Core Viewpoint - Xiaohongshu has successfully obtained a payment license through its wholly-owned subsidiary, indicating a strategic move to enhance its financial infrastructure and capitalize on the growth of its e-commerce and local services [1][2]. Group 1: Payment License Acquisition - Xiaohongshu's acquisition of the payment license is seen as a necessary step to address the shortcomings in its financial infrastructure, enabling better control over transaction costs and user data [1]. - The change in ownership of Dongfang Electronic Payment Co., Ltd. to Ningzhi Information Technology (Shanghai) Co., Ltd., a wholly-owned subsidiary of Xiaohongshu, reflects a strategic shift towards self-sustaining payment capabilities [1][2]. Group 2: Financial Implications - The registered capital of Dongfang Payment has increased from 121 million RMB to 200 million RMB, a growth of over 65%, signaling a commitment to enhancing operational capabilities [1]. - Despite the investment, Dongfang Payment has faced financial challenges, with projected revenues of 8.88 million RMB and a net loss of 8 million RMB for 2024, indicating a need for improved transaction flow and customer engagement [2]. Group 3: Future Growth Potential - With the support of Xiaohongshu's platform, Dongfang Payment is expected to leverage high-frequency transaction scenarios such as live streaming rewards and in-store redemptions, which could enhance merchant engagement and profitability [2]. - The potential for exploring small consumer credit based on user credit profiles could further diversify revenue streams and improve financial performance [2].