Also involved are China-based global private equity firm Primavera Capital Group and online Alibaba subsidiary, mobile financial services provider Ant Financial Services Group, which runs Alipay.
Under the terms of the agreements, Primavera and Ant Financial will invest $410 million and $50 million respectively in Yum China.
This collaboration will see Yum China move into a new chapter of world class mobile payment services for tens of millions of customers across its brands.
“These services include hassle-free Alipay for customers to help shorten queues at the cashier, including membership services for Yum China which are designed to help manage customer relations and promotions,” says Ant Financial Service Group President, Eric Jing.
Yum! brands KFC and Pizza Hut have seen promising marketing results through promotions on multiple Ant Financial platforms. As a licensee of Yum! Brands in China, Yum China Holdings will have exclusive rights to KFC, Pizza Hut and Taco Bell, the latter has yet to expand to China.
KFC and Pizza Hut have more than 7,200 restaurants in more than 1,000 cities in China.
A version of this appeared in Retail News Asia on September 9. Read the rest of the story here.