app with an English-language interface as well as the ability to accept payments by international credit cards. While the upgrade made DiDi’s services available to a wider customer base, it also added complexity to the firm’s account structure. To address that, it needed:

• The capability to settle payments across multiple international banks
• The ability to integrate its system with that of the payment provider’s as DiDi made final payments to local drivers in renminbi (RMB), while funding subsidiary accounts for local office expenses in Hong Kong dollars (HKD), U.S. dollars (USD) and RMB. Meanwhile, its payment provider processed funds in USD.
   

The J.P. Morgan Solution

DiDi appointed J.P. Morgan as one of its core cash banking providers to deliver an end-to-end solution within just six weeks. The solution included:

• Implementing a leading-edge platform that automated and seamlessly connected DiDi’s treasury systems with that of the offshore payment provider via J.P. Morgan Host-to-Host. The platform leverages ISO 20022 standards for DiDi’s payment and collection cycles, including auto-reconciliation of returns and rejects processing
• Using J.P. Morgan’s Just-in-Time funding solution to automate the conversion of USD collections from DiDi’s payment provider into the required currencies, ensuring exact amount of USD was deployed just in time to cover local currency expenses
• Leveraging J.P. Morgan Access® InsightSM to achieve real-time visibility and improved cost savings by replacing SWIFT MT942 formats for transaction reporting.

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