11/12/2023 0 Comments Weixin pay![]() ![]() On the other hand, AliPay was more e-commerce focused, integrating with a market that Alibaba already controlled. When WeChat integrated payment into its social networking app, it primarily specialised in in-app purchases and person-to-person transfers. While both platforms currently offer very similar functionality, accepting in-store, online and a vast range of other payment types, their services were not always like this. While it’s almost certain WeChat Pay and AliPay have the equivalent of a monopoly for non banking institutions in China, there are questions with regards to why there is such demand for both services and not one front runner or distinct market leader, which is common in many industries worldwide. Both WeChat and AliPay have accelerated the cashless transformation in China through strongly incentivising merchants and buyers and by beating out chip and pin competitors like Unionpay they have been able to dominate the Chinese payment industry. Avoiding card machines altogether saved significant costs since maintenance and transactions costs were mostly removed. For larger merchants, AliPay and WeChat Pay used incentives which included free advertisement on their digital platforms. While the margin is slim, SMEs in China realised that by switching to AliPay or WeChat Pay and adopting the new payment technology - provided customers were willing to transact on these platforms - they could save ~2% annually. Fighting off competition from Unionpay, China’s most prominent bank card services company, was relatively easy given the low or nil fees for both buyers and sellers compared to the standard processing fee of ~2% on card machine payments. ![]() Similar to WeChat, Alibaba was able to seamlessly integrate AliPay into their online marketplace and easily acquire new users by cross-marketing it with their current service offerings.īoth organisations also provided strong incentives for merchants to accept payment via their respective platforms. On the other hand, Alipay was launched in 2003, and it wasn’t until after 2008, when Alipay introduced E-Wallets, that usage began to increase substantially. Integrating payment technologies within their current product offering proved to be a seamless transition that was convenient for users. WeChat (owned by Tencent) is one of the world’s most popular social media platforms and is China’s number one social media by active user base. Their ability to generate large adoption and usage numbers stems from their existing business models and brand awareness. In addition, given greater reliance on their payment technology year on year for everyday consumer purchases and transactions, over one quarter of China’s GDP is transacted on the 2 payment providers annually. Both WeChat Pay and AliPay have experienced relatively consistent growth (Figure 1) in terms of active users since 2013. Read the guidelines below for more information.For a new payment technology to become largely adopted you need enough people using that technology on a regular basis and enough merchants willing to accept payments via the new technology. Tencent said that the current step corresponds with the full resumption of international travel and business to China, as well as important international events in the country. Tencent has been trialing payments with overseas credit cards on WeChat Pay since 2019. The specific guidelines and costs may vary depending on the circumstances. When using overseas bank cards to make payments, users may have to pay a 3 percent commission, but Tencent will waive the fees for transactions worth 200 yuan (US$27.86) or less. To utilize the digital environment and functionality, WeChat users in the Hong Kong, Macau, and Taiwan regions can also send and receive digital gift money using their WeChat Pay. ![]() ![]() Residents of China's Hong Kong, Macau and Taiwan regions can also register for WeChat Pay using their travel documents. Tencent, the developer of WeChat, today announced that the app now accepts international bank cards from major card networks, including Visa, Discover Global Network (including Diners Club), JCB and Mastercard.Īfter linking their international cards, overseas travelers will be able to easily access Chinese outlets, including small and medium-sized merchants. International travelers to China can make digital payments at local retailers nationwide by connecting their overseas bank cards to WeChat Pay, or Weixin Pay in Chinese. ![]()
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